As discussed yesterday in “The War on Cash”, the Bank of Japan has followed the ECB down the black hole of negative interest rates. Now, if I told you that your bank was going to charge you to keep your money in the bank, what would you do? Based on Japan’s retail sales, the Japanese people have provided the answer, as they are buying personal safes at an unprecedented rate.
Central Bankers around the world have misdiagnosed the public’s response to their Zero Interest Rate Policy (ZIRP), that is turning into a Negative Interest Rate Policy (NIRP), because they thought people would pull their money out of the bank and spend it, even though their own banks have chosen not to lend their free money. I hope it is getting clearer why they want to go to electronic money.
My prediction for Japan and Europe is a big spike in home break-ins, as thieves are much smarter than Central Bankers. Sadly, there will also be more murders by criminals in these countries, because they are the only ones in these gun-free zones that possess a gun.