Quote:
Originally Posted by Barry-xlovecam
Inflation is a de facto negative interest rate anyway
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Well if interest rates are lower than the inflation rate, that's a negative real interest rate so sure you lose purchasing power on your money and its like an invisible tax. However, it's different to actually losing the real amount held in your bank which you can see depleting every year in your account (in addition to inflation).
And it's being seriously considered, a couple of Fed guys have been touting this idea to get people prepared for it.
Fed raises possibility of negative interest rates
The mad thing is that under negative rates people would effectively be paid to borrow. Although, in practice people wouldn't actually be paid or it would be a tiny amount of the negative rate but this is really and truly insane. They really want to crash this system.