Thursday, February 11, 2016
Negative Interest Rates: Form Of Slavery
European Central Bank And Japan's Central Bank have a policy of negative interest rates.Federal Chair Janet Yellen spoke before Congress yesterday. She answered a question that the Fed is studying the legality and implementation of negative interest rates in the U.S. Negative interest rates as the name suggests are rates of interest charged to member bank or banks charge their customers who have money on deposit.It's the last resort. It's akin to the Fed or the bank forcing some one to take out a loan. It's form of indenture-making one a slave till his bill/loan is paid. The customer can avoid negative interest rate accrual by preemptively buying something in the hopes of a positive return either by way of investment or life style adventure.Credit worthiness of the prospective borrower may be over looked to avoid a sure loss with neg rates.In short our government and its agencies view the citizens as worthless unless they are in debt indentured servant. Debt takes the form of borrowed money for investment or travel or buying consumer goods etc. Debt is also the sine qua non that governments necessarily need to exist. Addicting people or corporations to services guarantees government and the politicians jobs at the nexus of huge money flows.And we all know how much that can benefit lobbyists, politicians and bureaucracy.Central governments all become common highway robbers near the end of their lives.