{"id":905,"date":"2014-10-31T07:44:17","date_gmt":"2014-10-31T11:44:17","guid":{"rendered":"http:\/\/olduvai.ca\/?p=905"},"modified":"2014-10-31T07:44:17","modified_gmt":"2014-10-31T11:44:17","slug":"the-wrath-of-draghi-first-german-bank-hits-savers-with-negative-interest-rates-wolf-street","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=905","title":{"rendered":"The Wrath of Draghi: First German Bank Hits Savers with \u2018Negative Interest Rates\u2019 | Wolf Street"},"content":{"rendered":"<p><a href=\"http:\/\/wolfstreet.com\/2014\/10\/30\/the-wrath-of-draghi-first-german-bank-hits-savers-with-negative-interest-rate\/\">The Wrath of Draghi: First German Bank Hits Savers with \u2018Negative Interest Rates\u2019 | Wolf Street<\/a>.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">Deutsche Skatbank, a division of VR-Bank Altenburger Land, which was founded in 1859, is not the biggest bank in Germany, but it\u2019s the first bank to confirm what German savers have been dreading for a while: the wrath of Draghi.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">Retail and business customers with over \u20ac500,000 on deposit as of November 1 will earn a \u201cnegative interest rate\u201d of 0.25%. In less euphemistic terms,\u00a0they have to\u00a0<em style=\"box-sizing: border-box; word-wrap: break-word;\">pay<\/em>0.25% per annum to the bank for the privilege of handing the bank their hard-earned money or their business cash.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">Inflation has had a similar effect in the zero-interest-rate environment that the ECB and other central banks have\u00a0inflicted on savers, but this time it\u2019s official, it\u2019s open, it can\u2019t be hidden. Instead of lending your moolah to the bank so that the bank can lend it out to businesses and retail customers for all sorts of economically beneficial purposes, you\u2019re financially better off hiding it in the basement. Grudging respect is due the ECB and other\u00a0central banks: through the perverse regime of ZIRP, they\u00a0have succeeded in transmogrifying \u201ccash in bank\u201d from an income-producing asset to a costly liability.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">\u201cPunishment Interest\u201d is\u00a0what Germans lovingly call\u00a0this. It\u2019s the latest and most blatant step of the central-bank strategy to confiscate in bits and pieces and over time the wealth that prudent people and businesses have accumulated, and that should have re-entered the economy via the intermediation of the banks.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Wrath of Draghi: First German Bank Hits Savers with \u2018Negative Interest Rates\u2019 | Wolf Street. Deutsche Skatbank, a division of VR-Bank Altenburger Land, which was founded in 1859, is not the biggest bank in Germany, but it\u2019s the first bank to confirm what German savers have been dreading for a while: the wrath of [&hellip;]<\/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":[359,426,558],"class_list":["post-905","post","type-post","status-publish","format-standard","hentry","category-economics","tag-germany","tag-inflation","tag-negative-interest-rates"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/905","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=905"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/905\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}