{"id":55011,"date":"2020-09-13T08:02:00","date_gmt":"2020-09-13T13:02:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55011"},"modified":"2020-09-13T08:02:00","modified_gmt":"2020-09-13T13:02:00","slug":"negative-interest-rates-have-arrived","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55011","title":{"rendered":"Negative Interest Rates Have Arrived"},"content":{"rendered":"
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Negative Interest Rates Have Arrived<\/span><\/a><\/h3>\n<\/div>\n
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We are often warned that negative interest rates are an approaching menace \u2014 not an immediate menace.<\/p>\n

Yet are negative rates already reality in the United States? Has the unholy day already arrived?<\/p>\n

Today we don the sleuth\u2019s cap, step into our gumshoes\u2026 and unearth evidence that negative interest rates are not the future menace\u2026 but the present menace.<\/p>\n

What is the evidence? Answer anon.<\/p>\n

Under negative interest rates\u2026<\/p>\n

Your bank does not compensate you for stabling your money with it. You instead compensate the bank for stabling your money.<\/p>\n

A man sinks a dollar into his bank. Under standard rules he hauls out a dollar and change on some distant date \u2014 perhaps $1.05.<\/p>\n

These days he is of course fortunate to bring out $1.01.<\/p>\n

Yet under negative interest rates he endures a rooking of sorts. He pulls out not a dollar and change \u2014 but change alone. The bill itself has vanished.<\/p>\n

His dollar may be worth 97 cents for example. Thus his dollar \u2014 rotting down in his bank \u2014 is a sawdust asset, a wasting asset, a minus asset.<\/p>\n

Would you willingly hand a bank a dollar today to take back 97 cents next year? You are a strange specimen if you would.<\/p>\n

Yet that is precisely as the Federal Reserve would have it\u2026<\/p>\n

The Federal Reserve wants your money eternally up and doing, searching, hunting, grasping\u2026 adventuring\u2026<\/p>\n

It must be forever acquiring, forever chasing rainbows, forever upon the jump.<\/p>\n

That is, the Federal Reserve would not allow your money one contemplative moment to sit idle upon its hands\u2026 and doze.<\/p>\n

For a dollar in motion is a dollar in service \u2014 in service to the economy.<\/p>\n

The dollar in motion runs down goods and services. It invests in worthwhile and productive enterprises.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Negative Interest Rates Have Arrived We are often warned that negative interest rates are an approaching menace \u2014 not an immediate menace. Yet are negative rates already reality in the United States? Has the unholy day already arrived? Today we don the sleuth\u2019s cap, step into our gumshoes\u2026 and unearth evidence that negative interest rates […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15378,124,11023,303,534,558,1389,3650],"class_list":["post-55011","post","type-post","status-publish","format-standard","hentry","category-economics","tag-brian-maher","tag-central-banks","tag-daily-reckoning","tag-fed","tag-monetary-policy","tag-negative-interest-rates","tag-nirp","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=55011"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55011\/revisions"}],"predecessor-version":[{"id":55012,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55011\/revisions\/55012"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}