In this article, we deep dive into the financial contagion of negative interest rates, which have been proliferating worldwide and destroying the middle class while sustaining inefficient zombie corporations and governments. Simultaneously, in areas where negative interest rates are already a problem Europe and Japan for instance Bitcoin (BTC) is becoming an increasingly favorable way to save money for the long term.
Before the middle of 2014, negative interest rates were extremely uncommon, with little to no negative-yielding debt in the world. Then the Swedish Central Bank dropped its interest rate below zero and maintained negative interest rates for more than five years.
Notably, even though Sweden was the birthplace of the negative interest contagion, it raised interest rates back to zero in December in response to obvious negative impacts caused by the policy.
Following in Swedens footsteps, the European Central Bank dropped its interest rates below zero in mid-2014 and has since then pushed its interest rate as low as -0.5%, where it stands currently.
There is also a tremendous amount of negative-yielding debt in Japan, where the Central Bank interest rate has been negative since 2016. And the negative interest rate contagion is spreading to North America, with $200 billion of negative-yielding debt in the United States and Canada.
With interbank interest rates dropping below zero in Europe and Japan, the amount of global negative-yielding debt proliferated to as high as $17 trillion in August 2019. Since then, negative-yielding debt has leveled off to $11 trillion, but this is still a tremendous amount of money, equivalent to 75 times the Bitcoin (BTC) market cap.
The theory behind negative interest rates is that they force people to spend and invest instead of saving money. Central Banks theorized that this would increase economic activity and consumer spending.
However, the reality is far darker. Negative interest rates are destroying the middle class by giving people no option to save money for the long term. In areas with negative interest rates, like Europe or Japan, people who try to save money will watch as their savings are slowly burned up by the negative interest rate long term, and this adds to inflation.
Essentially, due to negative interest rates, people who save money in a bank in Europe and Japan not only lose purchasing power due to inflation, but the amount of currency they have is slowly eaten up as well.
On the flip side, banks and corporations literally get free money and are paid a fee just to take that free money. This ruins the free market system. Instead of inefficient corporations, banks, and governments having to change their policies and practices in order to be profitable, they can be total failures and subsist off free money and the fees they are paid to borrow that free money.
In other words, negative interest rates are creating zombie corporations that should be dead but are kept alive due to negative interest rates. This causes negative interest rates to spread the disease of inefficient and unprofitable corporations and banks.
Further, the cost of buying or renting a home is rapidly rising due to this situation since banks and corporations can buy as much real estate as they want, forcing out regular citizens who do not get free money for buying property.
The statistics from Sweden speak for themselves. During the five years of negative interest rates, real estate prices increased 50%, but household consumption and real wages have stagnated. This is creating a worsening situation for Swedish citizens, which is why the negative interest rate policy was finally ended.
Ultimately, negative interest rates are transferring wealth from regular citizens to banks, corporations, and governments. Essentially, regular citizens are penalized for trying to save in a negative interest rate regime while banks and corporations get paid to take free money.
Making it impossible to have savings creates a society where either people have tons of property and savings or none at all.
Standing on the sidelines is Bitcoin (BTC), which has become a favorable way to save money for European and Japanese citizens. Instead of money slowly burning away in a bank account due to negative interest rates, citizens can save their money in Bitcoin (BTC). And their Bitcoin (BTC) will never be taken away since Bitcoin (BTC) is decentralized.
Further, Bitcoin (BTC) has been gaining tremendous amounts of value long term, rising from pennies in 2010 to near $8,000 currently. Thus, people who choose to save in Bitcoin (BTC) can actually gain tremendous amounts of purchasing power while not worrying about their money being siphoned off by negative interest rates. Compare this to a German bank, for example, where fiat savings lose purchasing power long term due to inflation and money is siphoned away by the negative interest rate.
Although the United States Central Bank has not decided to push its interest rate below zero yet, there have been some rumors that it is being considered as a possibility. Indeed, President Trump has called for the Fed to drop interest rates below zero. If that happens, it could lead to a stampede of Americans choosing to save with Bitcoin (BTC) instead of with banks.
See the original post here:
Negative Interest Rates Are Destroying the Middle Class and Sustaining Zombie Corporations, in Europe and Japan Bitcoin Is a Better Option Than Banks...
