While people are dying of a pandemic and economic consequences, the smart people are talking about how Martians might repo Earth.

  • hogposting [he/him,comrade/them]
    ·
    4 years ago

    Now interest rates are back to zero and Japan and Europe have already tried negative rates and they don’t work.

    Negative rates as in "I borrow $100 today and owe only $99 next year"? Lmao fucking capitalists

    • snackage [he/him]
      ·
      4 years ago

      What you have to understand is that Banks have accounts at the central bank and they can just like you and me keep money on those accounts, overdraw etc. That's actually how the central banks get money into the system: they create the, from thin air and just transfer them to the Banks' accounts. Negative rates work by punishing banks if they don't withdraw enough money from those accounts and get them into circulation. So if a Bank had money on that account that money would start getting less. That's what they called Negative rates. It's a bad name. When rates are positive the bank has to pay back the central bank with interest namely the famous "interest rate" that's for the US Fed at 0% to 0.25% so lol.

      Source: I used to work at a bank. Nothing to do with money mind. Software dev. That stuff was part of the apprenticeship course.

      I might be wrong though so CC @President_Satan to check or add anything.