Bankrupt Governments and Negative Interest Rates

Gigantic, logical disconnect mixed in with economic dogma

Bankrupt Governments and Negative Interest Rates

Image Credits: 401(K) 2012, Flickr.

by ZERO HEDGE | JUNE 24, 2015

The United States is bankrupt. Even officially, its debt-to-GDP ratio is well above 100%, the economic/financial point-of-no-return. Unofficially, its total debts-and-liabilities now exceed $200 trillion – ten times as much as this (relatively) puny economy can service, over even the medium term. The U.S. is not merelybankrupt, it is in a financial state unique to the Western governments of the 21stcentury: “ridiculously bankrupt”.

The United States government has never, in its entire history, paid less interest on its debts. Consider the absurd perversity here. Back when we had a rational/legitimate (and solvent) economic system, financing operated on a very basic principle of risk: the greater the risk of default, the higher the interest rate demanded by lenders. Obviously the highest rates of interest would be required with respect to any insolvent/near-insolvent debtors.

This principle is merely elementary common sense, and used to be an automatic reality of lending/borrowing. The fact that readers even need to be reminded of this basic principle indicates how far divorced from such rationality our criminal/fraudulent system has become. In the Wonderland Matrix, themore-bankrupt that a (Western) government gets, the less interest it pays on its debts (unless that nation’s name is “Greece”).

The nations of the Eurozone were also rendered hopelessly insolvent after the Crash of ’08, following the fraudulent “bail-outs” of our ultra-criminalized Big Banks. Shortly after that (i.e. shortly after these puppet governments surrendered their sovereignty), they were allowed – by their Masters, the bankers — to pay the lowest-rates-in-history on their debts, too.

Roughly seven years have transpired since then, seven years of piling more and more debt onto already-bankrupt regimes, and in which direction have Euro interest rates gone? Down. Lower and lower, first matching the insane/criminal “0%” level originally instituted by the U.S., and now even lower than that – into “negative territory”.

So-called “negative interest rates” are nothing less than open fraud/crime: borrowers literally stealing the money of lenders, rather than paying them interest on their debts. How does the equally criminal Corporate media characterize this naked theft? This from “The Economist”:

The boldness of the move to negative interest rates…

Indeed, it is certainly “bold” when the (supposedly) sovereign governments of once-legitimate Western regimes proclaim they are going to start stealing money from any/all who lend to them. How is it even possible for these governments to engage in such crime and perversity? Who would ever willingly lend to an avowed Thief?

The answer (of course) is that no one would ever lend to such a Thief, and it’s been several years since these economically (and morally) bankrupt regimes have had any bona fide “lenders”. What (they) we have instead is an openly fraudulent Ponzi-scheme where these bankrupt regimes claim to be “buying” each other’s debt.

None of these Deadbeat Debtors ever “pays” its debts, in terms of ever retiring one penny of the actual debt itself. Rather, these corrupt, Ponzi-scheme regimes simply continue to issue more and more and more of their worthless IOU’s, and then use these worthless IOU’s to “buy” each other’s debts, just to continuepaying interest on these ever-increasing mountains of debt. Try such a cheque-kiting scam with respect to your own finances, and then see how many minutes elapse before someone shows up at your door to arrest you.

However, the paradigm of ultra-bankrupt governments pretending to remain solvent by serially borrowing/lending, to/from each other is only the tip-of-the-iceberg in this surreal, sovereign fraud. What cannot be overlooked is how this insanity factors into the One Bank’s overall scheme of economic rape – i.e. stealing any and every penny of wealth possessed by the Little People.

While the borrowing/lending by our governments is now nothing but a perverse, financial sham, near-zero (and now “negative”) interest rates are a very real economic crime-against-humanity with respect to ourselves. To understand this, we must first wade through more of the perversion of economics from the Corporate media. More from The Economist on low/negative interest rates:

When an economy is struggling, it is standard practice for a central bank to cut interest rates. That makes saving less attractive and borrowing more so, boosting the amount of money being spent and kick-starting an economic recovery. But very low inflation can make a central bank’s life harder…

Most readers will not have noticed the gigantic, logical disconnect mixed in with this economic dogma. This is because illustrating (and understanding) the disconnect requires journeying to the now-distant past, back to when we had legitimate economies.

