Negative Rates Begin To Be Employed

  An explanation of why so many people don’t see runaway government spending and the massively accumulating national debt as any real problem or threat to the country’s stability. For a thinking person it is difficult to see how America’s almost 20 trillion dollars in national debt is going to have a good ending. Not to mention the endlessly accumulating debt at state and local levels. Yet lots of “rabbits” seem to believe it will all eventually be discharged / forgiven like credit card debt in a personal bankruptcy case. Perhaps they are not altogether wrong since the accumulated debt is already so big it will not be possible to ever pay it back in full. Nevertheless there will likely be some kind of “correction”, some extremely adverse consequences for our civilization in the near future.

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Think the world can’t get any more backward?

Central bankers around the world are pushing deeper into the once-unthinkable world of negative interest rates — essentially charging customers to hold their cash. Denmark set negative interest rates as early as 2012, followed by the ECB in 2014. Since then, they’ve been joined by Switzerland and Sweden. In Asia, the Bank of Japan announced a negative interest rate policy in January this year. Hungary became the first emerging market to experiment with negative rates, taking the plunge in March. With more of the world’s central banks joining in, and rates pushing further below zero,

In Denmark: Some mortgage holders are the envy of home owners around the world. With negative interest rates, they’re actually receiving interest payments from the banks they initially borrowed from.

In Switzerland: Few banks are dealing with negative interest rates by passing them on to their customers, but Alternative Bank Schweiz in Switzerland is bucking the trend, and charging clients to hold their deposits.

Imagine being paid money to take $200,000 from the bank and spend it. To a rabbit, this is wise economic policy.

When rabbits see a world of contracting resources, and they notice certain people hording resources for themselves, they naturally think the best strategy is to punish people for holding on to resources, and reward them for spending everything they have, and then borrowing more and putting it into the system too.

This is the byproduct of an instinctual perception which arises in the brain, when it is exposed to extended periods of free resource availability. The brain molds its entire perception of reality around those conditions it has observed. Suddenly, free resources and the pleasures their brains have observed are linked, like gravity and the inevitable fall one experiences when jumping off a high platform.

If the good times begin to stop, the problem is the change in psychology produced by the sudden lack of free resources, so the best strategy is to restore the free resources by whatever means possible, so the happy, spendthrift psychology will return, and so will the economic good times.

We know there are deeper natural laws at play which the rabbit hasn’t noticed. It is like a person thinking that just as a crashing plane hits the ground they will jump up, and then they will land on the ground softly and survive while everyone else dies. It isn’t going to work. But the rabbit can’t understand that. Their brain literally lacks the circuitry.

http://www.anonymousconservative.com/blog/negative-rates-begin-to-be-employed/