How Negative Interest Rates Will Turbocharge The Migrant Crisis

Tyler Durden's picture

Submitted by Nick Giambruno via InternationalMan.com,

In the 1989 Batman movie, the Joker (played by Jack Nicholson) showers a crowded Gotham street with free money.

In the scene, it looks like it’s raining hundred-dollar bills. The people love it. Little do they know, the money is actually a trap. Once the Joker has lured them into the street, he unleashes poisonous gas.

I think the latest gimmick to stimulate the economy is pretty much the same thing. It’s one of the most absurd ideas I’ve heard in a while. And that’s saying something, considering the outrageous schemes our economic luminaries have recently come up with, like…

  • Faking a space alien invasion to help stimulate the economy.
  • Minting a trillion dollar coin.
  • Negative interest rates.
  • Banning physical cash.
  • Cash for clunkers.
  • Increasing rounds of money printing, euphemistically called “quantitative easing.”

These ideas would be comical if people in power didn’t actually take them seriously. But they do.

It’s the same bad medicine the economic witch doctors have been prescribing for years. With a track record like this, it’s hard to imagine they could come up with something even more ridiculous. But they have.

This latest gimmick goes well beyond the absurdity of their previous ideas. It’s verifiably insane. And the scariest part is, this dangerous idea is gaining currency. It’s spreading across the world like a smallpox outbreak.

Helicopter Money

Politicians and establishment economists call this scary idea “a basic income.” I call it sheer lunacy.

It’s where the government gives you money just because. There’s no requirement to work or even display a willingness to work. You could sit at home all day, watch TV, and still get a check from the government.

Simply put, a basic income is “free” money the government hands out to everyone unconditionally.

European politicians are heavily pushing this policy.

  • Finland wants to pay its citizens around $1,000 a month.
  • The Netherlands and the U.K. have also proposed dishing out free money.
  • In Switzerland, there’s a proposal to hand out around $2,800 a month to everyone. This one is surprising since the Swiss are generally sensible about money.
  • The basic income virus has also infected Canada, which recently announced a pilot program in Ontario.

It’s just a matter of time before the idea gains traction in the U.S. In fact, U.S. central economic planners are already discussing it.

You might recall former Fed chair Ben Bernanke’s nickname, “Helicopter Ben.” He got the name after he spoke publicly about using helicopter drops of money to “stimulate” the economy. This is just another flavor of a basic income.

Whether you call it free money, a basic income, or helicopter money, the idea is spreading. It’s the next potion the economic witch doctors will use once their latest scam—negative interest rates—not only fails to cure our economic ailments, but predictably makes them worse.

No matter, the idea will be politically popular. Who would protest free money?

And, once a country adopts a basic income, it would be next to impossible to get rid of it until the system collapses under its own weight. Who would vote for a politician that stops (or even slows down) the gravy train?

The Joker used free money to lure the people of Gotham to poisonous gas. Now real world politicians are using the same trick. They’re using free money to lure the masses into perpetual dependence on government.

More Problems Ahead for Europe

If Europeans think they have a migrant problem now, just wait until they institute a basic income.

It’s obvious what will happen…

Once European governments start handing every person thousands of dollars in free money each month (more than many in Africa make in a year), everyone will be scrambling for Europe.

A basic income is a sure recipe for economic disaster and increased cultural tensions. It’s an environment where blowhards and demagogues flourish. Unfortunately, this has happened repeatedly throughout Europe’s history. Once again, it’s going to lead to some very bad things.

I think a basic income will greatly accelerate this recurring trend.

Without a basic income and other welfare benefits, immigrants are usually skilled and the very best of people. But the average European will surely forget that once free money draws in the world’s riffraff.

This is why, although the financial effects will be severe, the sociopolitical ones will be much worse.

Here’s the bottom line: All you can do is protect yourself from the consequences of all this stupidity. This is a big reason why I think everyone should own some gold.

Gold is the ultimate form of wealth insurance. It’s preserved wealth for thousands of years through every kind of crisis imaginable. It will preserve wealth during the next crisis, too.

Unfortunately, most people have no idea how to prepare for the next economic collapse…

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HectorCamachoTrump's picture
HectorCamachoTrump (not verified) Mar 16, 2016 7:17 PM

"Once the president lures the illegal aliens into the street, he unleashes poisonous gas."

This is one of the platforms of my election talking points.

