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.
That’s why you use local banks and credit unions so they won’t charge it’s called voting with your service people it’s what I do and
sounds like people charghing U2 COUNT YOUR CHANGE..
HEHE….BYE BYE BANK.
Fascism!! It’s you’re $$$$, not theirs. EVIL& GREEDY PIGS. Take ur $ out of the gov’t owned piggy bank.-NOW!!!
How about central control of bank.Maybe we can try no money at market,just digital number in economica bank
A lot of banks already charge maintenance fees and have been for over 20 years. They just waiver them if you use direct deposit or keep a certain amount of balance.
How stupid, that is the purpose of banks, every day the bull c**p flies, very disturbing. stop the non-sense, stop trying to find ways to steal from us.
then i think the whole world should go back to pay packs its was so much better and the money goes straight into your pocket not the bloody Gov
Comes more in the form of Greed is more like it! Fed pushes this c**p in order to force people into Plastics and Online C**p as they can then have their noses up everyones azz!
Stop depositing money and put them out of business
They do this because we let them
They need our money to stay in business
Stop giving them your money