Topic: Negative interest rates continue: German bank first nonstate borrower <0% bond - page 2. (Read 1262 times)
March 09, 2016, 02:01:08 AM
Extreme problems require extreme solutions, and the fiat system seems to think negative interest rates will be the answer to all their problems. They will do anything to stimulate a dying cow and milk it, until the last drop. They should rather address the real issue and that is the role banks are playing in the problem we have now. People are given loans and debt they cannot pay, and the central banks are printing fiat money like toilet paper.
March 09, 2016, 12:08:22 AM
That's a really worrying news for the so-called developed countries. It's really sad that people is paying to the bank for protecting their own asset. It will lower the money circulation in the economy and purchasing power of general people will decrease. It will also lower the production rate of factories as demand will be lower. That will lead to job cuts and will further worsen the scenario.
Simple rule of economy.
Simple rule of economy.
March 08, 2016, 08:26:22 PM
Well it were expected to happen,financial problems are showing off and all countries are facing them some more others less.This will show and make the old investors how banks arent safe anymore they are controled by the governements and together they rule the country.
March 08, 2016, 05:46:11 PM
See web version here: http://www.bitcoinfuturesguide.com/bitcoin-blog/negative-rates-continue-a-german-bank-has-become-the-first-non-state-borrower-to-issue-euro-denominated-debt-at-a-negative-yield
The Financial Times is reporting today that German bank Berlin Hyp is the first non-government entity to issue bonds at a NEGATIVE yield.
Ever since deflation has become a threat in a new trend of secular stagnation in Western economies, rates have been under enormous pressure in debt markets.
In fact, ONE THIRD of euro-area government bonds are at NEGATIVE yields. This is a tremendous and unprecedented occurance. As rates continue to go negative, depositors are paying banks to protect their money and asset-rich entities are able to get PAID for borrowing money!
Finally, over in Japan, last month it sold a 10-year bond at negative yield That means that they are being paid to borrow money, even when their debt to GDP ratio is over 200%. Clearly the fiat system is upside down right now and they don't know how to even manage it properly.
In this environment where you are being taxed just for having a bank deposit in Europe, bitcoin will surely get more bullish. Bitcoin will never have negative interest rates, and in July we hill have a block reward halvening which will slow the increase in supply as we reach the 21 million cap.
Be prepared. If your country does not yet have negative rates it is coming. If the most advanced countries in the world like Japan and Switzerland are forced to set negative rates to survive, who knows what is next, nobody is safe.
The Financial Times is reporting today that German bank Berlin Hyp is the first non-government entity to issue bonds at a NEGATIVE yield.
Ever since deflation has become a threat in a new trend of secular stagnation in Western economies, rates have been under enormous pressure in debt markets.
In fact, ONE THIRD of euro-area government bonds are at NEGATIVE yields. This is a tremendous and unprecedented occurance. As rates continue to go negative, depositors are paying banks to protect their money and asset-rich entities are able to get PAID for borrowing money!
Finally, over in Japan, last month it sold a 10-year bond at negative yield That means that they are being paid to borrow money, even when their debt to GDP ratio is over 200%. Clearly the fiat system is upside down right now and they don't know how to even manage it properly.
In this environment where you are being taxed just for having a bank deposit in Europe, bitcoin will surely get more bullish. Bitcoin will never have negative interest rates, and in July we hill have a block reward halvening which will slow the increase in supply as we reach the 21 million cap.
Be prepared. If your country does not yet have negative rates it is coming. If the most advanced countries in the world like Japan and Switzerland are forced to set negative rates to survive, who knows what is next, nobody is safe.
Jump to: