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BOJ LET OUT THE GENIE OF NEGATIVE INTEREST RATES, AND MONEY BECAME OBSOLETE. [Copy link] 中文

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Post time 2016-2-10 17:52:15 |Display all floors
This post was edited by abramicus at 2016-2-10 18:05

What is a negative interest rate?  It is like a negative weight, negative length, or negative existence.  For money, the expectation of future returns in the form of dividends or interest payments form the basis of its present value.  Plug in a negative interest rate into any formula of Present Value, and it explodes.  Conversely, the future value (par value of a bond) becomes so small that nobody in his right mind would extend credit to anyone else.  The bankers have played around with their magic for too long, they have come to regard all financial variables and constants as fair target for their manipulation.  

A negative interest rate, however, is the apple in the Garden of Eden that no one is suipposed to eat of.

Having taken a bite of this apple, the knowledge that modern currencies have no real value has become a mathematical certainty, and therefore, the Garden of Eden that modern finance has created, out of the myth of the riskless rate of return, vanishes, when that riskless rate became impossible.  The future value of bonds on which the value of fiat money is based approaches zero.


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Post time 2016-2-12 15:23:43 |Display all floors
Negative interest rate will not only spur inflation, it will cause all assets to inflate, widening the wealth gap between the rich and the poor, and leading the poor into a state of desperate but impotent want for all their necessities that their wages cannot afford to buy.  In short, look to the end of the Second Meiji Restoration in short order.

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Post time 2016-2-12 20:57:53 |Display all floors
Negative interest rates can make the yen go up.......

The more negative the more people wants the yen?


That's interesting.

I've made my living, Mr. Thompson, in large part as a gambler. Some days I make twenty bets, some days I make none. There are weeks, sometimes months, in fact, when I don't make any bet at all because ...

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Post time 2016-2-13 12:48:06 |Display all floors
Revolutionar Post time: 2016-2-12 20:57
Negative interest rates can make the yen go up.......

The more negative the more people wants the y ...

Currencies are manipulated.  The Japanese Yen depreciated against the dollar right after the announcement of Kuroda that the Bank of Japan will impose a -0.1% interest rate on the commercial banks which add new "excess reserves", which does not apply to existing "excess reserves" or the basic "required reserves".  In this sense, the BOJ is telling all those who earned new money to spend them right away.  Kuroda hoped to increase Japan's GDP by forcing all Japanese to stop saving.  But, in the process, he in effect is robbing their savings by introducing a penalty (negative interest rate) on it.  

The simplest way to understand this is that the boss of a store that is unable to sell his inventory has declared that his employees must spend every Yen they earn in their paychecks, in buying his merchandise, and in addition, extracts a penalty on their savings if they refuse to use them as well to buy his store's merchandise.  

Kuroda is like the trustee of their savings and retirement funds.  His obligation is to the savers and retirees, but he turned around, and put the boss above the employees, ignoring his duty to the savers that should have trumped his duty to his boss, because theoretically, his boss, the Japanese government, should have been the elected servants of the people.  But, this is just another proof that these governments that impose negative interest rates have their loyalties inverted, and by negating the very authority used to establish their existence, have put their continued enjoyment of the public trust at peril.  When the public refuses to accept their authority, chaos will ensue.

The Yen rose because other countries have their own crises, of greater import, forcing their savers to end up buying Japanese Yen.  Drowning men are known to grasp at straws - exactly as is now happening.

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Post time 2016-2-23 09:22:05 |Display all floors
abramicus Post time: 2016-2-13 12:48
Currencies are manipulated.  The Japanese Yen depreciated against the dollar right after the annou ...

Negative interest rate are just  another financial scam propagated by the evil superelite christian warmongers to cheat on the hard earned savings of middle class retirees.  It can only happen when the country is run by OLIGARCHS and have too many business regulations to comply and does not practice free trade.   The American finance and banking industry is monopoly by an exclusive club owned by the superelite christian warmongers.  

China can easily cash out her more than 1.5 trillion US dollar treasury bond holdings and set up a finance company in US to give interest rate of 3% to americans savers.  But US regulators will not give such banking license to China.  BANKING AND FINANCE IS THE MONOPOLY BUSINESS BY THE SUPERELITE  IN THE US.

american freedom of speech and freedom to do business is a BIG LIE

LIN BIAO IS THE TRUE CHINA HERO     

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Post time 2016-2-23 12:40:52 |Display all floors
Negative interest rates means that the people who earned their money cannot even save them for future use.  First, it was that money can be paper with a mere printed mark.  Next, it was that these papers may not be saved without paying an interest penalty.  Finally, they will not be allowed to be exchanged for anything without a sales tax.  

When you have a generation of millennials who cannot add or subtract without a calculator, and who know only how to fight battles in video games, and have no friends except those they meet in cyberspace but do not have to see in person, you have totally isolated every person and made him completely helpless.  When the Internet goes down, the millennials do not know how to organize themselves into a democracy to defend their rights and secure their futures.  As Benjamin Franklin observed, if they cannot hang together, then surely they shall hang separately.  This is the gravest threat of social communications based on electronic devices and software.

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Post time 2016-2-23 20:44:18 |Display all floors
Negative interest rates can happen in Japan, because Japan are consist of ZOOMBIES workers, who have guaranteed life time employment.  Retrenchment during poor economic times are not encouraged in Japan.  Most Japanese companies in Nikkei are zoombies companies whose financial status are mostly in red, if not for the creative financial accounting used to hide loses and subsidies provided by government. US government have also supported some Japanese zoombies companies by allowing Japan to print yen unlimited to give to Wall Street bankster to do YEN CARRY TRADE , make huge profit in global currency markets.   

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