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Financial Times/Richard Milne and Martin Arnold/2-20-2010
“Negative rates turn the principles of finance on their head by forcing commercial banks to pay to store money at the central bank rather than earn interest on it. At the same time, some countries and companies have been paid to borrow.”
USAGOLD note: This Financial Times editorial attempts to flesh out the longer-term implications of below zero interest rates – the winners and the losers; risks and rewards. Will we see negative rates in the United States? Some say it will never happen. Others say it is only matter of time (and another financial crisis).