Financial Crisis Tsunami of Massive Debt as Central Banks Negative Interest Rates Begin!
[youtube=https://www.youtube.com/watch?v=zRc2JDXfXeQ]
- Will a bank lend out money at zero interest rates? Obviously not. There is no profit for them with the risk. If interest rates go negative, it means that banks lend out money and pay the borrower interest instead of earning interest. No bank would offer loans and lose money in the process. If banks cannot make money with loans, they are no longer fulfilling their primary economic function.
– - The world economic system is based largely on debt. Real estate developers build housing/property projects based on financing by banks. Countries build infrastructure: railways, roads, ports, public utilities … based on debt ie. borrowing from banks. Individuals/families buy houses on borrowed money. Without banks offering loans, the economy will grind to a halt.
– - Negative interest rates imply that the financial/banking system is failing! The economic system will grind to a halt! Got physical gold yet?
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