$1.46 Trillion in circulation, but commercial banks have $11 trillion total deposits?

originally posted by: SouthernForkway26
Bitcoin is backed by the blockchain. Huge multi-million dollar mining computers with a few years of running the algorithm has value. Not even gold can match the security the blockchain gives Bitcoin.

It's not the block chain that inherently gives value, it's the cost of the electricity to run it.

Eventually the economy is collapsing from Aaron's interest on his loans sucking the IOUmoney out. The friends say we need more money to grease the wheels so Aaron obliges, loans them all $15 dollars with the agreement to repay $1 for 20 days, temporarily injecting much needed IOUs but ultimately it sucks out another $5 apiece.

Interest is only paid one time, but the value of the IOU to the economy is equal to the number of times it changes hands.

Hey y'all first post so go easy.

Your example works out Azadan, including the velocity of money bit, until we factor in the fact that Aaron has an order of magnitude worth of liquidity looming over the economy. Looking at the current trend in rates of interest, once we get below zero Aaron has no reason to hold all his liquidity. In fact, it will be advantageous for him to release it. Fast as he can lol.

The velocity of money will then go full scale weimar.

originally posted by: Drunkenparrot
I think you would have a more coherent point if there were 11 trillion in circulation backed by 1.46 trillion in withholdings but hey, economics was never my strongest subject either...

millionaires and billionaires don't horde cash, they can't make money off of it. you don't walk around with your life savings in your pocket, or under the mattress.

originally posted by: Lithicalus
Hey y'all first post so go easy.

Your example works out Azadan, including the velocity of money bit, until we factor in the fact that Aaron has an order of magnitude worth of liquidity looming over the economy. Looking at the current trend in rates of interest, once we get below zero Aaron has no reason to hold all his liquidity. In fact, it will be advantageous for him to release it. Fast as he can lol.

The velocity of money will then go full scale weimar.

The velocity of money is only in factor in inflation. Inflation goes up when there is little demand for money, and little money moving through the economy. It causes it to accumulate. As long as there is a desire for money, the velocity increasing cannot inflate things. Negative interest rates, as bad as they are, would not create hyperinflation.

Negative rates are basically a last ditch effort though. Once a bank does them, unless they're offering the least bad rate around, no one is going to keep their money in them. They'll keep their money in property and foreign currency. The bank that pulls the negative interest rate trick will be out of business within a week.

a reply to: ScepticScot

What do you think happens to the interest when it is paid? The money dosent vanish it is redistributed

The interest is paid one way or another ultimately to the Rothschilds, they control the Worlds Banks


realitieswatch.com...

