Natwest has become the first bank to warn business customers it may charge them negative interest rates on money held in current accounts. In what is believed to be a UK first, the bank has signalled its intention to force account holders to either pay to hold money or move funds elsewhere.
Although current plans for negative rates are restricted to business customers, fears are mounting that “pay to save” rates could soon become a reality for millions of consumers, if other banks follow suit. CONTINUE
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The last hurrah of central banks is the negative interest rate policy–NIRP. The basic idea of NIRP is to punish savers so severely that households and businesses will be compelled to go blow whatever money they have on something–what the money is squandered on is of no importance to central banks.
All that matters is that people and enterprises are forced to spend whatever cash they have rather than “hoard” it, i.e. preserve and conserve their capital.
That this is certifiably insane is self-evident. If an economy depends on bringing future spending into the present by destroying savings, that economy is doomed regardless of NIRP, for eventually the cash runs out and spending declines anyway.
Remain vigilant and remain prayful, our redemption draws nigh! #JesusAllDay