#NIRP and its effects

We have been experiencing zero and negative interest rates for a while now. In Europe nine years have passed since the unconventional policy has been adopted, with no effect on the real economy, all the imbalances are still there. When we use an emergency tool for nine years (and declare the intention to keep adding), we need to accept we are no more in an emergency, this is the new structure we want to live with.

We are told we are flushed with free money, there is so much that we need to pay a price to whoever offers us the costody service. The act of #printing so much #money seems to create just one main problem: where do we store it? We need to store it because it is not moving to where it is needed, because the only economical actor capable of collecting this exceptional flood has decided not to use it (the government is this way taxing us for no reason, killing our #savings without a project). One other reason supporting the demand for its storage is also given by the mildly negative inflation we have on European consumer prices, clashing with the positive inflation of the incomes of financial institutions bosses (they are now earning not only unheard of multiples of the average pay of their employees, they very often exceed the annual sales of many small enterprises they “service”).

We are discovering new multiples, the importance of a strong “glue” defending some rents, we’ll keep learning more and more.

 

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