Bloomberg is reporting that the ECB is considering negative deposit rates to get banks lending & to stave off deflation.
The key reasons quoted being
1. Get Banks Lending
2. Stop deflation
The world’s banking elite has officially gone completely mental.
Let me explain.
Banks/the ECB/Bloomberg for some unknown reason think that if you deter people from putting money in the bank the banks will be more likely to lend money
Lend money they don’t have because they have deterred people from depositing money
Where exactly do the banks/ECB/Bloomberg think banks are going to get their money???
Moving to the second reason
Negative deposit rates to stave off deflation.
Show me someone who wants inflation and I will show you someone who has lent a ton of money to a party that cannot pay back the principle or service the debt and who wants said party to inflict pain on the population in general in order to get that debt serviced.