Vote for me.

Normalcy Bias's picture

Negative Interest Rates Turbocharging the Migrant Crisis is probably the IDEA!

BarkingCat's picture

You. Cannot. Print. FOOD!!!!!

 

Fucking retards.

Emeraldous's picture

Stop and think. Food is the only resource with exponential growth. one seed bears many seeds.

samsara's picture

Not if you buy them from Monsanto, ADM, et al
You must buy them EVERY year. If you save some you WILL get arrested.

Many have been convicted so far.

I grow my own, save my own.

But I agree with you, chickens, pigs, and beef too.

truehawk's picture

PFM

Take a look at the gobal aquifer depletion. 

Ariable land and potable water, and the absence of gullywashers are the constraints. 

We only have to miss one harvest now, and we will, SOON unless we deploy the various non-Monsanto GMOs developed to be blight and fungus resistant and salt and temp tolerent. 

We will Remember the Irish potato famine as good times.

That is unless we curb pop and get on the stick about global warming. 

True Blue's picture

Read Malthus.

Food growth is not exponential, as it still requires acres of Good soil, fertilizer (made from Petroleum) pesticides (also made from petroleum) water, seed, labor, etc.

Human food growth expansion is an arithmetic growth; 1+1+1+1

Human population growth (if not taxed and enslaved to the point people cannot afford kids) is a geometric expansion, 2X2X2X2

Human stupidity growth is an infinite expansion -like the big bang... and it usually ends the same way; a Big bang...

Gregory Poonsores's picture
Gregory Poonsores (not verified) Mar 16, 2016 7:25 PM

Bring it on, everyone in Africa and the Middle East can move to Europe and all the Europeans can move to Africa. Dunno who'd want to move to the Middle East though.

https://www.youtube.com/watch?v=FTQbiNvZqaY

BarkingCat's picture

and in few years the Africans would turn Europe into complete shit hole and start dying of starvation and cold winters.

Middle Easterners would probably be OK. They actually managed to have thriving civilizations in a pretty harsh environment.

 

Chuckster's picture

"Stupidity must be rewarded!  This is a basic law of nature"....I think Al Bundy said that.

Son of Captain Nemo's picture

If Europeans think they have a migrant problem now, just wait until they institute a basic income.

It’s obvious what will happen…

Speaking of which...

More proof of the "engineered trouble makers" courtesy of the Anglo-American Zionist contingent among the genuine refugees! 

If chaos was the only goal in destroying what was the shining star economically of the Communist experiment before U.S. military intervention in the 90's just like Iraq, Libya, Syria, Yemen and Afghanistan with no "Marshall Plan" in tow to be implemented deliberately of course...

Mission Accomplished!!!


Herdee's picture

Turkey should get rid of their refugee problem and send them all to Europe.Germany is the prize if you don't let Turkey into the E.U.And they thought that their problems with Greece were covered up by dishing out free moula there as well.Draghi,you just got started,it's called blackmail.That's the present you get from the NeoCons in Washington after their destruction in the MiddleEast.Now suffer you basturd.

Lost in translation's picture

Author says acquire gold.

Ron Paul says "owning gold won't be enough."

Who's right?

hooligan2009's picture

there isn't enough gold to serve as a store of value, so grab it while you can so you can wheel it out in ten years.

worked well when you only needed 100 million coins globally back in the 1700's and 1800's, each one worth a ducat or a doubloon and the world population was half a billion, but now, there are 7.5 billion people who could use gold.

if you need to exchange value, as a result of a breakdown in the global monetary system silver is much better

fredquimby's picture

if you need to exchange value, as a result of a breakdown in the global monetary system silver is much better

Says who? Personally in a collapse situation I would take .22 rounds over silver anyday.

RagnarRedux's picture

British Medical Journal: "Refugees" 66X More Likely To Have Psychotic Illness

http://newobserveronline.com/refugees-66x-mentally-ill/

Belgium: Invader Terrorist Shootout

http://newobserveronline.com/belgium-invader-terror-shootout/

Paris: 4 More Terror Arrests

http://newobserveronline.com/paris-4-terror-arrests/

hooligan2009's picture

hahaha - let's see if I have it straight

import a few million refugees then pay them to borrow money?

you can't make this shit up - you could exchange a bunch of chimpanzees for central bankers and get a better, random, outcome

https://www.youtube.com/watch?v=B1voj6H8CHY

(my grandma anf your grandma kuroda, yellen and draghi)

truehawk's picture

Nice try Asswipe.

