A Big Bank is charging negative interest rates: What it means for you

The Dutch bank ABN Amro has warned its business clients that negative interest rates are coming. This means businesses will be paying ABN Amro to hold their money for them.

If you think this sounds like the opposite of how it’s supposed to be, you’re right. Negative interest rates are a sign of a serious problem with the core of the economy. Negative rates are a desperate attempt to get people to spend money. After all, if you’re losing money by keeping it in the bank, why not spend it instead right?

Negative interest rates are a form of social engineering. They are also an example of corporatism getting out of control. Consider this report from Zero Hedge about ABN Amro:

“ABN AMRO still is a government-owned and government-run bank. The bank’s CEO , Gerrit Zalm, wasn’t someone from the financial sector, but used to be the Netherlands longest-serving Minister of Finance being in office for no less than 12 years (or three complete terms).”

“Not only is it intriguing to see the bank that is being led by a bureaucrat rather than a banker being the first one to formally start talking about charging customers to park their money at the bank, it’s also very interesting to see it’s a government-owned bank taking the first step.”

What does this mean for you?

It means governments and banks are getting ever more desperate. Income inequality is reducing demand and slowing down economies. At the same time, rising personal and government debts leave people and states with less money to spend. The corporatists who control most governments don’t want to address the underlying causes, since they have grown rich and powerful in the current system. Instead they look for gimmicks to trick people into buying more stuff.

Negative interest rates around the world:

Negative Interest Rates, Corporatism, Bankers
Photo credit: Thomson Reuters, U.S. Global Investors

Negative interest rates are a sign that bankers, politicians, and big corporations are running out of ideas. Top-down economics have failed, but corporatist thinkers can’t see outside the box they’ve created. The real solution is to empower people from the bottom-up, giving everyone income security and debt-free access to education.

But that’s not what the corporatists want. They want control. They don’t want you empowered. They want to keep you and everyone else afraid, on the edge of falling into poverty, making just enough money to pay the bills, pay debt interest, consume, and never get further ahead.

Negative rates address a symptom of a broken economy, not the cause. That’s why they will fail and only make things worse.



Fighting Corporatism

Our world seems to be spinning out of control. Income inequality continues to reach obscene levels, violence and instability are rising. The underlying cause of these problems is corporatism – a system that takes money and power away from individuals and communities and concentrates it in the hands of politicians, big corporations, and the banks. To stop our world from descending even further, we must end the top-down system of corporatism and replace it with a bottom-up system that provides every individual and local community with income security and empowerment. Read more here.