![why-not-negative-interest-rates[1].jpg](https://i.imgur.com/JDBIlbH.jpg "why-not-negative-interest-rates[1]")
Why do some countries have NEGATIVE interest rates?
How does that even work?
>>68062405
>How does that even work?
you lose money if you don't spend it
>>68062534
this, fucking jews won, everyone go home
The interest rate is below the inflation rate, it's meant to make loans more accessible thus boosting leveraged business providing more jobs, but instead it sends a negative price signal and people avoid debt altogether.
It's like that guy who's not getting hired because his preferred salary is so low, in reality he's just desperate to get a job.
>>68063400
not tue bro, they actually CHARGE you to keep money in the bank
>>68062405
basically charging you money for keeping it safe, .like renting a safe deposit box and keeping your money in it.
>>68063400
>instead it sends a negative price signal and people avoid debt altogether
do you have a source on that?
>>68064992
More like charge you money to fucking gamble it all away
>>68065710
No...
But the common argument is how strong and how much faith can someone have in a currency that's almost being given away?
On the other hand, do you have a rebuttal?
>>68064992
>basically charging you money for keeping it safe, .like renting a safe deposit box and keeping your money in it.
No it's not. Money isn't even a physical thing to a bank. It's a data in a computer. Even if there was some equipment used to secure the database you don't need to be charged more for having more money.
a 32 bit data byte can hold 0 or 2^32 dollars, but the bank will charge you more for a larger number.
Really, the governments are all broke. The USA just went back to 0% interest rates. This means we are not even trying to pay back the national debt and are just printing free money for the banks and elite.
Apparently this isn't enough and the peasants have read the signs. Some people are trying to save money. This doesn't benefit the elite, so they need to fleece off of whatever you have in the bank
>>68062405
It essentially represents the reversal of a pseudofundamental belief, that interest pays cash over time - in the form of heavy leveraged derivative pools.
>>68062405
It's part of monetarist theory (which dominates monetary policy) but extremely low or negative rates can be counterintuitive and it have very clear drawbacks.
Negative rates function by costing depositors or certain credit buyers money for depositing or buying said credit. The Idea is that it will push most people to riskier investments but in reality it doesn't quite pan out like that because of certain regulations.
>>68066005
>do you have a rebuttal?
not really. Using your analogy, sometimes lowering your salary requirements does help finding a job, but other times, all it does is scare employers away.
I was just looking for some evidence from either side as to what the real effect of low/negative interest rates is.
Also, on a somewhat separate note, if the Fed (or any other central bank) is lowering interest rates as a result of a weaker economy, then how much power does the Fed actually have? All it seems to be doing is responding to the recession like every other bank.
Banks charge you interest for depositing money with them. It's to destroy consumer saving. The Fed thinks that money that isn't deposited will be spent when in reality people just stuff it under their mattress.
>>68062405
Isn't Switzerland the only country to have tried this?
The value of money decreases each year due to inflation, that encourages people to either invest or spend it now instead of keeping it under the mattress. It forces the velocity of money to increase.
Should the economic growth slow, and should the slush pool of money remain so large, the only way to increase more spending is to allow the value of money to decrease father.
The negative interest rate comes in.
Welcome to a world post-gold standard..
>>68067295
>>68064992
>>68064395
Is this trolling or are you guys retarded?
Negative interest rate refers to the reserve rate, it has fuck all to do with how much interest you get paid on deposits
>>68067680
this
>>68067295
that isnt going to do anyone any good though. soon ts going to be hundreds of dollars for a loaf of bread.
>>68067524
No.
>>68067524
Japan recently, I believe
>>68067812
Quite the contrary actually, negative interest rates are an attempt to curb inflation rates by allowing more money to be invested rather than held back.
negative interest rates is just one of the factors driving the move to cryptocurrencies like bitcoin and ethereum.
>>68067680
but the rates you get from the bank are a reflection of what the fed rate is.
For instance now the fed rate is zero, so no one gets any interest on their deposit and CDs pretty much don't exist.
You don't think the bank will pass the buck onto us?
Jew bankers can't keep the punch bowl filled any other way.
It's a sign.
>>68066979
>le goldbug meme
It couldn't be that gold hoarding Jews benefit from increasing demand for a mostly useless metal, could it?
>>68068210
Dude the lower the Fed Rate is, the higher the interest you get paid on CDs
http://www.foundationsforliving.org/articles/foundation/fedraiselower.html
>>68062405
>Why do some countries have NEGATIVE interest rates?
