Negative interest rates are yet another scam that banks use to steal your money. With negative interest rates you must pay the banks a lot more for the privilege of giving them your money.
Negative interest rates were introduced by the European Central Bank in 2014. The scam has also been instituted by the central banks of Japan, Sweden, Denmark and Switzerland.
Last month, Fed Chair Janet Yellen told Congress that she was thinking about foisting the theft on Americans.
People try to avoid this scam by withdrawing their savings from banks in large denomination bills. In Switzerland, for example, demand for the 1,000 franc bill (about $1,000) has increased sharply. These large denomination bills now account for 60% of the Swiss currency in circulation.
To keep people trapped, neoliberal economists such as Larry Summers say that banks must eliminate large denomination bank notes. This will make it difficult for people to keep their cash outside of banks.
Other neoliberal economists, such as Kenneth Rogoff, want to eliminate cash altogether, and have only electronic money, so that no one (except the rich) can avoid being ripped off by the banks. Electronic money cannot be removed from bank deposits except by spending it.
The excuse for this theft is that average people are supposedly very wealthy, and the reason why the economy remains depressed is that average people keep their vast wealth in banks, rather than spend it. According to this lie, by stealing their money, the banks will give their customers an incentive to spend it. This despite the Federal Reserve’s own report that 52% of Americans cannot raise $400 without selling personal possessions, or borrowing the money.
Therefore, in order to “boost the economy,” the bankers will force you to take on more debt, which will further depress the economy. Eventually you will have to borrow money just for the privilege of putting money in a bank.
If you do not have enough money in your account to pay negative interest, plus services fees, and other scams, you will be charged an overdraft fee, which in most U.S. banks is $75.00. And this fee will compound.
As always, the bankers say they want to “help you” (by stealing from you). Increasingly you will hear them say that unless they are allowed to steal from you, the entire financial system will crash, and the world will end.
Of course, you could draw out your money and deposit it in a foreign bank, but there will be laws against that (unless you are rich).
Here is Forbes…
Negative interest rates have become central bankers’ latest weapon of choice, as they have run out of traditional tools such as quantitative easing and bond buybacks, to tackle tepid growth and low inflation.
Nonsense. Monetary policy (i.e. banks playing with interest rates) does little or nothing to stimulate the real economy. What’s needed is an expansive fiscal policy (i.e. more government spending).
Everyone knows this, but everyone pretends that monetary policy is “stimulative.” It is indeed stimulative for the financial economy, but it does nothing for the real economy.
Thus, negative interest rates are simply theft. Average people live from paycheck to paycheck, and now the banks want to steal more from them.
Rather than stimulate growth and inflation, negative rates are a sign to markets that central banks have nothing left to throw at the problem of weak demand.
Right. To stimulate growth, we need more government spending. But we can’t have that, since the U.S. government is “bankrupt.”