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Old 08-10-2019, 12:04 PM
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Banks are starting to charge to hold money .

This hasn't happened in Australia yet but it's coming .

Lifted this of the net today .....

GOING OFF THE RAILS: Banks Charging To Hold Cash
So this is where negative rate policy starts to go off the rails, when people start calculating the cost of losing money on their deposits vs digging holes in the ground to store the cash. Berliner Volksbank, Germany’s 2nd biggest co-op bank is now putting on a .5% tax on any deposits north of 100,000 euros. They are now one of 34 German banks that are now charging customers in some fashion. Last Thursday Spar Nord Bank in Denmark said they are taxing retail customers .75% (the level of their central banks deposit rate) on deposits above 750k kroner which is a bit above $100,000. It’s time to buy stocks of those companies that make shovels…


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Old 08-10-2019, 12:27 PM
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I do so wish this was a problem I was going to have to deal with!
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Old 08-10-2019, 12:44 PM
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Me to Chris, they will never get a cent out of me either.

Leon
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Old 08-10-2019, 12:46 PM
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Don’t they have to have a certain deposits to loans ratio.
If they inhibit deposits they inhibit their ability to loan.
Greg
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Old 08-10-2019, 12:49 PM
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I suppose you could compete by charging half that fee for holding their cash. Minimum deposit 100k of course
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Old 08-10-2019, 12:55 PM
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And then they(?) will tell you, or better yet from their viewpoint, you will scream in disgust:

"Well there's a way out of all this we'll just go to digital currency for bank accounts and all forms of cash holdings. We don't need cash in today's modern age".

And then it's done, just the way they wanted in the first place. And then, you're ......

Best
JA
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Old 08-10-2019, 01:29 PM
LewisM
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I've got all our savings in Gringot's Bank.
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Old 08-10-2019, 01:50 PM
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Our retirement portfolio simply won't hold much cash at all if they try that stunt here. (given the current rate of inflation our term deposits are effectively at zero now)

There are other asset classes...e.g. bullion, real estate. That will either appreciate or generate income.

Seriously...they must have a crack habit if they think you'd want to park money in a Bank account and be charged for doing so.

You'd literally be better off keeping it under the mattress.

Or perhaps buy shares in a Safe Manufacturer.
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Old 08-10-2019, 01:53 PM
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I wonder if it is good idea to move the cash into Super ?

What is the cap?
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Old 08-10-2019, 02:05 PM
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Quote:
Originally Posted by Peter Ward View Post
You'd literally be better off keeping it under the mattress.

Until the gov just declares cash not legal tender anymore sorta like India did with their high value banknotes (which IS something the Aussie government is interested in doing).

China has been counterfeiting bullion for years and India flooding markets with treated low grade stones as fake gems. I'd say invest in Paddles, considering the Creek everyone will soon be swimming in.
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Old 08-10-2019, 03:28 PM
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Then, I'll start charging them for using my money as ' loans ' to their other customers .... if only.
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Old 08-10-2019, 04:15 PM
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There's an easy solution to this:

With interest rates going into negative territory, just borrow some money - the bank will pay you to borrow money, and with the negative interest earned on a loan, you can pay the interest owing on your deposit account!

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Old 08-10-2019, 04:17 PM
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Quote:
Originally Posted by julianh72 View Post
There's an easy solution to this:

With interest rates going into negative territory, just borrow some money - the bank will pay you to borrow money, and with the negative interest earned on a loan, you can pay the interest owing on your deposit account!

Absolutely ridiculous Julian...
...


...It might just work
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Old 08-10-2019, 04:59 PM
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Quote:
Originally Posted by julianh72 View Post
There's an easy solution to this:

With interest rates going into negative territory, just borrow some money - the bank will pay you to borrow money, and with the negative interest earned on a loan, you can pay the interest owing on your deposit account!

