This page has been archived and commenting is disabled.
ECB "Technically Ready" To Ask Depositors To Pay Banks For Holding Their Money
The first relatively big bombshell has been dropped:
- *DRAGHI SAYS ECB HAS OPEN MIND ON NEGATIVE DEPOSIT RATE
- *DRAGHI SAYS WILL COPE WITH NEGATIVE CONSEQUENCES IF WE ACT
This has crashed EURUSD and smashed German 2Y rates into negative territory.
»
- 26970 reads
- Printer-friendly version
- Send to friend
- advertisements -
In the movie and TV propaganda industry this mind game is called Predictive Programming.
Ah, the template, after being beta-tested in Cyprus.
Tyler, mind linking to that story you had months ago that talked about this hypothetically--way before Cyprus--explaining that one of the fundementals of "money" is the store function.
With inflation that's double plus negative interest rates.
Long mason jars and shovels.
Paying to store your gold makes sense. Paying to store their paper doesn't.
I can't wait to refinance my mortgage at a negative interest rate. The bank can pay ME to live in my house!! =)
Were the rates on Japanese savings accounts negative while they did their whole deflationary thing the last zillion years? I'm asking seriously. I don't know, but as a point of reference I'd like to.
They were not, you'd get a crappy interest of less than 1%
No, and that was actually part of the "problem" for their controllers, people were actually gaining real wealth (at least in fiat terms, adjusted for in this case deflation) just by putting their money in the bank (or JGB's). Abe is trying mightily to reverse this absurd notion that people gain real wealth from loaning it to banks.
Negative interest rates huh? Well then, I'll get me some anti-money to combat it. My anti-money is GOLD! Screw you Bernanke!!!
Yeah, good luck with that.
It's not even paper being stored. With around 950 billion in paper dollars backing some 9.4 Trillion in electronic "paper" money. So in essence you'd be paying to store 1's & 0's on a server in the clouds. The rich get bolder. They will not be denied and they will force you to spend your money to get the inflation up and profits flowing.
ADVERTISEMENT
_______________________________________________
There has never been
a better time to buy
a BedBunker!
California King Size
only
$5,680
Order now, European bank depositors,
before fucking Mario gets it all!
Operators are standing by.
Gold coins, silver coins, guns, ammo, and food not included.
Only 36 hand guns and 27 rifles?
<Slackers.>
lol
Need to save room for ammo
Buy two safes a small one with very little in it and your documents and hide it. A bigger one with the rest of your good staff and hide it very well.
Buy a welding blanket, cover your PM's and cash, put it in the safe and sleep well.
These blankets are good to 1800-2200 degrees F. http://www.steelguardsafety.com/welding-blankets.htm?gclid=CNfn1dDe_qMCFVw65QoddB-bLA pick the white spark silica cloth.
This is not an advertizement.
http://www.anclotefire.com/products.php?cat=19
Holy shit! Have you seen their shipping rates? Better buy a big one to cut the percentage cost/shipping. Smallest one in the white spark silica you mention, costs 125% of the product to ship.
DP
That gives a totally new meaning to the age old idea of storing your money in your mattress.
Note: If you are buying a safe, buy it with cash not on credit card or there will be a traceable record of the address where that safe is.
death bed
for me if it don't fit in a backpack not to interested...
A good thought, indeed.
However....
You got to know when to hold 'em
Know when to fold 'em
Know when to walk away
Know when to run
i spend 1/2 of my free time learning nature and survival, for the pure lure of it all. sitting on my stands on 40 acres of oaks and aspens has taught me more than any college could ever teach me. one learns the ways of mamals, birds, and plant life and then I can grasp many fundamentals of humans and how we DO NOT fit in/with the cycles of nature(sciences of reality), because of our own weeknesses...
appropriate time to thank,
H.H. for your contributions as well as Cog Dis.
look around ones' self
and
look within
the saying goes "not realizing you are safer with nothing, than a backload of burdens"
and i might add, knowing when to cut bait...
Yeah. When they rob your house and take your stash, their last act will be to lock you in your own safe, where you will quickly die from lack of air.
Yeah. When they rob your bank account and take your stash, their last act will be to lock your children and grandchildren into paying interest on bailouts for the remainder of their lives, but only after implementing capital controls.
I think many would rather take our chances with common thugs trying to rob our house, rather than enslaving our children.
I find it so interesting when the anti-gold/anti-prep propagandists imagine this insane scenario of total societal collapse. While this isn't totally out of the question, I envision a scenario where we merely have to be completely self sufficient for a while, and are preparing for a situation where our local communities are better prepared for this situation.