The Rothschild-Owned Central Banks of the World
Afghanistan: Bank of Afghanistan Albania: Bank of Albania Algeria: Bank of Algeria Argentina: Central Bank of Argentina Armenia: Central Bank of Armenia Aruba: Central Bank of Aruba Australia: Reserve Bank of Australia Austria: Austrian National Bank Azerbaijan: Central Bank of Azerbaijan Republic Bahamas: Central Bank of The Bahamas Bahrain: Central Bank of Bahrain Bangladesh: Bangladesh Bank Barbados: Central Bank of Barbados Belarus: National Bank of the Republic of Belarus Belgium: National Bank of Belgium Belize: Central Bank of Belize Benin: Central Bank of West African States (BCEAO) Bermuda: Bermuda Monetary Authority Bhutan: Royal Monetary Authority of Bhutan Bolivia: Central Bank of Bolivia Bosnia: Central Bank of Bosnia and Herzegovina Botswana: Bank of Botswana Brazil: Central Bank of Brazil Bulgaria: Bulgarian National Bank Burkina Faso: Central Bank of West African States (BCEAO) Burundi: Bank of the Republic of Burundi Cambodia: National Bank of Cambodia Cameroon: Bank of Central African States Canada: Bank of Canada – Banque du Canada Cayman Islands: Cayman Islands Monetary Authority Central African Republic: Bank of Central African States Chad: Bank of Central African States Chile: Central Bank of Chile China: The People’s Bank of China Colombia: Bank of the Republic Comoros: Central Bank of Comoros Congo: Bank of Central African States Costa Rica: Central Bank of Costa Rica Côte d’Ivoire: Central Bank of West African States (BCEAO) Croatia: Croatian National Bank Cuba: Central Bank of Cuba Cyprus: Central Bank of Cyprus Czech Republic: Czech National Bank Denmark: National Bank of Denmark Dominican Republic: Central Bank of the Dominican Republic East Caribbean area: Eastern Caribbean Central Bank Ecuador: Central Bank of Ecuador Egypt: Central Bank of Egypt El Salvador: Central Reserve Bank of El Salvador Equatorial Guinea: Bank of Central African States Estonia: Bank of Estonia Ethiopia: National Bank of Ethiopia European Union: European Central Bank Fiji: Reserve Bank of Fiji Finland: Bank of Finland France: Bank of France Gabon: Bank of Central African States The Gambia: Central Bank of The Gambia Georgia: National Bank of Georgia Germany: Deutsche Bundesbank Ghana: Bank of Ghana Greece: Bank of Greece Guatemala: Bank of Guatemala Guinea Bissau: Central Bank of West African States (BCEAO) Guyana: Bank of Guyana Haiti: Central Bank of Haiti Honduras: Central Bank of Honduras Hong Kong: Hong Kong Monetary Authority Hungary: Magyar Nemzeti Bank Iceland: Central Bank of Iceland India: Reserve Bank of India Indonesia: Bank Indonesia Iran: The Central Bank of the Islamic Republic of Iran Iraq: Central Bank of Iraq Ireland: Central Bank and Financial Services Authority of Ireland Israel: Bank of Israel Italy: Bank of Italy Jamaica: Bank of Jamaica Japan: Bank of Japan Jordan: Central Bank of Jordan Kazakhstan: National Bank of Kazakhstan Kenya: Central Bank of Kenya Korea: Bank of Korea Kuwait: Central Bank of Kuwait Kyrgyzstan: National Bank of the Kyrgyz Republic Latvia: Bank of Latvia Lebanon: Central Bank of Lebanon Lesotho: Central Bank of Lesotho Libya: Central Bank of Libya Lithuania: Bank of Lithuania Luxembourg: Central Bank of Luxembourg Macao: Monetary Authority of Macao Macedonia: National Bank of the Republic of Macedonia Madagascar: Central Bank of Madagascar Malawi: Reserve Bank of Malawi Malaysia: Central Bank of Malaysia Mali: Central Bank of West African States (BCEAO) Malta: Central Bank of Malta Mauritius: Bank of Mauritius Mexico: Bank of Mexico Moldova: National Bank of Moldova Mongolia: Bank of Mongolia Montenegro: Central Bank of Montenegro Morocco: Bank of Morocco Mozambique: Bank of Mozambique Namibia: Bank of Namibia Nepal: Central Bank of Nepal Netherlands: Netherlands Bank Netherlands Antilles: Bank of the Netherlands Antilles New Zealand: Reserve Bank of New Zealand Nicaragua: Central Bank of Nicaragua Niger: Central Bank of West African States (BCEAO) Nigeria: Central Bank of Nigeria Norway: Central Bank of Norway Oman: Central Bank of Oman Pakistan: State Bank of Pakistan Papua New Guinea: Bank of Papua New Guinea Paraguay: Central Bank of Paraguay Peru: Central Reserve Bank of Peru Philippines: Bangko Sentral ng Pilipinas Poland: National Bank of Poland Portugal: Bank of Portugal Qatar: Qatar Central Bank Romania: National Bank of Romania Russia: Central Bank of Russia Rwanda: National Bank of Rwanda San Marino: Central Bank of the Republic of San Marino Samoa: Central Bank of Samoa Saudi Arabia: Saudi Arabian Monetary Agency Senegal: Central Bank of West African States (BCEAO) Serbia: National Bank of Serbia Seychelles: Central Bank of Seychelles Sierra Leone: Bank of Sierra Leone Singapore: Monetary Authority of Singapore Slovakia: National Bank of Slovakia Slovenia: Bank of Slovenia Solomon Islands: Central Bank of Solomon Islands South Africa: South African Reserve Bank Spain: Bank of Spain Sri Lanka: Central Bank of Sri Lanka Sudan: Bank of Sudan Surinam: Central Bank of Suriname Swaziland: The Central Bank of Swaziland Sweden: Sveriges Riksbank Switzerland: Swiss National Bank Tajikistan: National Bank of Tajikistan Tanzania: Bank of Tanzania Thailand: Bank of Thailand Togo: Central Bank of West African States (BCEAO) Tonga: National Reserve Bank of Tonga Trinidad and Tobago: Central Bank of Trinidad and Tobago Tunisia: Central Bank of Tunisia Turkey: Central Bank of the Republic of Turkey Uganda: Bank of Uganda Ukraine: National Bank of Ukraine United Arab Emirates: Central Bank of United Arab Emirates United Kingdom: Bank of England United States: The Dirty Nasty Stinky Fed, Federal Reserve Bank of New York Uruguay: Central Bank of Uruguay Vanuatu: Reserve Bank of Vanuatu Venezuela: Central Bank of Venezuela Vietnam: The State Bank of Vietnam Yemen: Central Bank of Yemen Zambia: Bank of Zambia Zimbabwe: Reserve Bank of Zimbabwe

