Mortgage Rates

Negative Interest Fees Defined





In July of 2009 the central financial institution of Sweden decreased its right away deposit rate to -.twenty five% effectively charging the retail bank’s of the country to pay it to seem after it is funds.

At the change of the millennia detrimental curiosity premiums were being considerably of an financial fantasy, the very same way faster than mild travel is a fantasy for theoretical physicists. Economists had speculated about what detrimental curiosity premiums would imply but no one ever genuinely envisioned them to exist in the actual entire world. Today detrimental curiosity premiums dominate the industry for sovereign bonds and are the staple of many central banking institutions, but like genuinely how does this make feeling, who in their ideal intellect would pay an individual to acquire their funds?

Effectively to comprehend this appropriately you have to very first comprehend what curiosity premiums and central banking institutions are truly supposed to do in the very first area.

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References –

Buiter, W.H. and Panigirtzoglou, N., 2003. Beating the zero certain on nominal curiosity premiums with detrimental curiosity on currency: Gesell’s solution. The financial journal

Ilgmann, C. and Menner, M., 2011. Negative nominal curiosity premiums: historical past and present-day proposals. International Economics and Economic Coverage

Rognlie, M., 2016. What decrease certain? Financial policy with detrimental curiosity premiums

Bech, M.L. and Malkhozov, A., 2016. How have central banking institutions executed detrimental policy premiums?. BIS Quarterly Overview

Scheiber, T., Silgoner, M. and Stern, C., 2016. The progress of financial institution profitability in Denmark, Sweden and Switzerland during a interval of extremely-very low and detrimental curiosity premiums

Danthine, J.P., 2018. Negative curiosity premiums in Switzerland: what have we uncovered?. Pacific Economic Overview

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37 comments

  1. Hi Guys I hope you enjoy the new Video 🙂 I will be answering questions on here for as long as I can keep up with the comments. I will also be hanging out and chatting live on the new discord server that you can join here: https://discord.gg/TjWDPAA

    Otherwise please like and subscribe if you enjoy 😀

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  2. Negative interest rates is the same what inflation is for societies where more ppl have cash than digits. Hidden tax on savings. Tell me once again, how can it be good for economy to punish everyone who does not go to the bar and spend all money he has immediately?

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  3. Why buy bonds at a negative rate when you can just buy gold lol

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  4. 6:42 👏🏻 👏🏻 👏🏻
    8:45 👏🏻 👏🏻 👏🏻

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  5. 2:44 I'M NOT GOING TO IGNORE THAT BABY!

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  6. If we go to war , the people that made comments here would be enemies , who shoot each other on sight …. and I … is gonna run …….

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  7. We have to war to set everything right and wait it to go wrong later and we …. start the next war … on and on and on

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  8. I dont understand people who borrow money to buy something, resulting in losing more money with interest rates… Better save money and buy the thing at a lower price🤷‍♂️
    Maybe people are just stupid and banks profit from stupid people🤔

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  9. Negative interest rates should make cryptocurrency look more attractive to the public.

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  10. Great video idea: What if no one in a country owed debts? How would the economy be? Would it boom or sink?

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  11. Side step all of this and buy Bitcoin.

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  12. You can not say yet that negative interest rates are an accepted reality yet. Let’s see first how the average people react when it really affects them, and then in combination with a crisis….

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  13. Unproductive Lending I.E (real estate transaction credit, consumer credit, car loans, speculation credit etc) all it does, it increases money supply today, while leaving the same amount of goods and services tomorrow, thus creating inflation and eventually bubbles.

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  14. So in the meantime watching your videos waste of time ! And more viewer for you in YouTube – I called them YouTube buggers 😉
    So I give you tm down

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  15. Can you please discuss the causes of a recession and how can it be averted? Your explanations are really good and understandable for us who did not do economics.

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  16. Are some store credit cards negative interest rates? If you take the deal that they offer and pay the card off without any interest accrued…… They payed you to borrow money.

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  17. You are using the new use of the term "inflation". I strongly suggest that the correct usage is as follows. Inflation = an increase in the currency supply. Inflation usually results in price rises, due to a devaluation of the currency. Most people appear to disagree with me, but that doesn't make me wrong lol ☺

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  18. These are not even money. They are just numbers in the computers if account number on a piece of paper. Ask them to give real money like gold or silver. They are just trying to fool those people whose already been fool by accepting this evil monetary system.

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  19. People already have no incentive in depositing their money into banks when interest rate below inflation rate, with negative interest people would have even less interest; banks would have no money to lend unless you want keep the deregulated system that caused 2008 world crises or keep the economy running on an endless incremental debt till the next incident that will cause corporates to default and complete system meltdown.

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  20. It is supposed If people do deposit their money at -0.2% its because they have no use for their money and need a safe place to keep it; if interest rate goes from -0.2% to -1%, how that is good for depositors of -0.2% to sell it between -0.3% to -0.9% to redeposit it at -1%?

