News Flash! Inflation is typically much worse than are negative interest rates

Negative interest rates allow banks to charge depositors a small percentage per month, for holding their money, rather than paying them interest. Negative interest might (typically) cost the depositor one or two percent. Switzerland has been doing negative interest rates since 2015.

For obvious reasons, most American citizens and companies are strongly opposed to negative interest rates.

So, what do we get, instead? I N F L A T I O N : Something that will be much more expensive, more difficult to quantify and control and much more destructive to the average bank account than negative interest rates could ever be, gobbling up huge chunks of buying power, by effectively devaluing the U.S. dollar.

This is what often happens when corrupt politicians and their bankrupt government regimes go about handing out huge amounts of money they do not actually have, in order to cover up their failings and prop up their (low IQ) voting base!

Think: Venezuela. Think: Let’s Go Brandon. Think: Irresponsible and corrupt Democrats and Republicans, in Congress. Think: Compliant Federal Reserve officials. Think: Rapid economic decline.

Think: Heaven, help us!

1 Comment

  1. Dear Doug: Thought you might be interested in this…

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