If you get too rambunctious, it would give new meaning to money shot (x5000).
Looks uncomfortable. Is there a pillowtop version?
(ha ha)
:) +100 :)
But wait, there's more. Order now, and we'll throw in steel window grates for the entire home, free!!!
36 handguns... 27 rifles... I don't think that guy needs a safe :)
NO GRENADES OR RPG'S?!
And they better hope that the bedroom is on the groundfloor because if not, they fucking better have reinforced ceilings!
Funny thing about a safe... it needs to be hidden also.
and under the bed... is not hidden...
If you cannot walk in, buy it with cash, and take it with you, then you have an entity with your name and address that knows you have some goodies to collect when the day comes.
And what if, some designer engineered it with a wireless remote locking device that could lock you out...when that theoretical day arrived?
Are you talking about a Cypriot bank?
WB7--is that you?
There has never been
a better time to buy
a BedBunker!
California King Size
only
$5,680
This is laughable, so easy to break into and even easier to steal the whole damned thing.
The locking mechanisms and doors MIGHT keep out small time hoods, until they came back with a regular crowbar, and a 26# Wedge point bar.
For that dough you can get a NEW TL 15/30 safe, for real non Pro break ins(would take 5 mins to open this POS.
Or better yet, a TRTL 30-X6 Used for $8k.
There is proper place for everything, even craptastic sentry fire box, but the number of proper places for a trtl 30x6 is extremely limited and you are not going to find one capable of storing long guns delivered and properly installed for anywhere near $8000 -- even assuming you have an appropriate place to put it.
By your logic you could have a class 3 vault door thrown on the back of truck, which would actually provide far superior protection. The real price and the internet gawker price are not the same thing.
I smell a JPM Zames behind this.
Hurry folks step right up - Now you too can pay to have the privilege of being an unsecured lender to an over leveraged financial institution run by clinical psychopaths
Better yet, start your own bank with gold! It is vertical right now and our panel of experts sees this continuing well into the future.
diversification:
boxes, tubes = "rounds" of value...
be your own banker!!!!!!!!!!!!!!!!!!!!!
your own currency stacks/boxes check
security in place check
cash flow from Contract for Deed check
unregulated check
free to roam check
Monetary freedom often comes in stages.
First it was the great feeling of being debt-free.
Then it was being 'cash-only' and chuck the credit/debit cards.
Next was getting used to the idea of converting fiat into PMs.
Last was realizing that after the first three steps, you don't NEED a bank!
spot on; at this point in time, one can start to eye stealthfull freedom...
Alles into das Equities, ja? Mach schnell!
Let me assist you: "Alles für Aktien, klar? Komm' in Gange!"
Vielen danken, mein Freund.
that's really good.
and so true.
Bull Shit
No
FU
A dad gum Tax To Far.
I will not be taxed by the Fed. Bernanake ... CONgress ... are ya listening.
You already are taxed by the Fed, it's called inflation.
The ECB is not "Technically Ready" for negative bank deposit rates.
Negative rates coupled with bail-ins and unisured deposits destroy the very (false) value proposition of banks.
Until Mario places a MONSTER order for intaglio presses and corners the market on cotton-linen blend --
The ECB isn't technically ready for shit, much less in possession of a sufficient inventory of its house brand two-ply to wipe itself after it craps its banking system.
Here's how it works. You give them $100, and you get back $80 a year later for your "investment" in your bank.
...sounds a bit like a pension fund, you pay in, they hit you with charges, and if you wait long enough it will head to zero.
WE already HAVE NEGATIVE RATES,you get .95%, maybe 1.25%, and the LIARS at CPI says inflation is at 2-2.5%.Money in Banks is losing you a minimum of 8-10% per year.
And in the bloggosphere it's called "Predicted for a long time already"
NEXT UP:
PREPLANNED PAYCHECKS
Preplanned paychecks that say: You have to spend this much on these kind of items and that much on those.
NEVER HAPPENED BEFORE YOU SAY?!
YES IT DID!!! DURING WARTIME THEY CALLED IT RATION COUPONS!
And I'm sure the communists had a word for it also...
"Kartki" in Polish
So, are they going to fix the bills so that they fit in said allotments? Or do I get to listen to my creditors and purveyors of mandated services scream at me every over the telephone every month?
