I posit negative interest rates are payment for money security by those who expect a greater portion of that money-wealth value to be confiscated otherwise. It should be clear at least to the intelligent rich that we don’t actually have property rights unless we are globalist elites. Thus, negative interest is an investment in future property rights on current purchasing power.
If we were secure in our property rights, people would rather hold on to their money than accept negative interest rates, including banks thus put out of business. Banks can’t make money without a positive interest rate to permit unwinding that covers loaned out deposits (the principal), administration expenses, and some excess that is pure profit regardless of inflation. Higher inflation does not hurt banks income stream like it hurts our holdings of purchasing power, and the system simply requires avoiding negative interest rates. Connected bankers can always buy assets and have the government protect those assets that by being value not intrinsically denominated in money units are thus protected against inflation by having a price tag that nominally goes up, up, up.
The Helicopter Ben theory is that the government can print their way out of non-positive interest rates, but that theory presumes, mistakenly, there is no such thing as a perpetual motion machine, that property rights are not essential for producers to produce the wealth that gives fiat money any actual value as purchasing power and are not essential to holders of purchasing power (to include entrepreneurs, investors, etc) who seek protection from the government control of the economy in the guaranteed government bonds that are used to control the economy. Fascinating that the establishment will always double down on corruption to create such an incredible clusterfuck.
At some point, the welfare recipients glorifying the ‘natural sin’ (treating absolute guarantee from authority as a fundamental moral virtue) will be identified as useless eaters by the desperate politicians, perhaps dictators. If the culling is not done slowly and slyly on the down low or in publicly approved way (down with patriarchy, etc.), it will trigger SHTF.
Confiscation of money and wealth will have the effect of culling. The banks as part of the trust that is the entire global economy may want to push their deposits out into the economy and back to work, but that will take slavery. Expect prisoner labor to become more and more justified based on pulling their fair share. The philosophical error is that those who don’t deserve to be in prison would be more productive with civilized freedom and those who can’t be productive ought to mooch
in outside [RD: edited 13 Feb. 2016] a patriarchy where patriarchs cannot and will not abdicate their political authority to dispense justice.
The establishment will need to greatly reduce the reproduction (or increase the death) rates of moochers to
do this permit increased wealth creation [RD: edited 13 Feb. 2016], but they need to reduce the reproduction (or increase the death) rates of producers to maintain political control (over property rights) that is stable only by doubling down (using greater unilateral force to hold people in line) and is thus building polarizing tensions that will create conflict that will be harder and harder to control by playing groups against each other in Hegelian dialectic (e.g. the ‘War on Terror’, the ‘War on Drugs’).
No one can predict the future, but it sure looks like one hell of a train wreck in the making. The most ideologically insane of political policies will really be sane attempts at culling others to lay claim to dwindling resources.
Rhetoric could save your life, bro.
How long the sheeple moochers providing political assent and sheeple producers providing wealth and services to buy will go about their business within the economy as if they have property rights is anybody’s guess.
PUA is the way. Unplug, side step+, ride*, rebuild.
*You should be here applying your rhetoric skills.
+I am here trying to get there, fucking sucks.
—‘Reality’ Doug, 29 May 2015