The Crazy World of Negative Interest Rates

There are a few countries around the world where interest rates are so low, they’re negative. Japan, Germany, Denmark, even the European Central Bank itself have moved rates into negative territory in recent years. Savers in Europe are having to pay to store their wealth. “Negative interest rates as a concept is really something that makes your head spin, Rate are only negative cause they’re messing around in our markets . Are negative interest rates an artificial phenomenon that central bank technocrats have foisted on the world? Or can interest rates naturally turn negative, of their own accord . This is an increasingly relevant question. Even the German 30-year bond rate recently went negative , hitting -0.006%. Why would anyone want to buy a 30-year German bond that yields -0.006%? Combined with expected inflation of 1.7% per year, that’s a dismal -1.706% real return! Welcome to The Atlantis Report . Historically, negative real returns on stores of value were the norm. Before financial systems existed, almost all investments had negative returns if you didn’t put work and energy into them. To store value, you had to accumulate stuff, buildings or land. Most options either had high maintenance costs, were subject to risk of damage from natural causes and theft, were very volatile or required hard labour to get production out of. The corollary of all this is that central bank created fiat assets can, even at 0% interest, have returns above what private markets marginal asset can return (on a risk adjusted, liquidity adjusted basis). When they do this (like the ECB is currently doing) it puts a gridlock in the private asset market, creates an indirect massive economy wide subsidy on job destruction and on pulling resources out of the real economy and generates an untold amount of suffering. Who would invest in private assets when you can get government paper with above market returns. The only winners in the ECB situation is countries such as Russia and China who are emboldened by the west's economic weakening. In the regions that trade in euros, everybody loses. The rich lose, the poor lose even more. It's all so sad... And guess who is buying the negative yielding bonds. Oh yeah, it's central banks. Without the environment created by the central banks, you wouldn't get to this loop. Central banks buy each other's debt all day and night. It would be interesting to see prior to the fed (1913)if this happened. Gold and silver very deflationary. This nonsense can only occur from a fractional, fiat, Ponzi, central banking scheme. Temporarily suspended the redemption in gold, is almost exactly 48 years ago. Only in a system where a few lend money they created out of thin air at interest, or simply type digits onto a screen, do these money changers enslave all of humanity, as mankind fights for democracy, and what can be given for free. Yes, the central bankers are rotten. So don't use there currency, let's move on without them. They offer no real skills anyways.









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