{"id":17399,"date":"2014-06-05T17:33:52","date_gmt":"2014-06-06T00:33:52","guid":{"rendered":"http:\/\/www.backwoodshome.com\/blogs\/ClaireWolfe\/?p=17399"},"modified":"2014-06-05T17:33:52","modified_gmt":"2014-06-06T00:33:52","slug":"so-what-exactly-do-negative-interest-rates-mean","status":"publish","type":"post","link":"https:\/\/www.clairewolfe.com\/blog\/2014\/06\/05\/so-what-exactly-do-negative-interest-rates-mean\/","title":{"rendered":"So what exactly do “negative interest rates” mean?"},"content":{"rendered":"

S answers that question in a message originally sent to the Infamous Mogambo Guru (IMG)<\/a>:<\/p>\n

\nI thought I must have misunderstood the radio announcer, but I checked the ECB webpage<\/a>.<\/p>\n

The banksters at the European Central Bank have set a negative interest rate on deposits. The rate was zero, as of June 11 is -0.1%. If a bank leaves money on deposit at the ECB, they will steal some of it every day. This is on top of what is stolen invisibly by creating ever more money; here they actually reduce the balance of the account.<\/p>\n

The intention is to force banks to lend their reserves rather than keeping them on deposit with the ECB. Since fractional-reserve bank lending creates money from nothing (this is on top of the new money created from nothing by the central bank) an increase in lending means even more rapid increases in the money supply. More money is available to bid against a shrinking supply of goods and services, causing even higher prices down the road.<\/p>\n

Which is exactly what these criminals are conspiring to do. They see a rapidly contracting economy (crippled in no small part by ruinous “green” energy legislation and pricing) with falling demand for goods and services. <\/p>\n

In a free market, falling demand causes downward pressure on prices, which is good for consumers. But anything that is good for consumers is bad for criminal banksters, as it interferes with the process of stealing from the poor and transferring wealth to the ultra-rich. So falling prices cannot be tolerated.<\/p>\n

Falling prices also means that debts are repaid in money that may be more valuable than when the loan was created. This is good for creditors and bad for debtors. Governments are the largest debtors in human history, and central banks are nothing more than instantiations of government violence, so the interests of debtors will always triumph at central banks.<\/p>\n

Consumers be damned. The ECB wants price inflation. Perhaps the precedent of setting negative interest rates will give it to them, good and hard.<\/p>\n

Gold jumped $8 an ounce within minutes of the news, and we’ll see where that goes.<\/p>\n

Which makes me so very happy that I took the Mogambo Guru’s advice and bought lots of lovely gold and silver coins back when they were so cheap even I could afford to buy them. Wheee! This investing stuff is easy!<\/p><\/blockquote>\n

Given where gold and silver have been lately, they could use quite a boost. Heck of a way to get one, though.<\/p>\n

I post this with the sneaking suspicion (nay, the hard-won knowledge) that the average reader of the Living Freedom blog wouldn’t care if all of Europe fell into a giant volcano crater or was sawed off the planet and transported away by aliens. But trust me, folks, when I say, “Coming soon to a neighborhood near you.” <\/p>\n

Well, maybe not soon. But inevitably.<\/p>\n","protected":false},"excerpt":{"rendered":"

S answers that question in a message originally sent to the Infamous Mogambo Guru (IMG): I thought I must have misunderstood the radio announcer, but I checked the ECB webpage. The banksters at the European Central Bank have set a negative interest rate on deposits. The rate was zero, as of June 11 is -0.1%. If a bank leaves money on deposit at the ECB, they will steal some of it every day. This is on top of what is stolen invisibly by creating ever more money; here they actually reduce the balance of the account. The intention is to…<\/p>\n

Continue readingSo what exactly do “negative interest rates” mean?<\/span><\/a><\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,20],"tags":[],"class_list":["post-17399","post","type-post","status-publish","format-standard","hentry","category-government","category-money","ratio-natural","entry"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/posts\/17399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/comments?post=17399"}],"version-history":[{"count":0,"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/posts\/17399\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/media?parent=17399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/categories?post=17399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.clairewolfe.com\/blog\/wp-json\/wp\/v2\/tags?post=17399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}