Gold is the oldest scam on earth. 

It has nothing to do with the amount of goods and services, knowledge and labor applied in the eoconomy, just sit on your gold and it will increase  astromically in value because of its rarity ( and the labor and enterprise of others.)  It's helicopter goods and services, IP and labor. 

Or so the Goldbugs will tell you.

Any fixed money supply makes each incremental unit of increased ;production worth less, because more goods are competeing for the same amount of gold. 

It is unearned income for the Goldbugs. 

That and fractional Reserve Lending that allow the Rothchild (and Federal Reserve) banks to create money of account in practically any amount they wish, as long as they keep it to mere billions they loan to themselves at zero or near zero interest rates and within the families of the top .1%

This type of banking  is what Andrew Jackson shot 18 men to prevent. No wonder Jackson's name is in ill repute while the Rothchil flunky Hamilton is celebrated by a Broadway play. 

Franklin introduced money into the economy by printing money to cover the going rate fair market value of what ever the Continintal Govt Needed, and it work so well that America was the wonder of the  Age, until George shut them down with the Currency act of 1764, which forced the Colonies to use only English Gold as payment in private transactions. The Clonial economy nosedived when the thing was imposed.

AND QE is MONATARY Policy wherein the Fed bought the bad debts of the banks at par value, in effect, supporting the investments of every man woman and child of the top .1% to the tune of 25 million apiece or there abouts.   Yeah Helicopter Money for them is FINE!!!

Fact is that the deficit is money of account, created by popping into existance a sum of money and a debt insturment . If the deficit were paid off, like a election and a positron they annilitate each other. There would be NO liquidity in the economy other then the few tens of billions in cash that circulate. 

Now as a former farmer I can tell you that it is real hard to consider those who seem ablebodied and laze around anything other than lazy louts. But they are customers and what any business man/person needs is customers that can pay.  And the fact is that when Canada did a guarenteed income some years ago, and when Indian Tribes with Casinos have done this, it has worked well.

Though we should use it to put them to work if they can work. I favor a national Agricultural Service. Nothing builds character like digging postholes in 95 Degree heat and 95% humidity, or bucking 20,000 80lb bales of hay within a couple of days. Too many of you pussies have no idea what a days labor is like, and  Thor knows we need to rebuild the infastructure that the obstuficating slime in Congress have let languish in favor of tax breaks for their favorite patron.  

malek's picture

Hey dumbfuck,
that things get cheaper due to technological progress and resulting increased production is the normal of things.

You need to get over your Keynesian brainwashing that deflation is always a bad thing.

DragonWings's picture

The author is a moron, really.
I am a hard core capitalist... Each one of my people is responsible to produce 10,000 chairs a year... Yes 10k chairs everyone of my guys.
Last dec. I visited a neighbor state of the art plant a subsidiary of Bosh, less than 1000 people making 1,000,000 washing machine a year...

With increasing automation and less quality employment available...
Unemployment will keep raising. Early industrialization had the same problems, technical advancements always provided new fronteers.

Lately however something broke.
In a society with limited resources you cannot think of basic income.
Yet in societies like ours producing more than we can possibly consume, it is an alternative that might not be too bad.

I never worked for money. I know many people that would keep working even if they Didn't had to. So? If you are satisfied with basic income... You can eat and live.
If you want more, you just find yourself something to do.

As long as the basic income is toward everybody, it is not a redistribution, and would be totally doable.

But again, it cannot be a redistribution, the basic income has to benefit everybody to be a workable system.

The author is a looser, a moron, probably one of those guys you do not want managing your money or even giving you advices...
At lleast not related to the economy...

;-)

fredquimby's picture

This author is indeed a blinkered moron.

"There’s no requirement to work or even display a willingness to work. You could sit at home all day, watch TV"

says he like nobody has had that thought of this before. SO FUCKING WHAT if people want to sit and watch TV all day. That's the whole point. But would you?

It may be "helicopter money" in some folks eyes, but I prefer to see it as giving everyone the power to say NO.

And that is scaring a lot of people.

 

 

jammerjoh's picture

What bothers me most about diatribes cursing 'free money', is that so many of those offering their point of view never actually produced anything. Apart from venomous articles aimed at denying others the right to share their privileged position.

