In A World Of Negative Interest Rates Time Has No Value

Hey Jessecomics majors

There's an old saying that "time is money" and for many years that used to be true. You traded your time thinking or providing labour or services in exchange for money. You invested your wealth with others who used it to produce value, and you would get a return based on an agreed % of the profits called interest rates.

Earning money using your time effectively is how most people accumulate wealth but now in this crazy world of central banking and fiat money, we've got to a point where time has no money and this is called negative interest rates. The Japanification of the west is coming, it's already well-rooted in Europe now and if Trump gets his way the US will enter the negative interest world sooner rather than later.

Image source: - bankingexchange.com

The slaveowners have a new whip

Negative interest rates have far-reaching implications, far more than I care to try to delve into one a simple blog post so I'll only focus on what it means for us prowls who have to deal with the effects of monetary vandalism.

In a functioning economy, a consumer should have the choice to spend their wealth to accumulate or store it at a later stage to be used to survive, purchase big-ticket items or to invest in others and support businesses who will reward their faith in the capital with a return.

When you have negative interest rates for the consumer you actively punish them for trying to store their wealth and encourage them to spend it. Consumers want to get the most for the money to accumulate and because timing is important to get the right deal and allocate capital to the best deals you pushing consumers to even more frivolous spending.

These impulse purchases don't stimulate the economy in the healthiest manner as all spending is not created equal. Spending to get a return in value only helps validate companies who shouldn't actually be running as they rely on impulse purchasing and not on providing actual value to the user.

Pays to load up on debt

But it doesn't stop there, in a negative interest economy it pays to load up on debt as you pay back less than you borrowed and it encourages consumers to load up on debt. The issue with this is that it pushes consumers to further into the hole and should interest rates ever rise they would be in a trap they cannot escape from or become bankrupt.

A negative interest rate makes debt seem like a better option to transact than the actual value and as we continue to borrow to live we live on borrowed time.

Have your say

What do you good people of steem think? Are you for negative interest rates? Do you think we can survive in a world of negative interest rates?

Holla at me in the comments! All my commenters I will now refer to as Jessie. Jessie is a good friend of mine, but Jessies got a girl, and I want to make her mine.

So have at it my Jessies! If you don't have something to comment, simply comment "I am a Jessie."

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