originally posted by: Aazadan

originally posted by: Lithicalus
Hey y'all first post so go easy.

Your example works out Azadan, including the velocity of money bit, until we factor in the fact that Aaron has an order of magnitude worth of liquidity looming over the economy. Looking at the current trend in rates of interest, once we get below zero Aaron has no reason to hold all his liquidity. In fact, it will be advantageous for him to release it. Fast as he can lol.

The velocity of money will then go full scale weimar.

The velocity of money is only in factor in inflation. Inflation goes up when there is little demand for money, and little money moving through the economy. It causes it to accumulate. As long as there is a desire for money, the velocity increasing cannot inflate things. Negative interest rates, as bad as they are, would not create hyperinflation.

Negative rates are basically a last ditch effort though. Once a bank does them, unless they're offering the least bad rate around, no one is going to keep their money in them. They'll keep their money in property and foreign currency. The bank that pulls the negative interest rate trick will be out of business within a week.

Howdy Mr. Azadan!

I friggin love economic discussions. Wouldn't there be a marked increase in the velocity of money in a hyperinflationary scenario? It wouldn't be a cause so much as a symptom.

Now, let's talk about these below zero rates.... . I think you have t factor in general market direction here. Banks with large amounts of capital will, I think, tend to hold their money in case the rates start trending back towards the positive. Holding it would make sense in the short term. But if the banks see a long term trend towards the negative ( which would theoretically blast their capital) I think they will get into the asset business. Mind you, they wouldn't be pouring money into consumer goods, probably stocks, or they will pour into government bonds with a less negative rate - which is just a bizarre thing to say. This will cause localized inflation in some parts of the economy but I think you are right about it not causing hyperinflation. What it WILL serve to inflate will be the wallets of those selling the non monetary assets to the banks (or investors) looking for some kind of yield.

The rich get richer, the poor get poorer, and we lose a little more of our moral fabric. This is going to wreak havoc on the saver and force more people into an already dangerously inflated stock market.

originally posted by: Kuroodo
So, I was doing some research. Hopefully I'm not wrong or confused here. Someone correct me if I am wrong!

1 trillion is 1000 billions.
Here in this website, you can see a chart that shows how much total money is deposited onto commercial banks, in billions.
fred.stlouisfed.org...

The total is basically 11,000 billions (11 trillion).
That's $11 trillion!

BUT, if you look at the federal reserve website and look at how much money/USD is in circulation as of June 1 2016, it's $1.46 trillion. www.federalreserve.gov...

How can commercial banks have $11 trillion in total, if there's only $1.46 trillion USD in circulation?

If this isn't solid evidence of the USD being made out of thin air, then idk what else is!

