As policy rates have moved to sub-zero for banks in parts of Europe and now Japan, the threat of negative rates being passed on to consumer deposits is real. ‘Central banks gone mad’ are destroying financial stability, but they are boosting safe sales at least. This is a logical response from consumers; but driving cash out of an under-capitalized banking system is self-destructive policy. Their next bright idea will be to mandate that cash in hand is worth less than digital currency…or some have mentioned banning cash altogether. Time to take the controls away from the crazy folks anyone?
Demand for safes has jumped in Japan as people look for options to stash their cash following the the Bank of Japan’s introduction of negative interest rates. Here is a direct video link.
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