The Rising Influence of Rising Affluence

[DewDiligence]

That’s quite a narrative, LOL.

I’ve said all along that you cannot put negative interest rates on consumers until you eliminate cash. Otherwise, savers would just withdraw cash from the banks and stuff it in mattresses to avoid the negative rates. Implicitly, the European Central Bank (ECB) seems to agree.

Interest rates on some government bonds in Europe are negative because of supply and demand. Large corporations cannot store millions of dollars of cash under a mattress.