Coronavirus

The affects of a covid economy, so what's the chances of negative interest rates in the future?

Some businesses already speaking out, to quote one person today 'let them try it.'

It also mirrors my concerns about moving into a cashless society, because once we have gone this route, it will give the banks a free rein to do what they want.

But more the layman side of things, an article from 2016...

https://www.moneyexpert.com/news/natwest-considers-negative-interest-business-customers/

"Negative rates would be very dangerous, especially for ordinary savers – the danger is many people will just think, I’m going to put the money under the mattress. That could have security risks, especially for older people.

"You don’t want your life savings out of the bank, you want them somewhere safe – but if the bank is going to charge you for keeping your money and every day you have it there it is worth less and less, you can see why people would say, I’m not going to do that."

As Moneysavingexpert’s Martin Lewis said: “The psychological impact of the actual money shrinking the cash terms would be huge and you would see a swathe of customers, at a level we’ve never seen before, ditching any bank that imposed negative rates. The first one to break that taboo for customers is going to face an enormous uproar.”

 

That would be really extreme. I don’t think it’s ever gone well anywhere and probably creates more problems than it solves.

I know the interest rate is set independently of government but it’d surely be unpalatable for people with serious savings who tend to be old and vote Tory.

 

Offshore bank accounts the way to go

 

Negative interest rates would cripple the liquidity of banks and building societies and bring them to their knees, and be completely counter productive, as people scrambled to put their cash into appreciating assets like property, which would help drive inflation.

 

If @luvgonzo dinner dishes are anything to go by, this would be his stash...

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Mines in the loft

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,with the guns and drugs.

 

Surely the idea would be for the gun NOT to be with the cash and drugs

 

Bury it in the garden

 

Expensive compost that mate. I wonder how many criminals have buried stash, only for it to be out of circulation by the time they are released.

 

I should have made a money thread!

 

I’ve still got a load of white fivers, and green pound notes, under the shed. Not worth disturbing the snails for now.

In the US, banknotes used to stay in circulation almost forever, so every crook (no shortage of crooks in the US of A) had a stash buried somewhere. I think the Fed finally cottoned on, but only recently.

 

Good point about US notes. I know over the years I went out there, they had never changed, when I had money left over from a previous trips. Although there was some changes in more recent years, as you say the Feds must have cottoned on.

I use to love the old green pound notes, not the same with a coin, whoever thought, that the greenback most suitable use would end up as a coin for a supermarket trolley.

 

no its called sharing out the work load at home between each other.....think they call it a partnership, myself i call it respect and friendship

but as per you make up whatever nonsense you want 2 fit into your world of delusion.

 

thank fk you didnt

 

She makes you take a strap-on, doesn’t she.

 

ffs, think you need 2 drink some funny before trying it sober

 

I feel like someone not made to take a strap-on would have taken that with more levity.

 

She told you to write that, didn’t she.

 

....does she leave you a list of jobs to do.