What's a NIRP?...............................from Rico

A friend just asked me what a NIRP was.

 

Technically, NIRP is a Negative Interest Rate Policy.

- But "what does it mean?" is a very good question.

 

NIRP = Your Bank charging YOU to be their customer is what it means.

 

Nawww!! Get outta here, that's a sucker's deal.

- Only a complete mug would fall for that you might say, but when ALL the Banks are doing it, what choice do you have?

 

Once upon a time, pre-FATCA, I deposited some cash in a Japanese Bank. When I checked the balance upon returning from a trip, it was smaller by a fractional amount, but enough that I asked them WTF?

- Financially troubled Japan and her Banks had gone NIRP and customers were being charged by the Bank for the privilege of being customers. I closed the account, at a small loss, before things got worse.

 

Financially troubled EUropean Banks have started to go NIRP.

 

Expect to see this next in financially troubled America.

 

Ask: Is this for YOUR own good, or for the Banks?

- Take your medicine as prescribed...or have a backup plan, like the Greeks and Ukrainians who are now going for the Gold as their economies implode.