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  21. its means their economy is going down.

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  22. Borrow at 0% interest rate, keep it balanced with savings. Done: you're paid to borrow, as a consumer. And when the 0% deal ends either shift the debt to another 0% deal (and 0 fees, otherwise it's pointless) or pay it off with the savings you kept around while spending the bank's money.

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  23. "Who in their right mind would pay someone to take their money" – Laughs in Retail Banking

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  24. JP, Citi and BoA are NOT commercial banks dude ! They don't lend money. Making such a video you should have been knowing this.

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  25. Bank runs lol. People don't keep money in the banks. Banks are where people keep their debt.

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  26. The REAL purpose of negative rates and cash bans and how they can be maximized!:

    The "elite" families KNOW that the GREATEST TRANSFER OF WEALTH will be going on for the next 5-10-20 years and they NEED TO STEAL as much of that as possible ( negative rates/ bail-ins/outright theft by INTENTIONALLY mislabelling YOU and SHUTTING DOWN your accounts….)

    YOU are unworthy, in their eyes, to have money and be FREE and they will ensure YOU BECOME/ REMAIN a WORTHLESS and POOR S L A V E.

    The ONLY reason ANYONE wants a "cashless" society (and money digitized) is so that you CAN be controlled by having your account "bailed-in", your account pillaged thru negative rates, your account SHUT DOWN, ALL your activities monitored and your actions MANIPULATED thru financial threats!

    An IMF "Working Paper" goes into "negative rates" and how to MOST effectively and efficiently get the most money sucked out of accounts–and there is NO limit to how much they could go into negative rates, -1%, -10%, -30%, -75%, -100% –remember we are dealing with PSYCHOPATHIC LIARS, who will tell you "no it wont happen, blah blah blah" (and how cash stands in the way of this PILLAGING) and HOW Central Banks need to distance themselves from the public backlash by getting their respective Governments to MAKE IT LAW!!!!

    The few "elite" families OWN, CONTROL and USE the Bank for International Settlements (BIS) to maintain a chokehold on the finances of the world–BIS is the TOP of the TOP bank in the world (the "elites" ALSO OWN, CONTROL and USE the IMF AND the World Bank AND Central Banks–with STOOGES manning them so as to help give a FALSE PICTURE of those entities being "independent". There is also a lot of legal trickery and such to make it seem as tho they are NOT connected or owned).

    The orders go from:

    1) The "elite" families ORDER BIS ( a junior organization to BIS is the Financial Stability Board [FSB] whose purpose is to give "policy recommendations" to BIS, but these "policy recommendations" are SOLELY designed FOR the "elite families" and APPROVED by the "elite" families–DO NOT FALL for these shenanigans and sleight of hand tricks)!

    2) BIS to the World Bank (WB) and
    /then the International Monetary Fund (IMF) — the WB basically goes into un-indebted Countries and SLAMS them into debt then the International Monetary Fund (IMF) comes in later to MANIPULATE political actions, because the IMF acts as ENFORCER/the MUSCLE against those debtors/indebted Countries and forces "payments" thru austerity or other financial/BEHIND THE SCENES threats.

    3) The IMF orders Central Banks (CB).

    4) CBs then order national/local banks AND gets criminal politicians to put in laws that help them and HARM the people, this is done because they (Central Bankers) slithered and slimed their way INTO the Treasuries of various Governments!

    5) National/local banks then force it on retailers and depositors!

    Thats basically the SCAM!!

    So time to shut down this SCAM and jail the "elites"!!!!

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  27. do u have a patreon

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  28. lol i wish i could buy a 250k house. Would probably need 800k to buy here outside of Vancouver

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  29. this is Bullshit. negative interest rates show that for every 10 houses a bank issues that only 1 is backed with real money (if you want to even call fiat real money) so the other 9 are created out of thin air. So if the banks get paid back 9 loans that are "tin air" then they still make money even if the interest rates are negative.

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  30. The Central Bank primary role is not to control inflation. It is to control the transfer of wealth from citizens to bank owners.

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  31. if you can not pay back they just take your house. or put you in jail.

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  32. Sweden borrow money, Norway loan money + own 1.4% of all stocks in the world. Majority of Swedish people live in blocks, Majority of Norwegian live in houses. Majority of people living in house in Sweden dont own the house, but rent it. Majority of Norwegian who live in Houses own it. Sweden have an average salery of 20,000 SEK, Norway have an average salary of 25,000 nok.

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  33. Economy is so stupid

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  34. Economists are really not confident about the future huh?

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  35. I already implement negative interest rates. I’m not interested in going to work or paying bills.

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  36. Birthplace? What about Japan

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  37. Take into account banking fees and the little guy has been dealing with negative interest rates for some time. At the end of the year, tally up all of your banking fees, subtract any interest they've paid and compare with the zero you would get for a sock under the bed. Most people would come out ahead with the latter.

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