Most of us have family members who receive food and shelter for nothing. We call them 'pets'. Or 'children'. And we're happy, even grateful to have them around. Many of us may even say they are our 'reason to live', since we enjoy their company. I've been working all my life as a professional, actually producing something that was valued by others, beyond a way to make them filthy rich. We had managers, who managed to make our lives in the 'workforce' miserable, changing tack for no apparent reason, but to make their mark. Right behind them were the 'paper-pushers', who produced 'reports', and 'papers' which were great, as they kept the management busy. Until they left their offices, and acted on those 'reports', which usually meant they frustrated the 'workforce', since those 'reports' had one thing in common: They lacked even basic knowledge of the product, how it was produced, and what the customer expected. But it drove down 'costs'. Apart from the costs of their own inflated positions.

Since time immemorial, people sat around doing nothing useful. Entertaining the King, or serving at his court. Today they work for television, in the film industry, or at McDonalds. But the real waste went to wars being fought by the King. Or, today, 'bombing the sh.t out of brown people', as George Carlin used to say. Usually supported by great 'reports', written by people who had nothing to do all day, but fantasize about increasing their wealth by stealing it from others through power-grabs, regime-change operations, or financial tricks, barely covered by the law, but immoral anyway.

Negative interest has me worrying too. But offering people a 'basic income' if only to keep them from wasting time and money on military adventurism, and schemes to get rich through Ponzi-schemes, HFT-voodoo, and creating 'financial products' that are a scam, does appeal to me. Especially in a world where the REAL work will be done by robots and automated systems, turning all of us into 'pets', and 'children', playing and learning all day. With the occasional moonlighting for those who need more than pocket money.

MoHillbilly's picture
MoHillbilly (not verified) jammerjoh Mar 17, 2016 8:13 AM

What a sunny happy place you live in, where everyone will spend their " free " time studying art or learning a second language. Children and pets have everything taken care of for them and yet the get into more trouble than you can believe if left  unattended and bored. Imagine the shit millions of grown, bored , emasculated men can get into. Work on it's basic level is not just about the money received it is about shouldering the responsibility of providing for your self and others, it's about self-worth. Do I even need to bring up what has happened in the inner cities were Uncle Sam has replaced fathers with checks?

jammerjoh's picture

MoHillBilly, with all due respect, but you seem to be missing the point I'm trying to make. A 'basic income' would be enough to keep you from starving, or dying from missing out on basic needs, like having a shelter to keep you dry and warm enough to function properly. And if you want to see adults going berserk, try starving them, while kicking them from their homes, replacing them with industrial robots, or exporting their jobs. Granted, that generates plenty of new jobs for those in 'law enforcement', and taking care of 'forced labor' slaves in 'privately owned' prisons. But as Adam Smith taught us, that is about the dumbest thing a state could spend tax-money on. Apart from war, unless needed in self-defense.

If basic income would be tied to 'citizenship', it would actually deter the influx of people from outside the country, since wages for these groups would drop, if people who started with a basic income needed only a limited amount on top of it to improve their earnings. Such a system is generally labeled as 'too expensive', but it is actually considerably cheaper than the complex system of 'allowances' in place in most European countries today. Since all those engaged in distributing these 'allowances', studying improvements, developing 'models', producing laws, checking on people with an 'allowance', writing articles about it, setting up 'Human Resource Management' at companies so as to comply with applicable laws, and all those supervising and managing these activities, would be on the 'dole' too. Or doing something useful with their lives.

The other thing is, that Europe is being flooded by immigrants as it is. We provide shelter, food, education, and a ticket back home if they are considered to be immigrants with 'economic' reasons to come and visit us, with the intention to stay. The others, considered to be 'refugees', are allowed to stay. All on our expense as tax paying citizens. After we paid for the weapons, bombs and 'rebels' that made them refugees to start with. And yes, weapons and bombs are 'products' too. Just like tents and the food we provide. Yet, like I said, Adam Smith wrote his 'Wealth of Nations' exactly to make people aware that this war-mongering was the main reason Wealthy nations went down the drain.

webmatex's picture

Yes the third world would pour in for their share of free money and millions of Europeans would probably live in Thailand or Philippines for much of the year - E1000 per month is enough to guarantee the good life in the sun on the beach with ample supplies of weed and women.

