The Fed's Stunning Primer For Life In A Negative Interest Rate World
Submitted by Tyler Durden on 02/05/2015 - 20:45
if rates go negative, the U.S. Treasury Department’s Bureau of Engraving and Printing will likely be called upon to print a lot more currency as individuals and small businesses substitute cash for at least some of their bank balances.
As interest rates go more negative, market participants will have increasing incentives to make payments quickly and to receive payments in forms that can be collected slowly
if interest rates go negative, the incentives reverse: people receiving payments will prefer checks (which can be held back from collection) to electronic transfers
we may see an epochal outburst of socially unproductive—even if individually beneficial—financial innovation
http://www.zerohedge.com/news/2015-02-05/who-said-it-if-rates-go-negative-treasury-will-likely-print-lot-more-currency
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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