- Zombie 2nd mortgages are coming to life, threatening thousands of Americans' homes - WFAE - May 20th, 2024
- Spam, junk slop? The latest wave of AI behind the zombie internet - The Guardian - May 20th, 2024
- 'Zombie cells' in the sea: Viruses keep the most common marine bacteria in check - Phys.org - May 20th, 2024
- 'Zombie Driver' Prompts Wild Police Chase From Venice Onto 405 that Ends in Crash - Los Angeles Magazine - May 20th, 2024
- What are zombie fires, and why are they becoming more common? - KXAN.com - May 20th, 2024
- "Zombie" Wildfires Force Thousands To Evacuate In Western Canada - DOGOnews - May 20th, 2024
- What exactly are 'zombie' fires, and how are they affecting wildfires this spring? - CBC News - May 20th, 2024
- The Case of the Zombie Ninjas - East County Magazine - May 20th, 2024
- Zombie' fires partially to blame for spring Canadian wildfires - NBC Connecticut - May 20th, 2024
- What are 'zombie fires'? - Fox Weather - May 20th, 2024
- Kill the zombie Space National Guard idea - Defense One - May 20th, 2024
- AIs Flirty Upgrade, Facebooks Zombie Internet, and Why We May Be Doing Mental Health Wrong - Crooked - May 20th, 2024
- What are zombie fires, and why are they becoming more common? - KTVI Fox 2 St. Louis - May 20th, 2024
- Zombie Cicadas taking over the trees... and your plate? - Gray DC - May 20th, 2024
- Canada's "zombie" wildfires threaten towns, send smoke into U.S. - Axios - May 20th, 2024
- 10 Best Zombie Movies of the 21st Century, Ranked - Collider - May 20th, 2024
- Zombie cicadas are taking over the trees... and your kitchen! - Gray DC - May 20th, 2024
- 'Zombie' entrepreneurs who can't afford to close down is on the rise in S.Korea - - May 20th, 2024
- The 10 best zombie games to play in 2024 - TechRadar - May 20th, 2024
- 'Zombie' house flippers discover the grisly past of Florida home - ABC Action News Tampa Bay - May 20th, 2024
- Resident Evil collides with Battlefield in this WW1 zombie horror - GAMINGbible - May 20th, 2024
- What is a zombie fire? | Latest Weather Clips - Fox Weather - May 20th, 2024
- What are 'zombie' fires, and why are they becoming more common? - MSN - May 20th, 2024
- Transformers' New Zombie Autobot Is a Sick Way to Treat the Hero Who Relaunched the Franchise - Screen Rant - May 20th, 2024
- #Showbiz: A clutch of zombie movies with bite - New Straits Times - May 20th, 2024
- 'Zombie' wildfires resurface in Canada, worsening US air quality - The Times of India - May 20th, 2024
- The Last of Us Season 2 First Look: Pedro Pascal and Bella Ramsey Return to Face the Zombie Apocalypse - Variety - May 20th, 2024
- On its 15th anniversary, Killing Floor stands as one of the best zombie shooters and the timing couldn't be more ... - VG247 - May 20th, 2024
- The HANDLING THE UNDEAD Trailer Imagines A Different Kind Of Zombie Movie - FANGORIA - May 9th, 2024
- Museum in Germany Finds Skeleton That May Have Been Considered a Zombie - Atlas Obscura - May 9th, 2024
- The Dead Don't Die Brilliantly References Bill Murray's Other Zombie Movie With 89% On RT - Screen Rant - May 9th, 2024
- Austin Butler's 2019 Zombie Movie Marked The End Of A Concerning RT Trend - Screen Rant - May 9th, 2024
- 'Quality and Diversity': From Zombie Apocalypse to 'Vengeful Quinceaera,' Blood Window Showcase Presents Six ... - AOL - May 9th, 2024
- Zombie Trainers and a New Era of Forced Labor - Newsweek - May 9th, 2024
- I Started A Zombie Outbreak In Undead Inc And I Regret Nothing - TheGamer - May 9th, 2024
- How to watch the Night of the Living Dead and all of George Romero's zombie movies - Popverse - May 9th, 2024
- The Cranberries' Zombie - the story behind the incendiary song - Louder - April 22nd, 2024
- Chris Riddell on the zombie Tory government falling apart at the seams cartoon - The Guardian - April 22nd, 2024
- Zombie grave dating back 4,200 years discovered in Germany, photos show - Miami Herald - April 22nd, 2024
- Steam zombie survival game leaves early access 11 years on, and you've got one week to get it cheap - PCGamesN - April 22nd, 2024
- "Zombie" cicadas with STDs are coming to Virginia - Axios - April 22nd, 2024
- Deathtroopers is the Star Wars zombie horror game I never knew I needed - PC Gamer - April 22nd, 2024
