Why do the governments of the world want to punish saver soo bad?

[Kasz216]

SamuelRSmith said:

Soleron said:
The governments don't want to admit they have no control over the economy; they are pulling hard on the only lever they have but it's up against the endstop.

...that said negative interest rates aren't impossible to implement.

I hear that thrown around a lot, but what does that even mean? I mean, zero percent interest rates indicate to the market that we've eliminated scarcity (as the markets would be investing/consuming as if there are unlimited resources available)... ahat does a negative interest rate even mean?

This is my problem with politicians/economists/media outlets who talk about zero, or near-zero interest rates (or anybody who believes that the interest rates can be effectively centrally planned), is that they are proving that they don't even know what an interest rate indicates. It scares me that we have people trying to control something of which they don't even understand the basic principle of.

A Negative interest rate means HEAVY risk and calamity.  Or at least, perceived risk and calamity.

Imagine for example, Angola.  It's the most expensive city in the world to live.  Largely because of it's lack of saftey.  You essentially need to hire people to protect your shit.

In such an enviroment, an Angolian bank probably doesn't have to offer an interest rate, and can even mean they could charge you.

 

You might be able to get a negative interest loan in a case where it's expected there to be a massive deflation and then later, revaluation.  Say for example.  The Europeon union breaks up. 

A nation that has a weaker currency value, but a stronger baseline economy might end up getting a huge loan with a negative interest rate, because they know that when they're paid back... they will actually make more money then if they activly let there capital rate depriciate in value.

Or this can be done as per government policy just to force peoples hands into spending. 

Think of it like a wealth tax spend it now or lose it anyway!