Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

Hang Onto Your Wallets: Negative Interest, the War on Cash, and the $10 Trillion Bail-in

November 23, 2015 by mosesman
http://www.ft.com/intl/cms/s/0/159b17ca-47f3-11e5-b3b2-1672f710807b.html
Click on image for article. Needs subscription.
  • Hang Onto Your Wallets: Negative Interest, the War on Cash, and the $10 Trillion Bail-in 
    by Ellen Brown, http://www.ellenbrown.com/  
    In uncertain times, “cash is king,” but central bankers are systematically moving to eliminate that option. Is it really about stimulating the economy? Or is there some deeper, darker threat afoot?
    –

    Remember those old ads showing a senior couple lounging on a warm beach, captioned “Let your money work for you”? Or the scene in Mary Poppins where young Michael is being advised to put his tuppence in the bank, so that it can compound into “all manner of private enterprise,” including “bonds, chattels, dividends, shares, shipyards, amalgamations . . . .”?
    –
    That may still work if you’re a Wall Street banker, but if you’re an ordinary saver with your money in the bank, you may soon be paying the bank to hold your funds rather than the reverse.
    –
    Four European central banks – the European Central Bank, the Swiss National Bank, Sweden’s Riksbank, and Denmark’s Nationalbank – have now imposed negative interest rates on the reserves they hold for commercial banks; and discussion has turned to whether it’s time to pass those costs on to consumers. The Bank of Japan and the Federal Reserve are still at ZIRP (Zero Interest Rate Policy), but several Fed officials have also begun calling for NIRP (negative rates).
    –
    The stated justification for this move is to stimulate “demand” by forcing consumers to withdraw their money and go shopping with it. When an economy is struggling, it is standard practice for a central bank to cut interest rates, making saving less attractive. This is supposed to boost spending and kick-start an economic recovery.
    –
    That is the theory, but central banks have already pushed the prime rate to zero, and still their economies are languishing. To the uninitiated observer, that means the theory is wrong and needs to be scrapped. But not to our intrepid central bankers, who are now experimenting with pushing rates below zero.
    –
    Locking the Door to Bank Runs: The Cashless Society
    The problem with imposing negative interest on savers, as explained in the UK Telegraph, is that “there’s a limit, what economists called the ‘zero lower bound’. Cut rates too deeply, and savers would end up facing negative returns. In that case, this could encourage people to take their savings out of the bank and hoard them in cash. This could slow, rather than boost, the economy.”

    –
    Again, to the ordinary observer, this would seem to signal that negative interest rates won’t work and the approach needs to be abandoned. But not to our undaunted central bankers, who have chosen instead to plug this hole in their leaky theory by moving to eliminate cash as an option. If your only choice is to keep your money in a digital account in a bank and spend it with a bank card or credit card or checks, negative interest can be imposed with impunity. This is already happening in Sweden, and other countries are close behind. As reported on Wolfstreet.com:
    –
    The War on Cash is advancing on all fronts. One region that has hogged the headlines with its war against physical currency is Scandinavia. Sweden became the first country to enlist its own citizens as largely willing guinea pigs in a dystopian economic experiment: negative interest rates in a cashless society. As Credit Suisse reports, no matter where you go or what you want to purchase, you will find a small ubiquitous sign saying “Vi hanterar ej kontanter” (“We don’t accept cash”) . . . .
    –
    read more.
http://www.telegraph.co.uk/finance/bank-of-england/11874061/Negative-interest-rates-could-be-necessary-to-protect-UK-economy-says-Bank-of-England-chief-economist.html
Click on image for article.
http://www.armstrongeconomics.com/archives/35194
Click on image for article.
http://armstrongeconomics.com/archives/30671
Click on image for article.

end

Post navigation

Previous Post:

Bashar Al-Assad Interview: “Al Qaeda was Created by the Americans With the Help of Saudi Wahhabi Money”. Turkey, Saudi Arabia, Qatar Support ISIS

Next Post:

Global Trade Just Snapped: Container Freight Rates Plummet 70% In 3 Weeks

Pages

  • About

Recent Posts

  • CDC Now Admits Covid Is Just The Flu
  • What a Collapse of the Dollar Means for Your Savings, Stocks, & Future (Andy Schectman Interview)
  • VWAXC-INES CAUSE MASSIVE DIE-OFF IN TAIWAN! – Ja-bs Kill More Than Chinese Government!
  • The Tyranny Of The Coming Programmable Digital Currency
  • It’s Over: CDC Says People Exposed To COVID No Longer Need To Quarantine
  • TERRIFYING! IRS hiring Thousands of armed ‘Special Agents’ to use ‘Deadly Force’?!
  • Athletes Around World Confirmed Dead By vWac-xine
  • Artificial Intelligence: A Secular Look At The Digital Antichrist
  • Rafi Farber: Physical Gold Leaving Comex at All Time Record Pace
  • Ex-President Medvedev Warns Europe Of “Possible Incidents” At Nuclear Facilities
  • BREAKING POINT for America: Steve Quayle And Mike Adams Warn of the Coming Nullification, Secession And CIVIL WAR
  • CDC Admits It Gave False Information About COVID-19 Vaccine Surveillance
  • They’re Going To Enact The Digital Mark And Force Us All Into Slavery – Tyranny Is Here When Government Can ‘Just Turn Off Your Money’ To Force You To Comply With Their Agendas
  • Situation Update, Aug 11, 2022: Emboldened IRS Demands New Hires Be Willing to KILL AMERICANS
  • New Atlas LIVE: US-China Tensions Over Taiwan Continue
  • Ep 86: Live From The Vault — The BIS, the Bullion Banks & the Basel III Price Reset!
  • Alasdair Macleod: Gold and the Upcoming Recession
  • Warning Signs Of An imminent Banking Crisis?
  • Has Inflation Been Defeated? | Silver Drained From the Comex EXPLAINED – Rafi Farber
  • Gravitas: 5 Chinese Companies to Leave Wall Street

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
November 2015
M T W T F S S
« Oct   Dec »
 1
2345678
9101112131415
16171819202122
23242526272829
30  
© 2022 Socio-Economics History Blog | WordPress Theme by Superbthemes