Now you see why CitiBank is calling for fascism and GE is running away from their Finance Division, if you have a mortgage, the bank ends up paying you:
It is illegal to issue a private currency, and in vendor financing the IRS will impute interest where none is charged (even in deflation?), but it is not illegal to offer vendor financing.
The whole world changed extremely quickly in ways that befuddle the powers that be, but are perfectly clear to anyone who knew business 40 years ago. This is so delightful to see... it is the basis of a renaissance in small business worldwide.
The news is coming in fast and furious as to the changes and implications of credit deflation. Government has no tools to deal with this. It is a free fall event. it is fascinating to figure out the implications, especially when they benefit small business as much as inflation benefitted big business.
Yeeeeehaw! What we have here is a ro-day-oh!
Feel free to forward this by email to three of your friends.
Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers
Subzero rates have put some lenders in an inconceivable position
At least one Spanish bank, Bankinter SA, the country’s seventh-largest lender by market value, has been paying some customers interest on mortgages by deducting that amount from the principal the borrower owes.Understand the banks will still be making money on the spread between what credit costs them and what they remit to you. But just as inflation robs the poor to enrich the few, so deflation robs the few to enrich the poor. Inflation lasted 45 years, deflation will end quick, by outlawing money, or any avenue that benefits the industrious, the poor, etc.
The problem is just one of many challenges caused by interest rates falling below zero, known as a negative interest rate. All over Europe, banks are being compelled to rebuild computer programs, update legal documents and redo spreadsheets to account for negative rates.
It is illegal to issue a private currency, and in vendor financing the IRS will impute interest where none is charged (even in deflation?), but it is not illegal to offer vendor financing.
The whole world changed extremely quickly in ways that befuddle the powers that be, but are perfectly clear to anyone who knew business 40 years ago. This is so delightful to see... it is the basis of a renaissance in small business worldwide.
The news is coming in fast and furious as to the changes and implications of credit deflation. Government has no tools to deal with this. It is a free fall event. it is fascinating to figure out the implications, especially when they benefit small business as much as inflation benefitted big business.
Yeeeeehaw! What we have here is a ro-day-oh!
Feel free to forward this by email to three of your friends.
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