Bank of Japan institutes negative interest rates

[TReano]

Japan has gone NIRP - basically they have devalued their currency to help exports in a bid to get growth.

China is struggling at the minute, they really need to devalue their currency to compete and this news might temp them to go for it next month. The Chinese people (1bn+) are looking at having some of the value of their savings wiped out by the central banksters. If you knew your country was going to devalue the currency would you try to take steps to protect your wealth?


Can you imagine if even a small portion of Chinese people start to buy BTC?

they had enough time already and obviously they are not buying.

because bitcoin is not based on interest, this mean that you're not actually losing anything if you don't sell with banks instead they are basically stealing your money if you leave those there in their account

with bitcoin you only lose if bitcoin go to zero, much more probable that your bank go bankrupt, if you ask me

nobody will safe bitcoin if it fails while Banks will always be safed.

there are plenty of example of banks and whole goverment that failed miserably, cyprus is not the only example, there is greece too, and i'm sure there are many others

All banks got their bailout beside Banks in Iceland where even Banksters went to prison.
But Iceland is so small and insignificant compared to the rest of the world.

oh okay. There is also Lehman brothers. They are the only big bank which didn't get their bailout because they where the first Bank back then going bankrupt. The Result was the 2008 crises which forced the governments to safe all Banks in order to not ignite the crises even further.

[1713292435]

1713292435

[CuntChocula]

NIRP will be coming everywhere soon, EU and Japan have it now and the ZIRP policies of the UK and the US will soon go NIRP when the economy falters.

This will also be teamed with a ban on cash so no one can escape, i.e. you have to spend your money or face it being whittled away in the bank. Stuff like Apple Pay and contactless credit cards is just the beginning.

NIRP - Negative Interest Rate Policy
ZIRP - Zero Interest Rate Policy

Stock up on Romanian AKs, ammo, potable water, TP & as many copies of Atlas Shrugged as you can lay your hands on

[indiemax]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

Negative interest, never heard about like this thing before. Its better to put money in vault   under the bed ,rather than paying banks to hold money.

This sound like paying bank to guard our money. LOL

Much better idea

[HarryKPeters]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

Lol really? In my country the interest is close to 0% but paying a bank money?
Banks which overcharge us on almost every service they provide?

[LarryHocks]

Wow can they do that? I mean suppose you got a big savings account there, then all of a sudden you have pay big time fees?
This don't sounds fair to me?

[TReano]

Wow can they do that? I mean suppose you got a big savings account there, then all of a sudden you have pay big time fees?
This don't sounds fair to me?

they are most likely not going to have to pay anything on their balance.

Worst case it would be 0.1% per year which is almost nothing.

[MatTheCat]

Can you imagine if even a small portion of Chinese people start to buy BTC?

Yep Bitcoin will spike, as the flow of Chinese convert CNY into BTC, as means of converting to USD....then as the Capital Flightees notice that their aggregate interest in using BTC to get CNY into USD is pushing Bitcoin up, they may hang around BTC for a while instead of converting right away to USD, this will cause a fast n steady rise, which will encourage yet more capital into Bitcoin, for no other reason than looking to ride the bubble....

.....then some 'negative news event' will hit, and the Capital Flightees will rush to exit BTC and into USD, the momentum chasers will look to cover themselves asap....retard holders will hodl, Bitcoin will crash monstrously, but what comes down at a tremendous pace must surely bounce back up at an almost as tremendous pace, etc etc....same thing we seen time and time before.

[Biodom]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

Beware: I am 99% sure that IF neg interest rates are coming, any US institution (Coinbase, itbit, Kraken) will subtract those rates from your bitcoin held there.
We can't have any nooks or crannies...no, Siree.

[Hugroll]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

i just recently heard about the negative interest rates, i dont understand how they expect people to pay to "invest" their money. why would someone pay to hold their money.

[gentlemand]

i just recently heard about the negative interest rates, i dont understand how they expect people to pay to "invest" their money. why would someone pay to hold their money.

Most people are too dim to think outside the box. And to be fair the alternatives aren't that appetising for your average personage. Cash at home is going to make you sweat. Gold's too volatile and hard to buy and sell. And most people don't have any money anyway. As soon as it's in the bank it goes straight out again.

[manis]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

i just recently heard about the negative interest rates, i dont understand how they expect people to pay to "invest" their money. why would someone pay to hold their money.