Banks can only cheat this much when there is one currency. Once you give Aaron the IOU guy government protection to issue money as the only issuer than this kind of stuff happens. You don't need a 100 percent reserve for a banking system to work, at least in my opinion. What you do need is free market banking and several issuers of currency to keep people honest. This sort of market would keep the reserve:loan out ratio a little healthier.

I think

originally posted by: TheConstruKctionofLight
a reply to: ScepticScot

What do you think happens to the interest when it is paid? The money dosent vanish it is redistributed

The interest is paid one way or another ultimately to the Rothschilds, they control the Worlds Banks


realitieswatch.com...

The Rothschild-Owned Central Banks of the World
Afghanistan: Bank of Afghanistan Albania: Bank of Albania Algeria: Bank of Algeria Argentina: Central Bank of Argentina Armenia: Central Bank of Armenia Aruba: Central Bank of Aruba Australia: Reserve Bank of Australia Austria: Austrian National Bank Azerbaijan: Central Bank of Azerbaijan Republic Bahamas: Central Bank of The Bahamas Bahrain: Central Bank of Bahrain Bangladesh: Bangladesh Bank Barbados: Central Bank of Barbados Belarus: National Bank of the Republic of Belarus Belgium: National Bank of Belgium Belize: Central Bank of Belize Benin: Central Bank of West African States (BCEAO) Bermuda: Bermuda Monetary Authority Bhutan: Royal Monetary Authority of Bhutan Bolivia: Central Bank of Bolivia Bosnia: Central Bank of Bosnia and Herzegovina Botswana: Bank of Botswana Brazil: Central Bank of Brazil Bulgaria: Bulgarian National Bank Burkina Faso: Central Bank of West African States (BCEAO) Burundi: Bank of the Republic of Burundi Cambodia: National Bank of Cambodia Cameroon: Bank of Central African States Canada: Bank of Canada – Banque du Canada Cayman Islands: Cayman Islands Monetary Authority Central African Republic: Bank of Central African States Chad: Bank of Central African States Chile: Central Bank of Chile China: The People’s Bank of China Colombia: Bank of the Republic Comoros: Central Bank of Comoros Congo: Bank of Central African States Costa Rica: Central Bank of Costa Rica Côte d’Ivoire: Central Bank of West African States (BCEAO) Croatia: Croatian National Bank Cuba: Central Bank of Cuba Cyprus: Central Bank of Cyprus Czech Republic: Czech National Bank Denmark: National Bank of Denmark Dominican Republic: Central Bank of the Dominican Republic East Caribbean area: Eastern Caribbean Central Bank Ecuador: Central Bank of Ecuador Egypt: Central Bank of Egypt El Salvador: Central Reserve Bank of El Salvador Equatorial Guinea: Bank of Central African States Estonia: Bank of Estonia Ethiopia: National Bank of Ethiopia European Union: European Central Bank Fiji: Reserve Bank of Fiji Finland: Bank of Finland France: Bank of France Gabon: Bank of Central African States The Gambia: Central Bank of The Gambia Georgia: National Bank of Georgia Germany: Deutsche Bundesbank Ghana: Bank of Ghana Greece: Bank of Greece Guatemala: Bank of Guatemala Guinea Bissau: Central Bank of West African States (BCEAO) Guyana: Bank of Guyana Haiti: Central Bank of Haiti Honduras: Central Bank of Honduras Hong Kong: Hong Kong Monetary Authority Hungary: Magyar Nemzeti Bank Iceland: Central Bank of Iceland India: