Friday, June 6, 2014

ECB imposes negative interest rate

5 June 2014

 The European Central Bank has introduced a raft of measures aimed at stimulating the eurozone economy, including negative interest rates and cheap long-term loans to banks. It cut its deposit rate for banks from zero to -0.1%, to encourage banks to lend to businesses rather than hold on to money.  The ECB also cut its benchmark interest rate to 0.15% from 0.25%.  The ECB is the first major central bank to introduce negative interest rates.

Howard Archer, chief UK and European economist at IHS Global Insight said: "Despite being widely anticipated and in some quarters criticised for occurring too late, it is still a bold and unusual move by the ECB to take its deposit rate into negative territory."   "There has to be considerable uncertainty as to how effective negative deposit rates will turn out to be," he added……To Read More….

My Take – No matter what’s said this is in fact the confiscation of people’s money by the government simply because they “need” it to continue their failed socialist policies, i.e., legal theft!  Margaret Thatcher was right.  Socialism always fails because eventually you run out of other people’s money.  And make no mistake in thinking this "can't happen here", because this kind of thinking is already permeating Washington.  I have to think everyone in government must be insane!

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