Back then, nothing was (is) more inflationary than low interest rates, themselves. Indeed, back when our economies were legitimate (and healthy) the interest rates of Western governments never, ever even approached 0%. Why not? Because before they ever got close to zero, inflation would begin spiraling higher at such an extreme pace that these governments would be required to immediately (and dramatically) raise interest rates.

Yet, in the Wonderland Matrix, we have these criminal governments imposing their near-zero/zero/negative interest rates upon us, while trying to tell us that inflation is “very low” (even “too low”). This is not remotely possible, so we would know that these governments (and Corporate media sycophants) were lying about inflation, even if we (somehow) failed to notice food and housing costs soaring higher at the most-rapid pace in our lifetime.

This brings us to the economic rape: the rape of savers – the biggest crime of these criminalized interest rates. With inflation (in the real world) at an approximate double-digit pace, but the interest paid to savers now nil (or even negative) this means that savers are raped by the full rate of this punishing inflation. This is an economic crime to which none of us have ever previously been subjected.

In any/every previous era in our history, when we had legitimate governments/economies, any time that inflation was high, interest rates were also high, to bring-down that (punishing) inflation rate. Indeed, this is what we still see all around us, in the (relatively) legitimate regimes of the Rest of the World.

What is the approach of the Traitor Governments of the “free and democratic” West? Lie about the rate of inflation, make no attempt at all to reduce it, freeze interest (savings) rates at zero, and thus allow the bankers to rape our populations for this full-percentage differential. That differential is the difference between what we lose on our money (every day) to inflation, and what we (now) fail to recover, in terms of interest on our savings.

With a “savings rate” of 0%, the annual theft-rate from savers by the banking crime syndicate is already at least 10% of our wealth per year. As savings rates now move into totally criminal, “negative” territory, and inflation (inevitably) continues to worsen, this rape-rate will continue to soar higher.

This extreme and rapid cannibalization of all savings/wealth held by Western populations is already intolerable, already an economic crime-against-humanity, and already absolute proof of the treasonous criminality of our own governments. But it gets worse.

As most readers (who are actually paying attention) are already aware, these irredeemable regimes are already rapidly moving to an even more-heinous crime – particularly when considered in conjunction with the current economic rape they are perpetrating (on behalf of their banker Masters). They are preparing to“ban cash”.

Even considered in isolation, no legitimate government (which respected the Rule of Law) would/could ever engage in such a barbaric infringement on the economic liberty of their own population. However, it is when we consider this fascist act along-side our negative interest rates/high inflation paradigm that we see this is nothing less than the worst form of treason by our governments (so far).

Currently, the Little People can choose to at least partially protect themselves from this economic rape. They can avoid having the banks steal their savings (via negative interest rates) by simply refusing to keep their “money” in one of these criminal financial institutions.

Of course this still leaves those people subject to the full ravages of our double-digit inflation. But even here, the most-astute of the Little People can protect themselves from this deliberate, criminal inflation – through converting the wealth they hold in rapidly-depreciating paper currencies into gold/silver, instead.

Gold and silver have perfectly preserved the wealth of their holders for thousands of years (i.e. they are immune to inflation). Conversely, in the thousand-year history of these dubious/fraudulent paper currencies, none have ever managed to maintain more than a tiny fraction of their value (i.e. preserve the wealth of their holders), for even a single century.

As readers were already warned previously, any “ban on cash” would be immediately followed by some form of bullion confiscation. Obviously (corrupt) governments doing everything they could to facilitate the theft of our wealth by the One Bank are not going to allow the Little People to avoid the crime of inflation, avoid the crime of negative interest rates, and maintain possession of their own wealth, simply by seeking shelterin precious metals. Such “shelter” will undoubtedly be yanked out from under us by these lawless, fascist regimes.

These are merely some of the horrific, financial consequences, from the latest (and upcoming) acts of treason…perpetrated by the worst governments that (big) money can buy.

Bankrupt Governments and Negative Interest Rates
Wed, 24 Jun 2015 16:32:33 GMT

Leave a Reply

Your email address will not be published. Required fields are marked *