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...
- '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
- End the 'zombie' Comstock Act - Star Tribune - April 12th, 2024
- OPINION - Flesh-eating zombie narcotics are on our streets Britain is badly losing its war on drugs - Yahoo News UK - April 12th, 2024
- What Is Xylazine - The Flesh-Eating 'Zombie' Drug Linked To 11 Deaths in The UK? - Times Now - April 12th, 2024
- Zombie Cicadas To Emerge In Virginia: What To Know - Patch - April 12th, 2024
- What Is "Zombie Drug" Gripping The UK? - NDTV - April 12th, 2024
- OJ Simpson's Final Film Will Resurrect His Naked Gun Character - As A Zombie? - Looper - April 12th, 2024
- Flesh-eating 'zombie drug' sweeping US is linked to 11 UK deaths - The Telegraph - April 12th, 2024
- Flesh-rotting 'Zombie drug' tranq raises alarm in UK - The Times of India - April 12th, 2024
- Zombie Cicadas To Emerge In GA: What To Know - Patch - April 12th, 2024
- What was the first-ever zombie movie? - Far Out Magazine - April 12th, 2024
- Even Will Smith Couldnt Save Zombie Survival Game Undawn, Which Flopped Spectacularly - IGN - March 24th, 2024
- Rob Zombie Recommends This Surprisingly Wholesome Comedy - Dread Central - March 24th, 2024
- Army Writing and the Zombie (Noun) Apocalypse - Modern War Institute - United States Military Academy West Point - March 24th, 2024
- Fatal Fury's Mai Shiranui Is In This Zombie Survival Game For Some Reason - Time Extension - March 24th, 2024
- Should you be worried about 'zombie deer'? | College of Public Health - George Mason University - March 24th, 2024
- 'Scooby-Doo on Zombie Island' Scares Its Way to Blu-ray for the First Time This Spring - Collider - March 24th, 2024
- Rob Zombie hates my guts: GWAR's Dave 'Oderus Urungus' Brockie was a genius, and here's an interview that proves it - Louder - March 24th, 2024
- In the fight against gun violence, Rep. Frost Introduces the Destroy Zombie Guns Act - The Apopka Voice - March 24th, 2024
- Elfriede Jelinek's 'The Children of the Dead' is a historical zombie novel - The Washington Post - The Washington Post - March 24th, 2024
- Germany's Zombie Government Is Fueling the Far Right - The Atlantic - March 24th, 2024
- Zombie Survival Game Undawn Has Crashed And Burned According To A Reuters Report - MMOs.com - March 24th, 2024
- Will Smiths Zombie Game Has Been Hit Harder Than Chris Rock at the Oscars Its Astronomical Budget Was ... - imdb - March 24th, 2024
- Scooby-Doo On Zombie Island / Return to Zombie Island Blu-ray (Warner Archive Collection) - Blu-ray.com - March 24th, 2024
- Registration almost here for Dothans annual Zombie 5K Chase - WDHN - March 24th, 2024
- Zombie magic and gambling club Magic Island will come alive again this summer - Houston Chronicle - March 24th, 2024
- Undawn | The $140m zombie survival game starring Will Smith that bombed while nobody was looking - Filmstories - March 24th, 2024
- After 4 years, a cult classic zombie horror manga from Ga-Rei's creator is finally getting an official English release - Gamesradar - March 24th, 2024
- Will Smith's Zombie Game Has Been Hit Harder Than Chris Rock at the Oscars - Its Astronomical Budget Was ... - FandomWire - March 24th, 2024
- "The game literally no one knew existed": The Will Smith Zombie Survival Game is Reportedly a Big Flop and Fans Are ... - FandomWire - March 24th, 2024
- Zombie-palooza --- Get to the biggest undead music event in the latest Dead Island 2 expansion: SoLA - Gaming Trend - March 24th, 2024
- Bournemouth University medical students treat 'zombie attack' in mass training simulation - The Tab - March 24th, 2024
- Zombie car factories on the rise in China as buyers opt for EVs - Financial Times - March 16th, 2024
- Hey, Remember When Rob Zombie Was Going To Direct THE CROW 3? - FANGORIA - March 16th, 2024
- New Walking Dead Twist Shows How The Zombie Outbreak Will Finally End - Screen Rant - March 16th, 2024
- Candid conversations from death row with The Zombie Hunter - Arizona's Family - March 16th, 2024
- Zombie! The Musical - REVIEW - City Hub Sydney - March 16th, 2024
- A Gorgeous Harp and Guitar String Duet of 'Zombie' by The Cranberries in Honor of Alexei Navalny - Laughing Squid - March 16th, 2024
- Y2K Review: A 1999 Youth Nostalgia Comedy That Turns Into an Attack-of-the-Computers Zombie Movie. But Only the First One Is Fun - Variety - March 16th, 2024
- AMC Announces Every Zombie in The Walking Dead Getting Its Own Spin-Off - Hard Drive - March 16th, 2024
- The Growing Threat of Zombie Code - CXOToday.com - March 16th, 2024
- The Greatest Zombie Movie Ever Gets Theatrical Return For Anniversary - Giant Freakin Robot - March 16th, 2024
- You won't expect which fighting game character pops up in this random mobile zombie game trailer for a bizarre ... - EventHubs - March 16th, 2024
- Coby White, Butler and the 'Zombie Heat,' Fontecchio Are All Here to Stay - Canis Hoopus - March 16th, 2024
- 'Land of the Dead' 19 Years Later: Romero's Return Was Smarter Than the Average Zombie Movie - Bloody Disgusting - March 16th, 2024
- Z Nation Season 6: SYFY Tease Return of Zombie Series 6 Years After Its Death - ComingSoon.net - March 16th, 2024
- Zombie! The Musical (Hayes Theatre Co) - Limelight - March 16th, 2024
- Get This Definitive Edition Zombie Game For Free Right Now On Steam - Screen Rant - February 19th, 2024
- The Best Ghost and Zombie Movie Romances - Vulture - February 19th, 2024
- The couple trying to keep killer 'zombie viruses' at bay - and protect us from another pandemic - The Telegraph - February 19th, 2024
- Meet the Serbian Businessman/DJ Who Runs the Zombie AI Southwest Journal - Racket - February 19th, 2024
- Dead Island 2 Spreading Its Zombie Virus to Steam in April - GameSpace.com - February 19th, 2024
- Lincoln hosts Alice Cooper and Rob Zombie - Omaha - KETV Omaha - February 19th, 2024
- 'The Walking Dead - The Ones Who Live' Review AMC's Zombie Epic Shambles On - Collider - February 19th, 2024
- Legislative recap: zombie bills, teacher pay, lithium tax, pipelines and more - Black Hills Pioneer - February 19th, 2024
- Japan's stock markets are on a tear. Will 'zombie firms threaten the bull run? - CNBC - February 11th, 2024
- Thebe Phetogos haunted response to zombie figuration in art - The Washington Post - February 11th, 2024
- Cosmic dust from 'zombie' galaxies could form planets and life - The Telegraph - February 11th, 2024
- I walked with a zombie: 16 monster love interests that set hearts aflutter - The A.V. Club - February 11th, 2024
- Free Steam zombie shooter you've never heard of is getting rave reviews, somehow - GAMINGbible - February 11th, 2024
- South Korea's 'zombie football' finally leaves them in a hole too deep to climb out of - ESPN - February 11th, 2024
Reviewed and Recommended by Erik Baquero