The aim of negative interest rates is to show people that it's a bad idea to keep money in the bank

[barryqwalsh]

Negative rates are a sign of the exhaustion of conventional stimulus. Since the US dragged the world economy into crisis in 2008, central banks around the world have grown increasingly desperate to restore growth. They have cut interest rates a collective total of 637 times and pumped $US12.3 trillion in no-interest funds into world markets, so-called quantitative easing.

The next step, already under discussion among experts, is even more radical. It's to hand out money to ordinary citizens, so-called "helicopter drops" of cash.



http://smh.com.au/comment/why-banks-may-start-dropping-money-from-the-sky-20160321-gnnbm4.html

 

[Dont Taz Me Bro]

I don't keep my money in the bank

And I work for one.....

 

[MikeK]

I don't keep my money in the bank

And I work for one.....

What alternative do you recommend?

U.S. Savings Bonds?

 

[barryqwalsh]

WHY BANK WHEN YOU CAN BUILD SOCIETY?



A building society is a financial institution owned by its members as a mutual organisation. Building societies offer banking and related financial services, especially savings and mortgage lending. These institutions are found in the United Kingdom (UK) and several other countries.

The term "building society" first arose in the 18th century in Great Britain from cooperative savings groups. In the UK today, building societies actively compete with banks for most consumer banking services, especially mortgage lending and savings accounts.

 

[CrusaderFrank]

It's a strategy with a 2 decade fail record in Japan and it's failed for almost a decade in the USA and Europe. Yes, we need more fail!

 

[AdvancingTime]

The ECB and other central banks often claim deflation drives or allows their QE policy of super low interest rates to remain and is central to their ability to stimulate. The moment inflation begins to take root or becomes apparent much of their flexibility in policy is lost. The 2% inflation target central banks have deemed optimum is not valid.

In the past I have put forth the idea that inflation could rule the day even if central banks are unable to keep the wheels on the bus and the economy collapses. This powerful force also known as stagflation can devastate those improperly invested. The article below explores the basis of this theory.

http://brucewilds.blogspot.com/2016/03/inflation-or-deflation-debate-continues.html

 

[EdwardBaiamonte]

The next step, already under discussion among experts, is even more radical. It's to hand out money to ordinary citizens, so-called "helicopter drops" of cash.

and what do you propose if anything???????