This is a 'nudge' from the central bank to take your money out and invest it in the real economy.
If you don't have the appetite, take it out and stuff it under your pillow.

[Amph]

Wow can they do that? I mean suppose you got a big savings account there, then all of a sudden you have pay big time fees?
This don't sounds fair to me?

they are most likely not going to have to pay anything on their balance.

Worst case it would be 0.1% per year which is almost nothing.

well it depend on the amount, if i have 1M sitting o the bank, 0.1% is quite a big amount(1k per year)

maybe that my retirement and i need to pay to the 1k per year for nothing, why? utterly stupid, i would remove all my funds from their bank

[Herbert2020]

Wow can they do that? I mean suppose you got a big savings account there, then all of a sudden you have pay big time fees?
This don't sounds fair to me?

they are most likely not going to have to pay anything on their balance.

Worst case it would be 0.1% per year which is almost nothing.

well it depend on the amount, if i have 1M sitting o the bank, 0.1% is quite a big amount(1k per year)

maybe that my retirement and i need to pay to the 1k per year for nothing, why? utterly stupid, i would remove all my funds from their bank

nobody who has 1 mil is going to let it sit in the bank. there are a lot of businesses that people can start with 1 mil and earn way more than 0.1% annually.

[Amph]

Wow can they do that? I mean suppose you got a big savings account there, then all of a sudden you have pay big time fees?
This don't sounds fair to me?

they are most likely not going to have to pay anything on their balance.

Worst case it would be 0.1% per year which is almost nothing.

well it depend on the amount, if i have 1M sitting o the bank, 0.1% is quite a big amount(1k per year)

maybe that my retirement and i need to pay to the 1k per year for nothing, why? utterly stupid, i would remove all my funds from their bank

nobody who has 1 mil is going to let it sit in the bank. there are a lot of businesses that people can start with 1 mil and earn way more than 0.1% annually.

those business are even more risky, this maybe was true in the past, not so much with the current crisis, personally i would not invest my whole retirement in anything that is risky

here i'm not talking about someone being rich that can throw at will 1m like nothing for an investment... i'm taling about a man with his retirement, that 1M is everything he have until he will die

[Amadues]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

also in other country take the money in a bank cost more than the advantage did you get

[jacktheking]

Same here. I will not pay a bank to hold my money. I'd rather buy a safecase and store my money inside. To be honest, I will not look into Bitcoin unless I only have a small amount of money. Simply because Bitcoin is unstable.

[uki]

It's not so shocking.   This has been the norm in Japan for the last 20 years.  I'm sure they have had negative interest rates already within that period.   Negative interest rates will cause corporations who currently hold cash balances to invest in something and help to spur the economy.

ZIRP is actually NIRP, so I agree, that is not shocking. It has already happened, if we look at the effective interest rates in the US and all European countries. The question is what we are more afraid of in the long-term: a Japan-like 20 year of deflation or (hyper)-inflation?
In any case Bitcoin is a good alternative to both.

[jjacob]

Same here. I will not pay a bank to hold my money. I'd rather buy a safecase and store my money inside. To be honest, I will not look into Bitcoin unless I only have a small amount of money. Simply because Bitcoin is unstable.

I am sure negative interest rates won't last for ever.
If the negative interest is lesser than the cost of the safe, people might still prefer the bank. 

[rebuilder]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

i just recently heard about the negative interest rates, i dont understand how they expect people to pay to "invest" their money. why would someone pay to hold their money.

This is a 'nudge' from the central bank to take your money out and invest it in the real economy.
If you don't have the appetite, take it out and stuff it under your pillow.

A nudge to get investors to take riskier bets than they otherwise would.

[Swordsoffreedom]

This is why I got into bitcoin.  Coming to the US soon too.  I'll never pay a bank to hold my money.

Forced inflation sucks especially if your a Japanese vending machine seller, went there and I loved the price and selection of drinks for low cost at  nearly every street corner so this irritates me.
It may work though as it forces banks and investors to invest in a recession when the economy picks up those discounted assets they purchased might see a nice appreciation
http://www.marketwatch.com/story/what-you-need-to-know-about-the-bank-of-japan-and-negative-interest-rates-2016-01-29
http://www.latimes.com/business/la-fi-japan-negative-interest-20160129-htmlstory.html