Hi Everyone,
We'd like to start out today by making a small correction. In fact, yesterday's newsletter broke a record in terms of the number of people who replied, and that was of course due to the poor choice of words used in the title "Dutch Negative Money."
In fact, the particular bank we were speaking about was the financial institution Danske Bank, which is Danish and not Dutch.
Most Americans can easily get away with such geographic faux pas, but I really have no excuse.
Further, it has been pointed out that negative interest rates in that part of the world are already considered standard operating procedure for accounts above €100,000, and Danske bank was simply lowering the limbo stick.
We can only expect the stick to keep getting lower as the music plays on.
It's not that it's the bank's fault, per se. The European Central Bank has been experimenting with negative interest rates, a policy that incentivizes borrowing while punishing savers, for nearly seven years, and it's only going deeper.