But outsida Hollow-wood, and it's idiotbox subsidiaries....
it's called cabbalist necromantic law... you will be given all necessary of your pending fate...
failure to dispute that notice of expropriation with force of arms will be deemed passive acceptance of same.
fight the fuckers, join the local credit union.
1, 2, 3 for me and none for you.
You F!*k!ng moron.... NO WAY will anyone put money in a bank so it can be stolen and pay the bankster robbers for the privilege! If they are stupid enough to do so then they deserve to be robbed
A constant form of inflation since it was launched.
That just never gets old. I can't wait until we substitute Dollar, America and Americans into the quote.
Yes, we shall always remember: http://www.zerohedge.com/news/2013-04-04/mario-draghi-responds-zero-hedg...
how does someone learn to write such boring text
it's a great talent
to a large extent, subdued loan dynamics reflect the current stage of the business cycle, heightened credit risk, and the ongoing adjustment of financial and nonfinancial sector balance sheets.
at the same time, available information on nonfinancial corporates access to financing indicates tight credit conditions, particularly for small and medium sized enterprises in several euro-area countries.
in order to ensure adequate transmission of monetary policy to the financing conditions in euro-area countries, it is essential that the fragmentation of euro-area markets is reduced further, and the resilience of banks strengthened where needed.
34:00
you see, you have a pecking order.
ideally, uninsured depositors should be the very last category to be touched.
the commission draft directive foresees [forces?] exactly this.
..
you want to make sure that you have a situation where banks are not only properly supervised also with a view that their size would not out-size the economy where they reside, but also with a view that they have enough buffers, be they of capital, be they of other balienable bonds ..
what did he say?
balienable?
http://www.youtube.com/watch?v=XU_q77z0PcQ&t=2120s
Mario may not be as uninformed as he apears to be. Maybe the Europeans believe in this "political capital" and will gladly sacrifice their financial capital to prove it to the rest of the world.
It is like Brando's monologue at the end of Apocalypse Now.
You mean this?
Very true. However, I do routinely chastise myself for having to have an account with the banksters to even pay bills.
Of course, when I complained about my cable TV bill, a friend told me: "Don't pay them. That only encourages them. If you pay them, they'll send you a bill next month."
Sums it up:
http://www.youtube.com/watch?v=y8Kyi0WNg40
Yeah, it's all the depositors fault. None of this economic carnage would have been possible, but for the fucking depositors. Let's punish the evil depositors.
You are SO freakin' right ON, man.
F**kin' depositors.
They deserve to be flayed alive!....even THAT'S too good for them!
Think about it Cursive.....It's Cyprus except no need for the drama. They will leave the banks open and just provide the noose's. The depositors can come and voluntarily hang themselves.
Mrs. Cog and I have a running discussion on this broad topic. My view is simple. Those who are practical, prudent and responsible (clearly the minority) will eventually be sacrificed at the altar of saving the majority from themselves.
Debt is freedom and saving is tyranny upon the debtors.
CD hang in there. They have suspended the laws of physics but the longer they suspend it the harder it snaps back and when it does it will be the practical, prudent and responsible that avoid the whiplash.
Cog - great post. Factual. Insightful. Articulate ... and succinct.
"Debt is freedom and saving is tyranny upon the debtors."
We are again in days when "good is evil and evil is good".
Or as Isaiah put it 700 BC
Woe unto them that call evil good, and good evil; that put darkness for light, and light for darkness; that put bitter for sweet, and sweet for bitter!
Woe unto them that are wise in their own eyes, and prudent in their own sight!
Woe unto them that are mighty to drink wine, and men of strength to mingle strong drink:
Which justify the wicked for reward, and take away the righteousness of the righteous from him!
(Isaiah 5:20-23)
Nah, we'll just pick up our altar and go home ... ;-)
You dear sir or madam have been personally selected to participate in the next DHS drone ordinance test. Please stand by.
lol
I went to a summer program for over achievers during high school (I later found out that it's simply a recruiting tool for the hosting college and each and every participant has a "file" that catalogs EVERYTHING we do while there, all our answers, our pecking order relative to peers, etc.)... In one of the courses, we had a thought exercise with the land of "omelas"... the premise was that everyone in the entire land was happy, but for a single unfortunate soul who was required to be shackled in a dungeon, against his will. The happiness of the land was predicated upon this single person being detained and if he was to ever escape, then the land would fall into misery and despair.
