Economist Martin Armstrong warned this week that banks in the US will soon start charging you for deposits.
This comes in the form of negative interest rates. Yesterday, the European Central Bank became the first central bank in history to cut main interest rates to negative. And they will likely pass this cost onto customers in the form of a ‘maintenance fee’.
“In the USA, we are more-likely-than-not going to get the negative rates directly passed to consumers by the banks who will claim it is the Fed who will do so at the requests of the banks. Larry Summers has set the stage. This is just how it works. He flew the balloon to get everyone ready. This is likely to be bullish for the stock market,” writes Armstrong.
“The talk behind the curtain is to impose negative interest rates on the consumer,” he added.
And you thought you were doing the banks a favor by putting your money in their vaults.
No, soon it will be considered that they are providing you a service by holding your money for you so they can make money off your money.
Sound like a good deal?
In the week that the European Central Bank cut its deposit rate for banks from zero to -0.1%, economist Martin Armstrong warns that negative interest rates are coming to the United States, meaning that Americans will be forced to pay just to keep their money in the bank.
In a move described as unprecedented, the ECB became the first central bank in history to cut any main interest rate to negative yesterday, part of a package of measures designed to encourage banks to provide more loans to businesses and households. Many view the policy as a desperate sign of Europe’s faltering economic recovery.
Critics claim that the action will do little to spur growth while threatening to cause inflation and unemployment. While banks in the EU have not indicated whether or not the costs will be passed on to consumers, the New York Times’ Neil Irwin asserts that this is inevitable.
“Banks will most likely pass these negative interest rates on to consumers, or at least try to. They may try to do so not by explicitly charging a negative interest rate, but by paying no interest and charging a fee for account maintenance,” he writes.
What about Americans? Will they also soon be charged by the bank simply for depositing their own money? Yes, according to economist Martin Armstrong.
Armstrong, who is noted for calling the 1987 economic crash to the very day, warns that U.S. banks are preparing a raft of new account fees that will serve as a de facto negative interest rate.
What would they do if no one made deposits?
In the last days, you will neither be able to buy, nor sell except you take the mark of the beast… The day of Christ’s return is getting closer!
SO WHAT YOU ARE SAYING IS THAT THEY ARE GOING TO TRY TO CHARGE US FOR BORROWING OUR MONEY? GOOD LUCK I WILL CLOSE MY ACCOUNTS QUICKER THAN $#%&!@*!
Secondly, banks already make money off your money, thats why you get interest! They take your money that they are holding and invest it. That’s how banking works…. Total c**p!!!
Does anyone remember the Great Economy we had with Bush. G. W. had seven years of good Economy while Obama has yet to have ONE. How is that for Hope and Change?
What country ever existed a century and a half without a rebellion? And what country can preserve it’s liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is it’s natural manure. – Thomas Jefferson
Charging for deposits? Are they nuts? Soon everyone will be required to have direct deposit and they use deposited funds to make money! If they don’t know how to run the business they should return all funds to account holders and close the doors. Ever noticed that bank owners/managers make a great salary? Cut their salaries!
Thats the truth. Mr. Michael Donofrio, I read the bible forwards, backwards, and that’s the message I keep getting from our Lord and Savior, Amen, brother!
EVERYONE GET YOUR MONEY OUT OF THESE BANKS AND GET TO A CREDIT UNION!!! FAST!
congress, is smiling to our face and stabbing us in the back