by Justin Spittler
Negative interest rates are “upending the world”…
So said The Wall Street Journal in a major front-page story last week. More than $8 trillion worth of government bonds now pay negative interest rates, according to the article. In other words, more than a quarter of the world’s government bonds now pay less than zero.
Dispatch readers know negative rates flip capitalism on its head. Normally, you earn interest on money you lend out or hold in a savings account. In today’s bizarre negative interest rate world, lenders often pay borrowers.
Negative rates are a perversion of savings. They have no place in capitalist society. Yet, thanks to idiot politicians and central bankers, they’re spreading like a plague through the financial system.