The vast majority of participants (in fact, everyone but one) demanded that this person be set free and the land become unhappy. My reasoning was that if we can implement any type of society where only a single person gets shit on, then we'll never get a better system... our best laid intentions combined with the fullest extent of our understanding will still make a significantly large portion of the population miserable and no less constrained, albeit with a slightly different appearance (e.g. glass ceiling). [obviously at some point (early on) the societal cost gets to be too significant to implement such a system, but the thought exercise was flawed in that it was limited to a single person... humans work on spectrums, not absolutes].
That being said, most of the kids were completely full of shit. It was insincerity at best. The fact is that there is no "omelas" narrative in the real world... instead, the question is whether you want to shackle 15%, 25%, 50%, etc. of the population... not just a single person.
Most of the kids answering these questions graduated with foo foo degrees and are now jobless and thinking deep thoughts about being unemployed. These same kids now demand that all prudence be punished... that those who would dare put their ears to the tracks to listen for the train coming ought be punished for their diligence. When their happiness and benefits are actually threatened, then entire swaths of the population should feel the shackles so to speak... complete idiocy.
I don't think it's even fair to say that the road to hell was paved with good intentions... rather, the road to hell was paved with the same type of subconscious, knee-jerk reactions to age old problems. In the end, the real world demands that if you want your confiscatory scheme to have any credibility, then make for damn sure that you do not benefit from it at others' expense... otherwise, it gets impossible to logically justify your position.
So did anyone ask why that one person was shackled? Perhaps he was a murderer or a crooked banker whose escape from prison really would make the rest of the people miserable.
A key detail... it was presumed that the shackled was completely innocent.
That's not a "crash" in EURUSD.
"ask" lol
Drop the EUR/USD to zero, then Germany can export an infinite amount of goods.
You put money into a bank, and they charge you to put your money at risk of complete confiscation at a later date ! What a great deal ! BRILLIANT !!
Its not your money, its theirs.
That simple concept escapes so many.......even here on ZH.
They printed it and you only worked for it. It's only fair that they can do with it whatever they want.
simple concept of time = labor = money and how foolish we are with the time that "waits for noone".
negative deposit rate will be the death of the traditional bank
"Traditional" banking ended when Glass-Steagal ended.
No big news. Real rate is already negative. Banks are already skimming deposits. Bill Gross estimated by at least 2% per year. That's 10% of your deposits since 2008.
How truly dense is this man? The idiocy that comes out of his mouth is truly mind numbingly incredulous
THis is a surprise? NIRP Bitches.
Feels a bit more like a purp NIRP fonz.
pods
Looks like the mattress manufacturers will have a "boom year".
Golden mattresses.
Whay keep cash in a NIRP world with real(hidden)inflation.
Sealy Bank of Savings and Occasional Moans(for you married fellers)...
Especially the Spanish ones with a built in safe.
Rates are already negative in real terms so why not nominal as well? Gold and silver looking better each day.
BULLISH (for PMs)!
Must. Smack. Down. Precious. Metals...
I guess that means "ALL IN"
end game
CAPITAL FLIGHT
Now they say... GOLD DOESN'T GIVE YOU INTEREST!
now.... IT SURE COSTS LESS TO KEEP IT THAN PUTTING IT IN A BANK!!
Guess what will happen next...
Where is "Citizen" Ghordius when we need him...
this thread is no fun at all without some kind of token defence of the |UE|OW|ZONE
Oh man.. Anything to scare savers into buying moar stocks!
Get ready, Paying for the service of projecting your wealth forward in time
will be the new meme.
Well done, douchebag.
You just created the greatest stampede to physical PM's in the history of Europe.
These evil scumbuckets grow bigger testicles daily... Until they will be castrated like they have done to the world...
Gold might not earn interest, but it sure as shit is gathering it.
I asked my Silver what "negative" means, and it said "I don't know"...
ye olde fx whipsaw. i love the smell of napalm and muppets in the morning.
Draghi, "YOU DON'T GO AROUND THROWING MONEY OUT OF A HELICOPTER, IN EUROPE WE DON'T HAVE CAPITAL MARKETS, WE HAVE BANKS"
Oh, it burns, Ben, it burns!
Be careful, Gubmint Boyz. If sheeple get conditioned to seeing fiat as mattress stuffing, door jambs, etc, rather than as 'money', could get them thinking the wrong way...
Easy fix: Pass a law that makes holding more than $10k in cash a felony. They can call it "The Terrorist Finance Control Act". Trot out a few of the wounded Boston victims and you're golden.
