Negative Interest Rates #NIRP do more harm to #Centralbanks than they do good
Times are changing with hard cash to online digital payments
The world has been forced to adapt to new methods of online payment like #Debitcards , #creditcard and #mobilewallet payments
Times are changing with hard cash to online digital payments
The world has been forced to adapt to new methods of online payment like #Debitcards , #creditcard and #mobilewallet payments
Few use cash and the global elites are using negative interest rates to do the same thing as inflation make money disappear
The U.S. discontinued the use of large-denomination bills in the late 1960s. Until 1969, $500, $1,000, $5,000 and even $10,000 bills were issued and today
The U.S. discontinued the use of large-denomination bills in the late 1960s. Until 1969, $500, $1,000, $5,000 and even $10,000 bills were issued and today
the largest bill is a $100 bill, but it has lost 80% of its purchasing power since 1968
Europe has ended the 500 euro note and today the largest note in euros is 200 euros. Existing 500 euro notes will still be legal tender, but new ones will not be produced.
Europe has ended the 500 euro note and today the largest note in euros is 200 euros. Existing 500 euro notes will still be legal tender, but new ones will not be produced.
This means that over time, the notes will be in short supply and individuals in need of large denominations may actually bid up the price above face value paying , The whole idea of the war on cash is to force savers into digital bank accounts so their money can be taken from
them in the form of negative interest rates.
Negative interest rates (NIRP) are a thinly disguised tax on savers. The traditional way of stealing money from savers is with inflation
When negative rates are imposed, savers don’t save less; they save more in order to make up
Negative interest rates (NIRP) are a thinly disguised tax on savers. The traditional way of stealing money from savers is with inflation
When negative rates are imposed, savers don’t save less; they save more in order to make up
the difference and still meet their goals.
Instead of inducing savers to save less and spend more, NIRP causes savers to save more and spend less.
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Instead of inducing savers to save less and spend more, NIRP causes savers to save more and spend less.
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The serious consequences of the negative interest rates (NIRP)
1. High costs for the banks
2. Negative interest rates curtail profit
A) Negative interest rates result in a direct decline in interest margins, and therefore in a decrease in profitability
1. High costs for the banks
2. Negative interest rates curtail profit
A) Negative interest rates result in a direct decline in interest margins, and therefore in a decrease in profitability
B) Competition between the banks and the option for clients to hold liquidity in cash do not allow for the negative interest rates to be passed on to individual clients.
C) Due to the significantly more negative interest rate environment, the costs for interest rate hedging in
C) Due to the significantly more negative interest rate environment, the costs for interest rate hedging in
particular have risen. In some cases this has resulted in interest rate increases for mortgages and loans. As a result of cost savings on hedging transactions, banks have to accept high interest rate risks.
3. The new reality of negative interest rates on risk-free investments is also creating uncertainty in the markets,
4. The prevailing scarcity of investment opportunities for institutional investors is further exacerbated and opportunities are being searched in risk assets
4. The prevailing scarcity of investment opportunities for institutional investors is further exacerbated and opportunities are being searched in risk assets
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