Reserve Bank of India Indonesia: Bank Indonesia Iran: The Central Bank of the Islamic Republic of Iran Iraq: Central Bank of Iraq Ireland: Central Bank and Financial Services Authority of Ireland Israel: Bank of Israel Italy: Bank of Italy Jamaica: Bank of Jamaica Japan: Bank of Japan Jordan: Central Bank of Jordan Kazakhstan: National Bank of Kazakhstan Kenya: Central Bank of Kenya Korea: Bank of Korea Kuwait: Central Bank of Kuwait Kyrgyzstan: National Bank of the Kyrgyz Republic Latvia: Bank of Latvia Lebanon: Central Bank of Lebanon Lesotho: Central Bank of Lesotho Libya: Central Bank of Libya Lithuania: Bank of Lithuania Luxembourg: Central Bank of Luxembourg Macao: Monetary Authority of Macao Macedonia: National Bank of the Republic of Macedonia Madagascar: Central Bank of Madagascar Malawi: Reserve Bank of Malawi Malaysia: Central Bank of Malaysia Mali: Central Bank of West African States (BCEAO) Malta: Central Bank of Malta Mauritius: Bank of Mauritius Mexico: Bank of Mexico Moldova: National Bank of Moldova Mongolia: Bank of Mongolia Montenegro: Central Bank of Montenegro Morocco: Bank of Morocco Mozambique: Bank of Mozambique Namibia: Bank of Namibia Nepal: Central Bank of Nepal Netherlands: Netherlands Bank Netherlands Antilles: Bank of the Netherlands Antilles New Zealand: Reserve Bank of New Zealand Nicaragua: Central Bank of Nicaragua Niger: Central Bank of West African States (BCEAO) Nigeria: Central Bank of Nigeria Norway: Central Bank of Norway Oman: Central Bank of Oman Pakistan: State Bank of Pakistan Papua New Guinea: Bank of Papua New Guinea Paraguay: Central Bank of Paraguay Peru: Central Reserve Bank of Peru Philippines: Bangko Sentral ng Pilipinas Poland: National Bank of Poland Portugal: Bank of Portugal Qatar: Qatar Central Bank Romania: National Bank of Romania Russia: Central Bank of Russia Rwanda: National Bank of Rwanda San Marino: Central Bank of the Republic of San Marino Samoa: Central Bank of Samoa Saudi Arabia: Saudi Arabian Monetary Agency Senegal: Central Bank of West African States (BCEAO) Serbia: National Bank of Serbia Seychelles: Central Bank of Seychelles Sierra Leone: Bank of Sierra Leone Singapore: Monetary Authority of Singapore Slovakia: National Bank of Slovakia Slovenia: Bank of Slovenia Solomon Islands: Central Bank of Solomon Islands South Africa: South African Reserve Bank Spain: Bank of Spain Sri Lanka: Central Bank of Sri Lanka Sudan: Bank of Sudan Surinam: Central Bank of Suriname Swaziland: The Central Bank of Swaziland Sweden: Sveriges Riksbank Switzerland: Swiss National Bank Tajikistan: National Bank of Tajikistan Tanzania: Bank of Tanzania Thailand: Bank of Thailand Togo: Central Bank of West African States (BCEAO) Tonga: National Reserve Bank of Tonga Trinidad and Tobago: Central Bank of Trinidad and Tobago Tunisia: Central Bank of Tunisia Turkey: Central Bank of the Republic of Turkey Uganda: Bank of Uganda Ukraine: National Bank of Ukraine United Arab Emirates: Central Bank of United Arab Emirates United Kingdom: Bank of England United States: The Dirty Nasty Stinky Fed, Federal Reserve Bank of New York Uruguay: Central Bank of Uruguay Vanuatu: Reserve Bank of Vanuatu Venezuela: Central Bank of Venezuela Vietnam: The State Bank of Vietnam Yemen: Central Bank of Yemen Zambia: Bank of Zambia Zimbabwe: Reserve Bank of Zimbabwe

