6 You can only have negative interest rates if you do a ban on cash or else people will take out their money leading to mass bank-runs. (twitter.com) posted 4 days ago by BuckeyePatr1ot 4 days ago by BuckeyePatr1ot +8 / -2 15 comments share 15 comments share save hide report block hide replies
gtfo European countries have negative interest rates
they still exists and use cash
nice try retard
No country has ever used negative interest rates.
Japan (BOJ) — went to –0.1% in 2016 and stayed there for years. Goal: weaken the yen + fight deflation.
Eurozone (ECB) — –0.5% deposit rate from 2014–2022. First major economy to go deep into the negative territory.
Switzerland (SNB) — hit –0.75%, one of the lowest in the world, to keep the franc from rocketing in value.
Denmark — ran –0.75% as well. Mainly to defend their currency peg to the euro.
Sweden (Riksbank) — went negative in 2015, bottoming at –0.5%, then climbed back out in 2019.
These were institutional rates, not personal rates. The idea of negative institutional rates is to force banks to push cash reserves into the economy.
What Trump is suggesting is unprecedented, and suggests that natalism is spiralling so badly already that they need a major cash infusion.
goalpost moving ASAP
it's ok for Japan and EU to do it but when POTUS does it, it's inherently bad
gg TDS
The difference is that their rate was specifically for institutional reserves, and what he's suggesting is savings erosion as a stealth tax.
They already do that with inflation. You suck at this.
how do you know the inner working of trumps negative interest plan?
Because I can read macroeconomic data and see what is breaking and how.
Obviously we're talking about institutional rates...
Did you seriously think Trump's plan was to go down to you local branch and have them set the interest rates?
Not literally, but in practice yes. The economy is stalling in a way that institutional lending wouldn't be able to reverse.
They have to force the consumer to spend, because that's what's cracking under pressure.
Do you even look at the economic data? Do you understand what you're talking about?
You are a glutton for punishment 🤣
Have you read the ADP data? The inflation data? It's all going badly. It's looking like stagflation worse than under Biden, all because of natalists.
Confidence in US bonds needed to be higher before the refinancing, and the OBBB killed hopes of a Milei-style financial revolution.
The natalist is stealing your savings to fund the breeding cult.
If only someone told you of this plan months ago.
Ooooh, say more smart things, so impressive