6 () posted 35 days ago by BuckeyePatr1ot 35 days ago by BuckeyePatr1ot +8 / -2 15 comments share 15 comments share save hide report block hide replies
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?
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 🤣