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Thread: Depositors are next to be hit with negative interest rates

  1. #21
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    Quote Originally Posted by Lenno View Post
    I was offered 2.79% on a CD, if I gave the bank 100,000 for 37 months. That's 100,000 for over 3 years! In the 1980's I would have been making 13% on that money!
    https://www.marketwatch.com/investin...countrycode=bx

    the 30 year treasury yield is at 2.096% this aint good! money you have in an investment bank will be lost.
    ===============================
    you can't explain crazy 'cause crazy's crazy!!
    just cause youre paranoid doesnt mean they aint after you!
    Veritas vos liberabit

  2. #22
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    Quote Originally Posted by KingsX View Post


    The IMF has similar plans to also steal your cash!


    From Feb 2019 Bloomberg article:


    "... economists at the International Monetary Fund wrote on the group's blog. Cash, which can be held interest free, offers a way around negative rates, but electronic money issued by a central bank can't be stuffed under any mattress.

    IMF economists Ruchir Agarwal and Signe Krogstrup said that dividing the monetary base into two separate currencies - cash and electronic money - could allow rates to be cut even deeper below zero. E-money would pay whatever the policy rate is and cash would have an exchange rate against the e-cash, they wrote.

    The key is the conversion rate since that would let cash depreciate at the same pace as the negative interest rate on e-money. Shops would also start advertising prices in e-money and cash separately.

    "Cash would thereby be losing value both in terms of goods and in terms of e-money, and there would be no benefit to holding cash relative to bank deposits," Agarwal and Krogstrup said. "This dual local currency system would allow the central bank to implement as negative an interest rate as necessary for countering a recession, without triggering any large-scale substitutions into cash."

    more at link

    https://www.bloomberg.com/news/artic...negative-rates





    Surely someone has a comment about this ??


  3. #23
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    Invest in mattresses and coffee cans?
    Plato once said, “Wise men speak because they have something to say. Fools, because they have to say something.”

    "Fere libenter homines id quod volunt credunt." "Men willingly believe what they wish to believe."
    Julius Caesar

  4. #24
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    Quote Originally Posted by Davy Crockett View Post


    Invest in mattresses and coffee cans?




    Did you read my last post ??

    The IMF has plans to make sure cash squirreled away in mattresses or coffee cans also loses its purchasing power so taking cash out of negative interest rate banks will not do you any good. In other words, they are planning to STEAL the worth of the cash in your mattresses and coffee cans by making cash less valuable.


    Quote from Bloomberg's IMF article in my last post:

    The key is the conversion rate since that would let cash depreciate at the same pace as the negative interest rate on e-money. Shops would also start advertising prices in e-money and cash separately.

    "Cash would thereby be losing value both in terms of goods and in terms of e-money, and there would be no benefit to holding cash relative to bank deposits,"




  5. #25
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    Yeah
    Plato once said, “Wise men speak because they have something to say. Fools, because they have to say something.”

    "Fere libenter homines id quod volunt credunt." "Men willingly believe what they wish to believe."
    Julius Caesar

  6. #26
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    Quote Originally Posted by KingsX View Post


    Did you read my last post ??

    The IMF has plans to make sure cash squirreled away in mattresses or coffee cans also loses its purchasing power so taking cash out of negative interest rate banks will not do you any good. In other words, they are planning to STEAL the worth of the cash in your mattresses and coffee cans by making cash less valuable.


    Quote from Bloomberg's IMF article in my last post:

    The key is the conversion rate since that would let cash depreciate at the same pace as the negative interest rate on e-money. Shops would also start advertising prices in e-money and cash separately.

    "Cash would thereby be losing value both in terms of goods and in terms of e-money, and there would be no benefit to holding cash relative to bank deposits,"



    At that point is when banksters and politicians
    need necktie parties from tall lamp posts, if not before then.
    "Stand your ground. Don't fire unless fired upon, but if they mean to have a war let it begin here." Captain John Parker, to his Minute Men on Lexington Green, April 19 , 1775.

  7. #27
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    ‘Negative’ Interest Rates
    Used to Be Unthinkable
    in the U.S. - Not Anymore




    " Negative interest rates work differently by making sovereign bonds an unattractive investment. "What they're trying to do by driving the risk-free rates to zero or lower is to push people and institutions to invest in all sorts of other riskier assets," explains Lon Erickson, portfolio manager and managing director with Thornburg Investment Management.

    Riskier assets include stocks, corporate bonds, and other assets that can transfer money to mid-sized and smaller companies that might be more likely spend.

    Desperate measures

    "Hopefully the borrower then puts money back into the economy in the form of research and development, equipment, or employees," said Jeff Powell, chief investment officer of Polaris Greystone Financial Group. "It's unconventional. You talk about desperate measures."

    These unconventional measures are desperate because, by using them, central bankers tacitly admit that they don't posses the tools to easily and safely steer an economy out of serious trouble. "


    entire article at link

    https://fortune.com/2019/08/14/fed-n...nterest-rates/


  8. #28
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    From Martin Armstrong today.

    IRS: Hello; This is the IRS helpline. What is your problem?
    Obviously, you owe us money or you would not be calling.
    CITIZEN: Can you explain why I owe you money?
    IRS: Its called taxes.
    CITIZEN: Well how much do I owe?
    IRS: That is your job to figure it out.
    CITIZEN: So I just pay you what I want?
    IRS: No. We know exactly how much you owe.
    CITIZEN: So why won’t you tell me?
    IRS: You have to calculate that number yourself.
    CITIZEN: What if I get it wrong?
    IRS: You have 20% interest, penalties. We could also
    take your home and put you in prison.
    CITIZEN: This does not seem fair.
    IRS: Blame your mother.
    CITIZEN: What does my mother have to do with this?
    IRS: It was her job to tell you the truth.
    CITIZEN: What is that?
    IRS: Life is not fair!
    ​HAVE A PLAN TO KILL EVERYONE YOU MEET



  9. #29
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    I just might add our fearless leader keeps hounding the fed to lower rates.
    But he's looking out for us correct?

  10. #30
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    Quote Originally Posted by KingsX View Post


    Did you read my last post ??

    The IMF has plans to make sure cash squirreled away in mattresses or coffee cans also loses its purchasing power so taking cash out of negative interest rate banks will not do you any good. In other words, they are planning to STEAL the worth of the cash in your mattresses and coffee cans by making cash less valuable.


    Quote from Bloomberg's IMF article in my last post:

    The key is the conversion rate since that would let cash depreciate at the same pace as the negative interest rate on e-money. Shops would also start advertising prices in e-money and cash separately.

    "Cash would thereby be losing value both in terms of goods and in terms of e-money, and there would be no benefit to holding cash relative to bank deposits,"



    so investing in PM's and chickens and pigs will be the best bet?
    The man who reads nothing at all is better educated than the man who reads nothing but the newspapers."
    Thomas Jefferson

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