What's up with Negative Interest Rates?

     First of all, the Federal Reserve Bank (Fed) is not what it says it is.  All they do over there is step out onto a playing field set by fiscal policy, and cope with the game forced upon them, or try to.  These days, Barry Soetoro runs around spending money like a drunken sailor, so monetary girls and boys have to slog behind and cover the tabs he's run up.  And not much else, we're afraid.

     Their totalitarian seizure of the treasury bond market, disinforming the public with deceptive terms like "QE" this and that, has been the recent method of choice, meaning Communist Dictator Barry isn't kept in check by onerously high interest rates that free-markets once used to chop-block the capitalism-abiding presidents of the past when they got out of line.  The Fed's monetary politburo has seen to that, talking heads and them refuse to look in that direction, and the nincompoop electorate, dumbed down by an education system designed to keep the worst among us thinking he/she isn't actually a worthless piece of sh!t, doesn't know what to make of anything unless f#ck!ng Hollywood or somebody spells it out for them.

     Second of all, our one and only economic problem, the mess Wandering-Willy Clinton left us with way back when, still goes unaddressed and unacknowledged by pretty much everyone in public life but the great Donald Trump.  You can't demolish the demand side of the domestic economy by sending all those high-paying blue collar jobs to other countries, driving down the need for all those lost white-collar supervisory, management, and labor union jobs, obliterating all the multi-collared support jobs in the surrounding infrastructure and beyond, and expect aggregate buying power to hold up as if there's nothing f#ck1ng wrong with this.

     Given both points, it's easy to understand why monetary stuff has been nothing but a total failure for years on end.  Barry's still throwing the next generation's money away and Wandering-Willy's "outsourced" jobs never came home.

     Now the Fed's next pathetic effort could be popping up over the storm-tossed monetary horizon: negative f#ck!ng interest rates.  And why not?  They've never been tried before.  Not in anything resembling a full-blown attempt in a failing first world economy, they haven't.  Sounds like just the kind of thing American commies look for, based on the recent record: a f#ck&d-up stab in the f#ck!ng dark.

     To us, negative rates would mean we pay the bank to hold our money, instead of the other way around, which is what we're used to.  Current chatter has negative rates limited to bank payments to the Fed, another wretched idea, owing to the absurdity of thinking anything positive can be done without 1) taking Barry's credit cards away and 2) bringing those lost jobs back.  And if the bank/Fed negative interest rate thing doesn't throw us into a total depression, is there anyone out there who doesn't think Big Brother will be making you and us pay our banks neg rates next?

     Thing is, nobody has any idea what the ramifications are.  There's no history.   Thinking through this, giving it lengthy consideration, neither do we.  Holding cash for us is a service, but historically, banks haven't had to charge the public for it because 1) they were able to make money loaning our balances out and 2) they competed for our money.  That all ended once banks started selling their loans to third parties.  And, larger customers have always had to pay for banking through things like compensating balances.

     Beyond that, we can't help you out.  Where it would all end is anyone's guess at this point.  However, why someone would even think about going there, basically deep into some theoretical abyss - instead of facing up to the realities raised here, consequences of past ill-considered government action - is very disturbing indeed.