Here’s what negative interest means to you
- Charging negative interest rates
- This new policy will be spreading around the world over the next…
- Next, will come…
- Oh, and there will be additional fees for…
Here’s what negative interest means to you. There’s an interesting thing going on with banks around the world.
Last week the European Central Bank began charging negative interest rates. Negative interest rates is just bank speak for, “Now we are going to charge you money just for you putting your money in our bank.” This will certainly anger depositors. However, where else are you supposed to put your money? You have to pay your bills whether you write checks or pay online, so the money has to be put into a checking or savings account at the bank in order to do that.
This new policy will be spreading around the world over the next 18 months. When it gets to U.S. you will see a huge backlash against the banks. Not only are the banks not paying interest to depositors for using their money and making their own interest on it, they are charging people for the privilege of parking their money in their bank.
Next, will come transaction fees in addition to paying rent (the negative interest) on your money. If you deposit a hundred dollars into your checking account a transaction fee will be charged for their trouble. If you need to do the transaction through a live person there will be a live person charge. The fees in most cases that are already in effect now will go up 50 percent or more. Service fees, transaction fees, live person help fees, on top of all the ATM fees and soon to be charged online-banking fees where you will pay a fee for each bill you pay online.
Oh, and there will be additional fees for taking your money out of your account. So, until people figure out a way to get around all this the banks will be improving their bottom line in global economy by charging people fees at every turn.
QUESTION: What should readers take away from this message today?
ANSWER: That if you think it’s an insult not to get paid any interest on your deposits, wait until you have to pay the bank just to hold and use your money.
QUESTION: Why is this information timely?
ANSWER: This information is timely because it was implemented in Europe last week and in about a year it will be common place around the world.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: Deal in cash as much as you can, or consider bartering by trading services and use something like Bitcoin for commerce.
COMMENTARY: Banks think they have you over a barrel. They believe that you cannot exist without them. As long as cash still exists and there are other options like barter and Bitcoin you still have a choice. These banks are using your money against you as long as you allow it. People in the U.S. will get mad about this when it hits over the next 18 months and hopefully that will be the turning point when Americans take a stand. There are still other choices available to them. This would be when the shift kicks in and the masses stop buying into what the powerful corporations are selling and banksters are pushing.