These folks are scary.

a reply to: Lithicalus

Negative interest rates encourages more lending for businesses, because cash loses value if you hang onto it. Instead you rely on the business returns to generate revenue.

a reply to: Aazadan

Yessir.

originally posted by: TheConstruKctionofLight
a reply to: ScepticScot

What do you think happens to the interest when it is paid? The money dosent vanish it is redistributed

The interest is paid one way or another ultimately to the Rothschilds, they control the Worlds Banks


realitieswatch.com...

The Rothschild-Owned Central Banks of the World
Afghanistan: Bank of Afghanistan Albania: Bank of Albania Algeria: Bank of Algeria Argentina: Central Bank of Argentina Armenia: Central Bank of Armenia Aruba: Central Bank of Aruba Australia: Reserve Bank of Australia Austria: Austrian National Bank Azerbaijan: Central Bank of Azerbaijan Republic Bahamas: Central Bank of The Bahamas Bahrain: Central Bank of Bahrain Bangladesh: Bangladesh Bank Barbados: Central Bank of Barbados Belarus: National Bank of the Republic of Belarus Belgium: National Bank of Belgium Belize: Central Bank of Belize Benin: Central Bank of West African States (BCEAO) Bermuda: Bermuda Monetary Authority Bhutan: Royal Monetary Authority of Bhutan Bolivia: Central Bank of Bolivia Bosnia: Central Bank of Bosnia and Herzegovina Botswana: Bank of Botswana Brazil: Central Bank of Brazil Bulgaria: Bulgarian National Bank Burkina Faso: Central Bank of West African States (BCEAO) Burundi: Bank of the Republic of Burundi Cambodia: National Bank of Cambodia Cameroon: Bank of Central African States Canada: Bank of Canada – Banque du Canada Cayman Islands: Cayman Islands Monetary Authority Central African Republic: Bank of Central African States Chad: Bank of Central African States Chile: Central Bank of Chile China: The People’s Bank of China Colombia: Bank of the Republic Comoros: Central Bank of Comoros Congo: Bank of Central African States Costa Rica: Central Bank of Costa Rica Côte d’Ivoire: Central Bank of West African States (BCEAO) Croatia: Croatian National Bank Cuba: Central Bank of Cuba Cyprus: Central Bank of Cyprus Czech Republic: Czech National Bank Denmark: National Bank of Denmark Dominican Republic: Central Bank of the Dominican Republic East Caribbean area: Eastern Caribbean Central Bank Ecuador: Central Bank of Ecuador Egypt: Central Bank of Egypt El Salvador: Central Reserve Bank of El Salvador Equatorial Guinea: Bank of Central African States Estonia: Bank of Estonia Ethiopia: National Bank of Ethiopia European Union: European Central Bank Fiji: Reserve Bank of Fiji Finland: Bank of Finland France: Bank of France Gabon: Bank of Central African States The Gambia: Central Bank of The Gambia Georgia: National Bank of Georgia Germany: Deutsche Bundesbank Ghana: Bank of Ghana Greece: Bank of Greece Guatemala: Bank of Guatemala Guinea Bissau: Central Bank of West African States (BCEAO) Guyana: Bank of Guyana Haiti: Central Bank of Haiti Honduras: Central Bank of Honduras Hong Kong: Hong Kong Monetary Authority Hungary: Magyar Nemzeti Bank Iceland: Central Bank of Iceland India: Reserve Bank of India Indonesia: Bank Indonesia Iran: The Central Bank of the Islamic Republic of Iran Iraq: Central Bank of Iraq Ireland: Central Bank and Financial Services Authority of Ireland Israel: Bank of Israel Italy: Bank of Italy Jamaica: Bank of Jamaica Japan: Bank of Japan Jordan: Central Bank of Jordan Kazakhstan: National Bank of Kazakhstan Kenya: Central Bank of Kenya Korea: Bank of Korea Kuwait: Central Bank of Kuwait Kyrgyzstan: National Bank of the Kyrgyz Republic Latvia: Bank of Latvia Lebanon: Central Bank of Lebanon Lesotho: Central Bank of Lesotho Libya: Central Bank of Libya Lithuania: Bank of Lithuania Luxembourg: Central Bank of Luxembourg Macao: Monetary Authority of Macao Macedonia: National Bank of the Republic of Macedonia Madagascar: Central Bank of Madagascar Malawi: Reserve Bank of Malawi Malaysia: Central Bank of Malaysia Mali: Central Bank of West African States (BCEAO) Malta: Central Bank of Malta Mauritius: Bank of Mauritius Mexico: Bank of Mexico Moldova: National Bank of Moldova Mongolia: Bank of Mongolia Montenegro: Central Bank of Montenegro Morocco: Bank of Morocco Mozambique: Bank of Mozambique Namibia: Bank of Namibia Nepal: Central Bank of Nepal Netherlands: Netherlands Bank Netherlands Antilles: Bank of the Netherlands Antilles New Zealand: Reserve Bank of New Zealand Nicaragua: Central Bank of Nicaragua Niger: Central Bank of West African States (BCEAO) Nigeria: Central Bank of Nigeria Norway: Central Bank of Norway Oman: Central Bank of Oman Pakistan: State Bank of Pakistan Papua New Guinea: Bank of Papua New Guinea Paraguay: Central Bank of Paraguay Peru: Central Reserve Bank of Peru Philippines: Bangko Sentral ng Pilipinas Poland: National Bank of Poland Portugal: Bank of Portugal Qatar: Qatar Central Bank Romania: National Bank of Romania Russia: Central Bank of Russia Rwanda: National Bank of Rwanda San Marino: Central Bank of the Republic of San Marino Samoa: Central Bank of Samoa Saudi Arabia: Saudi Arabian Monetary Agency Senegal: Central Bank of West African States (BCEAO) Serbia: National Bank of Serbia Seychelles: Central Bank of Seychelles Sierra Leone: Bank of Sierra Leone Singapore: Monetary Authority of Singapore Slovakia: National Bank of Slovakia Slovenia: Bank of Slovenia Solomon Islands: Central Bank of Solomon Islands South Africa: South African Reserve Bank Spain: Bank of Spain Sri Lanka: Central Bank of Sri Lanka Sudan: Bank of Sudan Surinam: Central Bank of Suriname Swaziland: The Central Bank of Swaziland Sweden: Sveriges Riksbank Switzerland: Swiss National Bank Tajikistan: National Bank of Tajikistan Tanzania: Bank of Tanzania Thailand: Bank of Thailand Togo: Central Bank of West African States (BCEAO) Tonga: National Reserve Bank of Tonga Trinidad and Tobago: Central Bank of Trinidad and Tobago Tunisia: Central Bank of Tunisia Turkey: Central Bank of the Republic of Turkey Uganda: Bank of Uganda Ukraine: National Bank of Ukraine United Arab Emirates: Central Bank of United Arab Emirates United Kingdom: Bank of England United States: The Dirty Nasty Stinky Fed, Federal Reserve Bank of New York Uruguay: Central Bank of Uruguay Vanuatu: Reserve Bank of Vanuatu Venezuela: Central Bank of Venezuela Vietnam: The State Bank of Vietnam Yemen: Central Bank of Yemen Zambia: Bank of Zambia Zimbabwe: Reserve Bank of Zimbabwe

