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RE: As a Dutch person, negative interest rates feel so wrong.

in #exyle6 years ago

!!! But...now money is free (for the government for now). I just don't know, it just feels so wrong. And there are already signs of a new recession on its way...what will they do next? Give even more free money when lending money!!!

YES, I TOTALLY AGREE!!!

Europe, North America etc. is just following Japan with deflation, negative interest rates and more, more QE.

Central banks policies have completely reversed their policies of having 2 percent inflation. THEY HAVE NOT BEEN ABLE TO DO IT!

So I thought as to why we are now entering into negative interest rates?

WELL GOVERNMENTS ETC. CANNOT PAY THE INTEREST ON WHAT THEY HAVE BORROWED, OTHERWISE THEY WILL DEFAULT. SO BY HAVING NEGATIVE INTEREST RATES, THEY CAN KEEP BORROW MONEY - AS IN A SENSE IT'S FREE.