You fucking bureaucrats think you can try to force me to spend my savings on useless trinkets produced by your faltering economies, force me to buy your toxic financial assets, or force me to bail-in your insovlvent banks by making savings rates negative? Who the fuck do you think you are? I will promptly convert ALL of my savings into an alternate form of money. Your fiat trash can burn. Cope with that negative consequence, pricks.
i.e. Spend it on something. Which is exactly what they want you to do. The only way you could prevent that is by taking it out as cash and sticking it in a safe.
You're saying they want me to convert my fiat into precious metals (which is what I meant when I said an alternate form of money)? BULLSHIT.
That is not spending. It is converting counterfeit money into real money. They do not want you to do that because it challenges the fiat money hegemony.
They don't care WHAT you convert your fiat into. To buy anything, you have to convert your PMs back into fiat (at least that's how they see it). As long as 99% of people are trapped in the fiat trap, they couldn't care less what you do. There's time enough to deal with you (and me) later.
When you can go into Home Depot and buy a load of lumber with a handful of 1 oz. silver rounds, then they might get a little nervous. But I can't do that around here...
Might happen in Arizona and Utah. It would be nice if happened some place I actually wanted to live.
If you really think about fiat money, there is no need for countries that operate under a fiat central banking system to issue debt so they can "borrow" money. Such borrowing is only a requirement if a currency is tied to the gold standard. A currency that is backed by nothing and created from nothing need not create fictitious debt,
Amen
They could of course go full MMT and just spend money into existence, or issue trillion dollar (or Euro) coins. But this would cut the banker Cartel out of the profits on the carry.
Gold gets bashed because it doesn't pay any interest. But at least your stack doesn't ever give you Negative interest rates! Nor will your stack ever be used to bail out a failed bank!
Why keep you money in the banks anyway? Interest rates are low, banks can fall over any time and the Troika can confiscate your money when it pleases them. Why people have not removed their savings from the banks in droves is beyond me.
In the U.K. if you have over a certain amount of cash or gold in your possesion you have to prove where you got it from or they take it.
In the U.S., if you're found to have large amounts of cash and cannot account for its source, you're facing IRS audits going back years and/or drug trafficking or money laundering charges and civil fortfeiture proceedings.
Thank Dog we have the right to Due Process here!
P.S. Unlike the rest of the world where gold and silver are considered money, very few Amerikans seem to be aware of that odd historical fact, so very few people are ever queestioned about their gold or silver. Big stacks of paper money are much more suspicious to LEOs here, for now at least.
stock markets will go through the roof, superMario will do everything for it.
Gold +25 on the news.
Maybe this is just a misunderstanding. "Draghi says ECB has open mind" should probably read "ECB's Draghi has open head." Such a hole in the skull should suit him well, because finally some oxygen would be able to reach his brain ....
Yeah they are so open minded their brains fell out.
Draghi is talking about depositors at the ECB. He is trying to get the banks to invest the money that the ECB has lent them and reserves that they have accumulated, as opposed to letting it sit idle at the ECB. If the ECB charges negative rates they/banks will pull the money out and put it to work. ( hopefully to stimulate the European economy)
Just like in the US where banks invested received bailout money and QE into the economy. Oh wait.
You're probably right. They will just gamble with it.
Probably yes. You know that gambling is just trying to get a quick fix and a fast high. Then you want some more, till you're hooked.
How are the banks gonna do that when they are utterly and totally INSOLVENT!
Some of the biggest corps in the EU have the privelege of depositing money at the ECB. You know, companies like Siemens. These companies are going to just pay the storage cost instead of moving the cash to an insolvent EU bank.
Why loan it when it's much safer to "invest" it in the un-sinkable Spain or Italy government bonds that yield 4%?
The Fed is next.
The Fool
Five thousand crowns I’m holding, in my hand!
MephistophelesYou two-legged wineskin, so you still stand?
The FoolI’ve had my luck, but this is the best yet.
MephistophelesYou’re so delighted: look, it’s made you sweat.
The FoolBut see here, is it truly worth real gold? 6165
MephistophelesYou’ve there just what belly and throat are owed.
Now I get it. The governments of Europe will not only get to borrow interest free, they will also get to borrow from the people and charge them for the privilege.
It truly is death by a thousand cuts...
Death by a thousand paper cuts.
I can just see a future episode of Storage Wars in my mind where they will be opening storage spaces only to find boxes full of fiat abandoned by their owners.
You know they call it Fiat money because it depreciates like a rusty Italian car?
Now I know why the Government is always advertising for you to save for your retirement. So they can take it from you. Fuckers!