- Zombie Army VR Reveals The Story In Latest Trailer - Bleeding Cool News - April 22nd, 2024
- Where Infected "Zombie Cicadas" In The US Will Emerge In 2024 - TheTravel - April 22nd, 2024
- Zombie anti-abortion laws are menacing American women - The Hill - April 22nd, 2024
- Joe Manganiello to Zombie It Up in Mountain Man Adaptation - Reactor - Reactor - April 22nd, 2024
- Frozen Soul Covered White Zombie and It Rules - MetalSucks - April 22nd, 2024
- Arizona's abortion ban could bring zombie laws back to life in other states - Fast Company - April 22nd, 2024
- Arizona abortion ban shows the dangers of reviving zombie laws - MSNBC - April 22nd, 2024
- Zombie fires smoldering near Canadian oil and gas wells threaten production following 2023 wildfires - WorldOil - April 22nd, 2024
- You'll Never Guess Who Doesn't Want to Repeal a Zombie Abortion Ban - The New Republic - April 22nd, 2024
- Zombie Army VR: New trailer gives a glimpse of the gruesome campaign - MIXED Reality News - April 22nd, 2024
- Zombie Tests: Is the SAT Back From the Dead? - Fair Observer - April 22nd, 2024
- How likely are you to survive a zombie apocalypse in Connecticut? You may want to travel north - Hartford Courant - April 22nd, 2024
- Missouri Reports 162 New Cases Of Deer 'Zombie' Disease In 2023 - Lake Expo - April 22nd, 2024
- Zombie Fires Pose Looming Threat to Canada's Oil and Gas Infrastructure - OilPrice.com - April 22nd, 2024
- Rob Zombie Presenting House on Haunted Hill Soundtrack on Vinyl - ComicBook.com - April 22nd, 2024
- Take on Zombie Stormtroopers In This Star Wars Fan Game - IGN - April 22nd, 2024
- The Best Zombie Game of 2023 Has a New Expansion Out Now - Esports.net News - April 22nd, 2024
- Frozen Soul Debuts Frosty Rendition of White Zombie's 'Creature of the - Knotfest - April 22nd, 2024
- 'Dawn of the Dead' at 45: A Zombie Love Affair That Never Died - The New York Times - April 12th, 2024
- Hyper-sexual 'zombie cicadas' infected with bizarre STD fungus will emerge in US - New York Post - April 12th, 2024
- Zombie malls and other retail centers getting extreme makeovers to keep up with the times - Chicago Tribune - April 12th, 2024
- 'Zombie' drug xylazine found in cannabis THC vapes in UK - BBC.com - April 12th, 2024
- Taxing health insurance: The Republican zombie that refuses to die - Roll Call - April 12th, 2024
- Fungus-infected Zombie Cicadas with hypersexuality to emerge in the US this year: Expert - Hindustan Times - April 12th, 2024
- Zombie Classic Dawn Of The Dead Coming Back to Theaters for 45th Anniversary - MetalSucks - April 12th, 2024
- E-News | 'Zombie cicadas' infected with sexually transmitted fungus expected to emerge this year in parts of US - WVU ENews - April 12th, 2024
- Deadly Zombie Sedative Penetrating The U.K.s Illicit Drugs Market - Forbes - April 12th, 2024
- Seattle Police warn that base ingredient in 'zombie drug' tranq is being sold as standalone pill - FOX 13 Seattle - April 12th, 2024
- Opinion | Today's Opinions: Haunted by zombie law and thrown into abortion time-travel - The Washington Post - The Washington Post - April 12th, 2024
- Rob Zombie Teases 'House of 1000 Corpses' Book With Rare Photos, Original Script and More! - Bloody Disgusting - April 12th, 2024
- Zombie malls getting extreme makeovers to keep up with the times - Detroit News - April 12th, 2024
- 2000s Horror Fantasy Is One Of The Most Unique Takes On The Zombie Genre - Giant Freakin Robot - April 12th, 2024
- Mysterious 'Zombie Neurons' Unlock Secrets of Learning in The Brain - ScienceAlert - April 12th, 2024
- Zombie SKUs: What They Are, How They Work & Results - JumpFly PPC Advertising News - April 12th, 2024
- Arizona Reviving Its Zombie Abortion Ban Is Trump's Doing - The Cut - April 12th, 2024
- Hyper-sexual "zombie cicadas" that are infected with sexually transmitted fungus expected to emerge this year - CBS News - April 12th, 2024
- Should we be concerned about zombie cicadas? - WGN Radio - Chicago - April 12th, 2024
- You need to play this underrated zombie shooter before it leaves Xbox Game Pass - Digital Trends - April 12th, 2024
Reviewed and Recommended by Erik Baquero