ALL RIGHT, AS I SAID A LONG TIME AGO ON ITALIAN (FUCKING) TV…
Many months ago I appeared on Italian (fucking shit) Tv and I warned folks about the fact that Eurozone-induced deflation was devouring Europe. I said that Mario Draghi has the EU out of control, deflation is eating us alive out there if you apply Merkel’s Austerities of course. Also I wrote years ago that Austerities would fuck the whole economic system and the only result would be that people (including the stupid Germans) will stop spending or will postpone spending, precipitating the whole fucking place into even more deflation.
I also said on (Italian fucking crap Tv) that Draghi’s strategy to now charge negative rates on banks’ reserves at the ECB would have grave repercussions for ordinary people. Didn’t I?
Well, of course I was right. Data from Bloomberg and the New York Times are now confirming that negatives rates are spreading from the ECB to your main street bank, Mr Bianchi! It’s happening in Switzerland, in Denmark, and in some selected places in Germany. What does that mean? Well fairly simple:
Negative rates mean that people who SAVE money in banks will receive interest rates of…. MINUS (-) 0,5%, that is, they will PAY THE BANK TO HOLD THEIR OWN SAVINGS (negative rates). And on the contrary, people who have DEBTS with the banks, like loans or mortgages, will… NOT PAY ANY INTEREST, ACTUALLY THEY WILL BE PAID BY THE BANK to be in debt with the bank….!!!!! (negative rates)
Yahoooooooo! The EU banking world is going nuts, it’s a flippin’ fruitcake pile of insane shit, Mr Draghi you genius, and this will come to Italy as well. But look, if I have to be honest, if this comes to Italy… who gives a damn. Are the Italians thinking beings? No, so…