Wednesday, September 4, 2019

Negative Rates - The Central Banks boxing themselves in







Negative interest rates are for two reasons, one obvious the other a large, systemic and hidden reason. Negative rates hide the fact that debt markets and collateral models no longer work, this is obvious. The hidden reason coordinated between central banks is to support to Eurodollar swap system. Without a large rate differential this US Dollar recycling mechanism would stop working entirely. If that were to happen all fiat currencies would fail, a catastrophic cascading collapse never seen before. Low interest rates, zero interest rates, negative interest rates all from the Banksters. These rates have destroyed the middle class in America. It's like buying a house and suddenly realizing the payment is $300 more per month than you gross. This is what the FED is doing to this country. Evil minions, no less. Negative Rates means Credit Freeze , Monetary Contraction , Economic Collapse , Depression and finally Monetary Reset . Negative rates or low rates in general don't do what they are expected because banks stop lending as its not advantageous to them. In the process savers lose all interest on their money which reduces spending. We have never been here before. A world drowning in debt ,global debt now surpassing global GDP . Most sovereign debt with negative interest rates. Central banker believing it is their god given right to upset the natural business cycle and to avoid a recession at all costs. The FED being outed as a partisan hack organization. Bubbles in nearly everything – especially stocks and housing. So precious metals become the only obvious solution to preserve purchasing power. “Gold does well when confidence in central banks fails” Negative interest rates are impossible without central banks forcing them down our throats. The banks now want to charge us interest to borrow AND LEND! Are you a creditor or debtor? Doesn't matter, you will pay banks either way. Just the way they want it. Here, how about just go back to sound money backed by gold. But no, can't have that , that would make too much sense, and wouldn't allow the parasites to fleece/rob everyone else as easily. NEGATIVE INTEREST IS a TAX AKA THEFT. LIKE Modern Monetary Theory IT’S NOT THEORY IT’S THEFT. PRINT MORE PAPER . RESULT , YOUR PAPER IS WORTH LESS SOON TO BE WORTHLESS.THEFT. Banks don't led your deposits. They lend against your deposits. Been said by many central bankers, banks extend credit, then look for the reserves. Capital requirements are what constrains them. Which is why mark to market had to go bye bye. The fractional reserve banking system cannot operate properly in this environment. maybe there is a silver lining to the Negative Interest Rate Policy cloud. Who would have dreamed that the biggest advocates of fractional-reserve banking - the central bankers - would back themselves into a corner such that they would effectively destroy the banking system they so love? Bring on full-reserve banking. A "negative interest rate" can be as subtle as banks raising fees on savers. How many savers will be up in arms? The debt ponzi demands you make your dutiful sacrifice for the greater good! The central planners are boxing themselves in. It’s the coffin corner for a Central Bank . The only reason to the debt instruments is for the reserves on fractional reserve banking. If they’re negative, the only way you’re not over leveraging yourself over time is to offload the debt instrument to someone else. That works until you run out of buyers. Then the buyer of last resort has to step in to prevent the system from collapsing. The negative interest rate is actually not the Central Banks doing. They’re not pushing rates negative. They’re going negative because the market is front running Central Banks. They know they have to buy. This is capitalism about to crush the central banks by calling the bluff.










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