Imagine this: this guy you do not know wants to borrow a thousand bucks from you so he can start work on some crackpot invention. Sure, you say, he does seem awful confident it will work and he is fronting most of it with his own money.
You ARE risking the possibility that this total stranger’s invention might still flop because nobody needs exploding lemons… and you’ll just be a thousand poorer… so he should give you some part of the profits he makes from it if it does succeed, be it a percentage cut of his total profits or a fixed percent of the amount you’re giving him.
The stranger turns to you with a gleam in his eye, and tells you that he will be borrowing from you while paying NOTHING back to you. Worse, he will be REDUCING the value of the money you’ve given him as time progresses… Until eventually there is nothing left.
You slap the mother f***er and get on with your life.
Unfortunately, to some extent that is how the current banking system has worked in recent years… and it’s only getting worse.
Banks already profit by making interest-bearing loans with your money, while giving you practically zero interest. In fact, some banks even charge you for keeping money with them for “account servicing” or some other bullsh** reason…
And zero percent was as low as they could go, or else you’d slap them, insult their parents, and withdraw all your money- collapsing their entire hyper-leveraged (they lend out several times the value of the original deposit via fractional reserve banking; basically when a deposit is made, it gets loaned out and then returns again as another deposit once the loaned money is earned by the next patsy- I mean depositor- who puts it back into the bank, perpetuating the cycle) institution in the process.
That was why they had to use this thing called “inflation”(money printing) to slowly reduce the money’s value even IF you withdraw it. Thing is, people don’t like that much either.
Well, the time has come for even WORSE tidings… as we proceed ever closer to that cashless super-convenient “Utopian” society… as many of us had long predicted, the talking heads of the propaganda press and their banker backers are talking about implementing NEGATIVE interest rates.
THAT’S RIGHT, the money-printing, debt-printing QE infinity Zero Percent Interest rates was SO effective at bringing us record-LOW wage growth, STAGNANT median wages, record-LOW participation rates, wealth inequality the HIGHEST in NINETY years and the FEWEST EVER recorded number of home owners below the age of 35… that they are talking about STEALING YOUR MONEY DIRECTLY now.
The Telegraph: Negative interest rates could be necessary to protect UK economy, says Bank of England chief economist
Andy Haldane argues for raising UK’s inflation target in bid to give policymakers more ‘wiggle room’ in fighting downturns – and suggests cash could need to be abolished
This comes on the heels of the ECB ALREADY charging negative rates.
Two questions come to mind. First, how much f***ing wiggle room do you guys need?? Should I just pass all my money directly to “policy makers” from now on, so THEY can gamble with it (by investing in a private mansion for themselves?)?? We’ve ALREADY seen how “effective” their stewardship has been so far.
Second, every one of us “conspiracy theorists” had looong predicted that policy makers’ ONLY solution to a debt crisis is simply to borrow MORE DEBT… or to steal your money… or to print money to pay off the old stuff AND the interest that came with it. Because to do otherwise would collapse the system. Then they pass the mess on to the next president/ head of state and hope it blows up while HE is in charge. This “recovery” is looking more and more like a game of hot potato with an exploding lemon.
Suppose it doesn’t explode though? THAT would be a politicians’ dream, because INSTEAD, we have a frog (you) slowly getting boiled to death instead. Suppose people just grin and bear the debt load… like how the Japanese have, being the nation with the highest debt to GDP ratio (Zimbabwe comes in second) AND the highest TOTAL debt( Greece comes in second):
Look how HAPPY he looks with his screen filled with VIRTUAL happiness. I’m sure his VIRTUAL mansion and VIRTUAL girlfriend and VIRTUAL dog and VIRTUAL food are satisfying his every desire… so that he can one day fulfill his dreams (just like hundreds… no, TWENTY THOUSAND others PER YEAR) by committing Karōshi, that honorable death from overwork and starvation. I believe the Samurai Code of BullS-hitō has something to do with that.
The 0.1% of Japanese society will consume his production and the resources he has forgone while honoring his contribution… by laughing and pointing. Any wonder Japanese population is declining?
Personally, that lifestyle isn’t for me… So f*** VIRTUAL money, I want to be a REAL boy.
With REAL assets and an economy that grows in REAL terms.
Sources: Mises Institute Wiki, The Telegraph, Zero Hedge ETC ETC ETC
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