Wealth Accumulation Is Becoming Impossible
The comments below are an edited and abridged synopsis of an article by Keith Weiner
We talk a lot about the falling interest rate, the too-low interest rate, the near-zero interest rate, the zero-interest rate, and the negative interest rate. Tip of the hat to Switzerland, where Credit Suisse is now going to pay depositors -0.85%. That is, if you lend your francs to this bank, they take some of them every year. Almost 1% of them.
A bank deposit comes with a risk. But instead of compensating you for the risk, the bank pays you nothing. So it’s a return-free risk. And worse than that, a negative rate means that you are paying the bank in order to take the risk of lending to them.
Weiner discusses jabberwocky in terms of banks and our deposits; money in the stock market; the conversion of wealth to income; interest matters; and supply and demand with respect to gold and silver.