Bring it on.

But wait i've been retired since 2000!

richdemetri's picture

Actually if you look at social security spending in most wealthy countries, minus health care, and divide it by the number of people, it's about the same amount of money as being proposed by the basic income people (except in switzerland, where it's a lot more).

Having a basic income would not necesarrily discourage people from working. Can you live on 250 euros a week? Yes maybe. But you can't do much except sit around all day. It's not enough and most people will want more, hence they will work. It may have the effect of slightly increasing the min wage, it will def decrease crime. 

In Australia up until about 20 years ago, they essentially had this. If you were unemployed, they sent you a cheque, no questions asked, no pretending to look for work, no courses, no meetings with social workers like now. And the economy was fine, people still worked. People didn't quite there jobs so they could have $200 a week, why would they when they were earning $800 or more already.

And it's surely a better way to spend money than war, is it not? Trillions of dollars flowing into the pockets of the rich weapons companies and their shareholders. And then the war is over and trillions more go to the constructions companies who get the contracts.... this is the real tragedy.

 

maltafathead's picture

I'm not suggesting it's privileged to live on social security in the UK or Australia or NZ or Canada or wherever. However, your points about Australia missed out on some key info - while it sucks to be a person who genuinely wants to use their skills and talent at meaningful employment but can't get the opportunity, there are also plenty of people including the usual 'asylum seeker' types who came under Rudd who will never get off their duffs to try and do anything.

For a start they are from the 3rd and 2nd world countries in a first world country they should never have gotten residence in where the money via an ATM courtesy of the government has an absolute disconnect with where it comes from and indeed any sense of obligation. Do Australians and others really want to encourage more of this mentality? Plenty of Africans and Middle Easterners send Australian taxpayers' money back home through their own 'banks'.

Then there's the custom, fairly widespread, of classifying lazy Mid Easterners/Afghanis from Muslim cultures with no sense of work ethic and hostile to making the changes they should to live in western societies, as needing 'disability pensions'.

This is one of the most corrupt benefits ever - and while there are enough Australians whose ancestors were in the country from the 19th and 20th centuries milking it, too, why the hell should these other people whose families and religion have contributed absolutely zilch to the traditional British and European values of countries like Australia make the disability pension their personal savings account and excuse for not working?

A disability pension and an old age pension are worth around 2,000 bucks per month and don't forget the benefits such as rent relief, free or reduced travel fares, reduced utilities rates etc. And no tax. Why the fuck should more of these schemes be introduced for more of these 3rd and 2nd world 'gimmes' especially as they are changing our societies for the worse by their mere presence - an endless strain on resources, providing the impetus for more surveillance of the rest of us etc etc.

maltafathead's picture

Some of you are missing the point already. Including the writer. This is not about 'free money' for the prudent, thrifty, functional and self-made people. Self-made people here includes those born to affluent circumstances who didn't use them as the excuse to waste their life, their advantages etc.

Do you really think these toxic creatures that constitute the elites and politicans who are destroying economies, lives and civic western values are going to give 'free money' to those who would use it wisely or who have actually supplied it through their labour, their taxes, their services and their businesses that employ people without holding captive taxpayers to ransom?

It's just going to be like the non contributory benefits systems of countries like the UK and Australia. Those who contribute actually don't benefit - the wealth that they saved and built up by deferring instant gratification and avoiding a sense of entitlement will be stolen, sorry, transferred, by governments to those who already have received free money but have an insatiable appetite for it especially as there are no strings attached.

This is the same old, same old. There is nothing new under the overreaching state's sun. The same system that punishes the independent and the savers by giving them little to no interest, double and triple taxing the money they worked for, and further insulting them by ringfencing their savings while transferring their taxes to people who have blagged their way into the country, feel entitled to western money by blaming our countries for their own centuries' old feuds, limitations and internecine warfare, and by their presence displace the citizens from housing, hospitals, other medical services, and other resources.

To make it worse they never repay what they take through taxes or any voluntary work for their new societies. They have been encouraged by the non progressive leftists in our societies to take what they want and have others pay for it again and again. The politicians who allow this have their own financial riches and perks safely secured. They want the newcomers to vote for them and their kind. In some cases they are also deliberatelu watching an experiment unfold and will live in their taxpayer funded gated communities and different housing locations while the rest of us have to live with the consequences of what they encouraged to come in.