Because the banks control the government via their central bank(s).
Banks say central bank loan us money and pay us to borrow it. The banks control the central bank so it's approved.
Then the banks loan money to people at interest. Their by earning money both for borrowing it and for loaning it.
This is what you get when you have a private central bank, that the government can't control. Because Jews have never abused their position as lenders.
>>68068499
Oh, yeah, totally want to lock my money up in a CD that pays literally nothing, not even keeps up with the interest rate.
INVEST WITH US GOYIM WE'LL MAKE YOU RICH I TELL YOU RICH!
>>68062405
>Why do some countries have NEGATIVE interest rates?
You know why.
>>68068813
Is it because Sweden likes dick up the ass?
>>68067237
Less than we think, more than they're meant to.
What you're not being told by reactionaries is that these crisis' were caused for benevolent reasons, Bush started the housing bubble believing poorer Americans (which, in many areas, translates to black Americans) would pay off their mortgage and eventually sell as land value increases, giving poor people a boost in wealth and limiting wealth inequality. This is a trademark, republican we'll have our cake and eat it too kind of plan benefiting both the poorest and giving incentives for the rich, but it backfired because these same poor Americans viewed mortgage as renting without the hard requirement of paying your rent. History is repeating on student loans, but luckily you can't foreclose a degree, you can't force people to unlearn like you can force people out of their homes (and farms, 30 years earlier).
See, the american government caused this by trying to fix a problem that might actually be unfixable, there has to be losers in a competitive system. The FED aren't great, bailing out banks that were meant to fall was a bad idea, but I don't blame them for the continued problems caused by this recession, or the next
It was the governments idea that the FED went along with that naturally caused unemployment, but it was the Marxists reaction to blame white people despite economic condition and promote the idea of white privilege to HR that meant unemployment never recovered, especially amongst young workers who don't have the same protections as older, experienced, senior workers with +5 years of experience.
BTW if I ever see people claiming age discrimination is a thing I'll buy a flight trip and beat you myself. Senior unemployment is the only employment that's improved in the last 5 years.
>>68067680
Not retarded, just uneducated.
>>68068499
>what is a yield curve
Yeah, no. That would be an arbitrage opportunity.
Besides, your own link say the same thing.
>When the Fed RAISES
Interest Rates You Can "Expect" HIGHER CD rates
>When the Fed LOWERS
Interest Rates You Can "Expect" LOWER CD rates
>>68067680
http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp
Not surprised a Peurto Rican can't into finance
>>68068962
Fuck it I read it wrong
In either case "negative interest rate" is a red herring
Even if you're getting paid 3% interest on deposits, if inflation is 4% you're effectively being charged a negative interest rate even if nominally it's a positive rate
In either case, it still refers to the reserve rate, private banks can still offer positive interest rates while the reserve rate is negative
Hell the current reserve rate is 0.5%, doesn't mean you get paid .5% on your deposits or CDs, CD rates are currently double that
>>68068956
>Bush started the housing bubble
community reinvestment act, obummer was a lawyer working for ACORN drumming up niggers who had bad crdit to bring lawsuits against the banks for discriminatin
>>68069872
Why do you keep saying reserve rate? The reserve rate is not an INTEREST rate, nor will it ever be negative.
NIRP is a negative fed funds rate, meaning banks must pay to hold deposits with the fed, which means banks charge depositors money to deposit money.
>>68067524
Hell no. The European Central Bank is flip-flopping between negative and zero interest rates.
>>68070195
Wikipedia says it is an interest rate
>federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions
https://en.wikipedia.org/wiki/Federal_funds_rate
>>68070638
Reserve rate and fed fends rate are not the same. You have no idea what you're even talking about.
>>68062405
Jews siphon off your bank account.
>>68015943
The bank pay you to borrow money.
>>68069872
The thing you're missing is that the fed funds rate, in addition to its direct function, also serves as a benchmark rate. It's true that the deposit rate at a bank doesn't automatically equal the fed funds rate but the deposit rate tends to follow the direction of the fed funds rate and interest rates in general.
CD rates specifically depend on the deposit term. If it's a 5 year CD, it will most closely resemble the 5-year treasury note. In other words, CD's will follow the yield curve of the risk-free rate - the curvature and direction that is to say.
>>68068429
Pretty shit response tbf bro
>charging you money to keep it safe
>not adjusting bank accounts for inflation
this should be illegal
I'm not sure even they know how it works.