No it isn't and no they don't.

originally posted by: Aazadan
a reply to: Lithicalus

Negative interest rates encourages more lending for businesses, because cash loses value if you hang onto it. Instead you rely on the business returns to generate revenue.

That's the theory but the evidence it works seems rather sketchy. The actual amount of lending has very very little to do with actual bank reserves.

If there is neither the demand for loans, nor the confidence from the bank that making loans is a good risk, then no measure to affect banks reserves is going to increase lending.

In fact we could see the opposite due to loss of confidence in the banks and banking system.

Correct me if I am wrong, but has there ever been an instance of negative interest rates in a world reserve currency country?

originally posted by: Lithicalus
Correct me if I am wrong, but has there ever been an instance of negative interest rates in a world reserve currency country?

Japan has used negative interest rates.

a reply to: ScepticScot

Yes they have but I don't think they have reserve currency status. I think we are quickly approaching completely unknown economic territory that can only be speculated on theoretically.

a reply to: Lithicalus

The Japanese yen is one of the 5 official reserve currencies (all be it the Yen and Sterling lag a long way behind the Dollar and the Euro).

The biggest thing of note so far about negative interest rates is how little it seems to do.

That said Japan has a current account surplus, could be completely different for a country like the US that relies on demand for financial instruments.

a reply to: ScepticScot

No it isn't and no they don't.

If you say so