Well the problem is that the banks don't really want people's deposits into their saving accounts. Otherwise the interest rates wouldn't be crap. From their stand point, I think they prefer the fees they get from managing money and I feel like storing people's money has gone to the wayside.
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Agreed. They'd have us paying them to for the privilege of letting them lend our money for their profit if they had their way.
I've seen the term negative interest rate come up on and off over the years and it wasn't a threat while everyone could just refuse to deposit cash, but now that almost everyone gets paid via electronic transfer it seems to be coming up more often.
Simply put, most of the institutions humanity built to make civilization possible have turned on us and are dedicated to our enslavement in one way or another.
Blockchain tech is the answer to this, but it, too, is neutral and can be turned against us. I feel like it's imperative we have a foundation of liberty baked into everything we use it for and Cubdefi is a great example of how to do it. It's only financial now, but someday soon we'll use smart contracts and DAOs for things like loans and insurance and who even knows what else. Whatever the use case, the ability to engage or pass is crucial.
CBDCs will make it possible for negative interest rated to be used in places where they currently don't exist. As @taskmaster4450 said, the switch to CBDC will not be voluntary as it will beimposed on us by our governments.
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Yes it will be imposed on us if we still need the government but I’m hoping to be independent of that financial system by then. 🤞
Wait until you get CBDCs. That will put the control of interest rates effectively in the hands of politicians. At that point, they will go negative almost immediately. If they can put money into your digital wallet, they can take it out (or make it evaporate).
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Exactly! In fact, I wouldn't be surprised if the tax to incorporate negative interest rates is built into the initial roll out. Not long ago you discussed the likelihood that CBDCs will be used to roll out a Universal Basic Income. The law put into place to kick that off will undoubtedly include language that is just ambiguous enough to allude to the possibility of a processing fee, or something of the like, that will be glossed over in the beginning but gradually move forward until simply checking your balance drops a few dollars into government coffers.
They need a certain amount of deposits to meet their reserve requirements. After that, they end up either loaning or buying securities with the excess. So the banks do not mind a lot of deposits except when Treasury securities are scarce which is the case right now with the Fed easing.
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Yea but securities are scarce and the deposits right now are essentially liabilities since people can pull out money at any point in time.
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