Negative interest rate

UPD Or a tale about how banks are trying to preserve the function of money.

Recently in Denmark, mortgage borrowers received their first payments from banks - a reward for ... using a loan.

It sounds strange, but the premium for using the loan is a direct consequence of the fact that the central banks of some countries set negative interest rates several years ago. Banks and borrowers are still trying to get used to the fact that the interest rate on a loan can be -0.0562%, for example, like the Danish Hans-Peter Christensen, writes the Wall Street Journal (translated by Vedomosti).

In the last quarter, the Dane received 249 kronor ($ 38) from the bank. “My parents said that I have to hang this receipt in a frame to prove to future generations that this really happened,” says Christensen.

With the help of negative interest rates, central banks are trying to stimulate the economy by making loans more affordable. Such measures have already been taken by the European Central Bank, Bank of Japan, Switzerland, Sweden and Denmark. For the last three, negative rates are not just an economic stimulus, but a means to adjust the exchange rate of national currencies against the euro.
https://geektimes.ru/post/274536/

An interesting situation has developed in the world of economics. Even Karl Marx predicted in capitalism the tendency of the rate of profit to fall. But even Marx could not imagine that percentages could turn negative.

The EU has already introduced a negative interest rate to stimulate the real sector of the economy. Banks will have to pay for keeping their reserves in vaults. Deflation has set in in Europe. This is not beneficial for the authorities, they need inflation so that citizens feel a tendency to depreciate money, and they, in turn, must invest it somewhere. But since citizens decided to invest mostly in deposits in banks (purchasing power has decreased since 2013), they had to withdraw money from banks so that they would start spinning continuously, and depositors would not lose their money (under the OPS policy). Gold prices also had to be increased (upd: for a short time)

The United States has long been pursuing a policy of lowering the interest rate. And she's almost at zero. The aim of lowering interest rates, as in the EU, is to create an impulse for economic growth. However, the targeted lowering of interest rates encourages the creation of a speculative demand for assets. Demand for debt is high, while real interest rates remain negative. Negative government yield bonds leads to a decrease in interest payments on government. debt.
By the way, it is already 60 trillion.

Perhaps we are living in historical times, gentlemen.