02/25/2016 - The Hidden Agenda Of Davos 2016
“I think world leaders decided to dramatically escalate the War on Cash, making it easier for them to impose negative interest rates. Negative interest rates mean the lender pays the borrower for the privilege of lending him money. It’s a bizarre, upside-down concept. Negative rates could not exist in a free market. They can only exist in an Alice in Wonderland economy created by central bankers .. Think of it as ‘punishment interest.’ .. That’s a common term in Germany for negative interest rates .. Punishing savers is exactly what central bankers—who are really central economic planners—would like to do. They think stinging savers with negative interest rates will encourage them to spend now. It’s effectively a tax on saving money. Central planners just want you to spend money. Even if you have to go into debt to do it. Consumption based on fear of negative interest rates is somehow supposed to ‘stimulate’ the economy. However, their harebrained scheme is not working. Switzerland, Denmark and Sweden all have negative interest rates. But consumer spending is not being ‘stimulated’ in those countries. It’s totally (and predictably) backfiring on the central planners. And it’s easy to see why .. The War on Cash and negative interest rates are obvious signs of desperation. They are huge threats to your financial security. Central bankers are playing with fire and inviting a currency catastrophe, just like they have done so many times in the past.”
– Nick Giambruno
– Nick Giambruno
