What the Heck are Negative Interest Rates Anyway?

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16 Replies to “What the Heck are Negative Interest Rates Anyway?”

A serious signal for me to withdraw all cash from all accounts and either secrete them in a better place than the mattress or to buy other commodities (are we thinking gold) and sequester same.

I would not like to try and keep everything I have accumulated under a mattress at home. cash is a good idea but that ends where the government can curtail your use of cash, and eventually they will get to that point. the ability to control all aspects of our lives has always been the goal of socialists everywhere and Canada is no exception. the inflating of the currency and low interest rates has reduced my potential spending ability, of my retirement funds, by about 10% in the last ten years and that continues at a sustained pace. Those who do not live on their own dime rarely see this happening. when you have to keep track of how long you can live on what you have you become very aware of both the incompetence of government and that which is also intentional. wake up folks.

Actually, negative interest is very simple: instead of paying you interest on your savings, the bank will charge you for keeping your money in the bank.

In Sweden where rates are already negative apparently they charge you a fee if you use cash to pay for something.

Well said.
All of these low interest rates or negative interest are designed to eventually make you totally dependent on the state and to control your economic activities.

Frances >
“A serious signal for me to withdraw all cash from all accounts …….. or to buy other commodities.”
This is one of the tactics for the Central Banks, by forcing people into taking their “stagnant” savings to stimulate the economy through investments and spending thus increasing the “velocity” of currency circulation.

old white guy >
Good comment.
The thing is that government’s are never in it for your benefit, citizens are basically a commodity to be invested, bought, or sold like any other to keep the power and control in the hands of the few that have power & control.
The ONLY way to make government pay attention is to either offer more power and control or threaten it.

The rate in Canada has been negative for some time. Once the central bank goes under 2% inflation takes you into negative territory.
It’s a way to erode savings

Actually you are right on with that brief and very clear statement.

any naysayers out there that still deny the long term trend is the hyperconcentration of ALL wealth, ALL assets, ALL property into the hands of an extremely and ever shrinking minority?
it is the ultimate result of capitalism, and the debt based economies which turn the world into one gigantic ponzi scheme.
it can happen real fast once the thing gains a certain momentum. past examples are the middle ages and royal aristocracies. same thing only more so.
p.s. royalty is the biggest fraud ever perpetrated on the masses. how so? just keep going back, back, back over the generations and wind up with a monkey or Adam, neither of which were royals. ‘blue bloods’. ya, is that another genetic based defect from inbreeding?

Oh well.
Money is just the official unit of exchange.
It has no value of its self, as governments parasites have chosen to debase these units,traders will have to chose a new unit of trade.
Has to happen as trade requires trust, if the unit of exchange keeps changing then it is useless for planning trades.
Wether we will use Bit Coin or Canadian Tire Money is dependent on what works, the way the kleptocracy is going the unit may come to be a common calibre of rifle round.
As for negative interest rates…when producers go on strike the wealth available to steal,falls.
Kleptocratic Parasites cannot do without so they seek to steal any pools of wealth left.
Your savings being an obvious goal,as you must be rich to have saved while everyone else spent …Social Justice Yeah.
Then Death and estate taxes.
And seizure of a percentage of RRSPs will follow,either through higher exit taxes or an outright grab.
Message to producers;”Do not steal,you kleptocracy hates and fears competition”.

soixantchose >
“past examples are the middle ages and royal aristocracies. same thing only more so.”
Monarchial rule and feudal systems are not the same thing as “Capitalism”.
……Neither is “Crony Capitalism” the current driving force of many western countries that incorporates both sides of the political spectrum. See Democrats like Clinton, Pelosi, Obamba.
“Trudeau’s Liberals bring Canada back to Chretien era cronyism and conflicts of interest”
http://www.therebel.media/trudeau_s_liberals_bring_canada
This is not the “Ultimate result of Capitalism”, but we have seen the ULTIMATE results of Socialism haven’t we.

Capitalism has nothing to do with it. Maybe shift your focus to the legalized money counterfeiters, aka central banks.

Watto >
I still chuckle at the “Occupy Wall Street” gangs camped out in front of banks and pooping on police cars, yet you could have played a game of football in front of the Whitehouse gates for lack of people.
Of course in all fairness that may change once a black man is no longer resident there in 2017. The useful idiots on the left do have priorities you know.

Hey Cap’n Cannibalism, are you making that video from the basement suite you live in or is it your parent’s basement?
Really. You live there in that pathetic place and you’re selling financial or life advice to other schmucks?
WOW! Just wow.
What a loser. I can see why you’re against people donating to charity because you, dear boy, are a charity case.
That said, the Banks don’t have to borrow money from the Federal Reserve, government does that in order to indebt(enslave) the citizens in whose name they borrow the money.
The Banks create money, literally, out of thin air.
Banks don’t lend money based on their own reserves anymore and haven’t for many decades.
(there is no longer any law requiring banks to have reserves on to pretend to base their money lending)
There is absolutely zero relationship between real productivity based money on balance and the money Banks lend out anymore.
When governments borrowed more money to bail out the Banks in 2008, they didn’t bail the banks out, they sunk their citizens en mass deeper in debt to the Federal Reserve(privately owned entity) without doing anything at all to the Bank’s ability to lend because Banks lend money that they never have in the first place.
It’s a frickin’ shell game and the Banks are starting to declare that if you’re playin’ they aren’t payin’,(interest) because they don’t have to keep up the pretense that they need a balance of depositors that they’ll pay interest to and that the money they lend isn’t just created out of thin air, which is a fake concept for the consumption of retards(like you) anymore.

governments create the circumstances that banks have to react to , where you been boy?

16 Replies to “What the Heck are Negative Interest Rates Anyway?”

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