Japan adopts negative interest rate in surprise move - page 2.

Blind Legs Parker

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Quote from: Bungeebones on January 29, 2016, 06:44:15 PM

So how exactly does negative interest work? They PAY you to borrow their money? Isn't that kind of like getting paid to do trash removal?

Normal bank account: people save their money and get annual interests = You earn money by leaving it in the bank.
Negative interest rate: people save their money and pay for it = You lose money by leaving it in the bank.

It's kind of like lending your money to people and giving them free interests at the same time. With a cherry on top.

Sourgummies

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Never ending parties are what Im into.

Quote from: Bungeebones on January 29, 2016, 06:44:15 PM

So how exactly does negative interest work? They PAY you to borrow their money? Isn't that kind of like getting paid to do trash removal?

No, negative interest is that YOU pay to store the money in their bank. Sort of... similar to money laundering, except for the Bank of Japan it's "legal"

Bungeebones

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So how exactly does negative interest work? They PAY you to borrow their money? Isn't that kind of like getting paid to do trash removal?

Blind Legs Parker

hero member

Activity: 2016

Merit: 721

When I went to Japan recently they doubled-checked my luggage and other passengers' on a systematic basis at the customs, to make sure that we weren't carrying any gold (amongst all the other traditional drugs and weapons). It was my first time being controlled for gold by the customs. They even showed us a sign, explicitly showing gold bars on them, asking us if we had any Cheesy

. Has anyone else recently had the experience when going to Japan?
There's something to dig there: they're going in with the hope that people will get their money out from banks in order to actually invest in businesses and not in gold or in bitcoin. It tells you something about how desperate they are about their deflation. That's good news for us anyway. I heard that regular Japanese people liked to save money on their bank account and didn't really buy stocks or assets, but these negative interest rate here are only aimed at rich people, who of course know about these investments.

Lethn

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http://www.bbc.com/news/business-35436187

This is pretty big news guys for those who haven't heard yet.

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