Negative interest rates

Dear Beate Meinl-Reisinger!

I am very impressed of the NEOS policy under your chair. Precisely because I strongly agree with your political approaches, I would like to contradict you on one crucial point: in your economic policy.

(Article by Beate Meinl-Reisinger in the “Wiener Zeitung” on Feb 11th, 2020: https://beatemeinl.com/2020/02/11/fortfuehrung-der-faymannschen-reformverweigung/)

You are writing that “people are expropriated little by little by the same low interest rate policy every year. Because the money they save, if they succeed at all, becomes less and less worth.” While you deeply regret this fact, I consider it a blessing.

Where does our money come from? Our money always comes from others. The more we take away from others, the richer we get. If this “earned” money multiplies by interest, then the rich get richer and the poor get poorer. This may be a convenient advantage for the richest people on earth, but for all other people on this planet this compound cancer is a devilish torture.

I understand that NEOS, as a liberal party, is fond of “economic liberalism”. Then you have to accept the “free market” even if it doesn’t suit you: Since 2011 we have had negative interest rates on the capital market. The central banks only followed this development shortly afterwards. Under Mario Draghi, the European Central Bank preserved the Euro, the Eurozone, the European Union and, by the way, the peace project of Europe.

There is a lot to say about the balance between east and west, north and south, about Hungarian dentists and Swiss bankers, about German automobiles and Greek beaches, about deforestation of the rainforests and global warming. In short, the negative interest rate means that we now have TOO MUCH money – and not enough resources for it.

Negative interest is a blessing: wealth is redistributed, from rich to poor, from the few to all of us, from grandparents to grandchildren. Some may not like that, but so it is. Thank God.

LG PW

P.S.: However, none of this should prevent Sebastian Kurz from “reforming” properly. Whereby a “debt brake” would be the most stupid of all reforms. Both the famous Austrian “milk girl” and the German “Swabian housewife” can easily calculate what a negative interest rate can only mean for the national debt …

P.P.S.: The profit of one is the loss of all:

https://peterwurm.blog/2013/05/08/der-profit-des-einen-ist-der-verlust-von-allen/ (in German)

The secret of money:

https://peterwurm.blog/2019/10/30/the-secret-of-money/

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s