Hi Julian,

As you are probably aware, at least in the case of the widely publicized
negative interest rate load being offered by a large Danish bank, they
don't actually give you the interest directly back into your hand,
but every month your debt is reduced by more than the amount you pay.
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Old 08-10-2019, 07:26 PM
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Hi,

It's for deposits over 100,000. Some companies need to hold large amounts of cash. They can either pay the 0.5% or they can buy multiple safes in all their offices and hire people to guard them. Then they can pay an armoured car to drive the cash around to the places they need to pay.

All in all I think you will find most companies would pay the 0.5%

Cheers
Paul
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Old 08-10-2019, 07:32 PM
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What should we expect when money is not tied to gold...I know I am old fashion but printing what you want (Governments) is wrong.
I could not believe when a certain head dude in a certain important bank in a certain other country said...There is no problem with cash we can just print more... Anyways we are doomed..it boils down to this...too many peoe with too much money...fix it..how...spiral the economy into depression...make money valuable again for those that have any left so they can buy the assets of those who simply could not survive.
This is a big problem for me...I have been avoiding action but Gary's news tells me I must act...I have found water profitable...maybe more dams...gold...I bet this is a ploy to get folk to buy gold...mmm. No interest let's buy gold...It's a game...let's follow the money..who is benefiting from this...it's hard to tell...a collapse is the only way a select few can benefit...I can see it now...pension funds etc life savings ..gone...where ..to who...do what they do and all will be ok.
Alex

When has this happened before in history?
What happened?
I am very concerned ..there must be a way to take advantage...borrowing??? Well if you do interest rates will go back up no doubt.
This must have ramifications on share prices..which ones...where is value... It's the end of the world I can feel it.
Alex

If capital is valueless one could think labour should be more valuable but who can pay? There is only one answer...ww3.
Alex

Last edited by RB; 08-10-2019 at 07:48 PM.
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Old 08-10-2019, 07:49 PM
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Quote:
Originally Posted by bojan View Post
I wonder if it is good idea to move the cash into Super ?

What is the cap?
The last time I looked at this, once you reach 65, you cannot make super contributions without meeting the ‘work test’ (need to work for a minimum of 40 hours in any 30 consecutive day period to make voluntary contributions to your super account).

However, the government announced before the May 2019 budget that the ‘work test’ in superannuation will no longer apply between the ages of 65 and 67 from 1st July 2020. This legislation has not yet been passed.

If you meet all the conditions, I understand this will allow you to make non-concessional contributions of up to three times the normal annual cap (currently $100,000), so the bring-forward amount is $100,000 x 3 = $300,000.

However, things may have changed...

Cheers

Dennis
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Old 08-10-2019, 08:04 PM
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https://www.theguardian.com/business...-from-the-dead


Well its not australia but some of the points made do sit well with whats going on here , I cant see an easy fix and have thought that for a few years now .
We see infastructure investment as roads and solar panels never education and no student debt , tax loopholes for property investment debt and institutional money is so ingrained now it cant ever change

while this stuff is differant in a way from the US its a part of a bigger picture thats essentially the same ?

Last edited by GrahamL; 08-10-2019 at 08:29 PM.
  #19  
Old 08-10-2019, 08:10 PM
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Quote:
Originally Posted by bojan View Post
I wonder if it is good idea to move the cash into Super ?

What is the cap?
Buy baked beans in cans.
Start a vegie garden, get some chooks and dig a well. Look at history this is a very very very bad sign. When money is worthless..and that is what this tells us...civilizations collapse...baked beans in cans may not seem stupid advice in six months from now.
I am planting vegies, getting some chooks and some goats and some shotguns.

Alex

Quote:
Originally Posted by gregbradley View Post
Don’t they have to have a certain deposits to loans ratio.
If they inhibit deposits they inhibit their ability to loan.
Greg
Think it through.
They have more money than can be used.
That is the problem.
Alex

Think about this....
You can become a millionaire by riding a skate board...cage fights now offer million dollar prizes..even moto cross has million dollar events...something is wrong. Too much money.
Alex

Last edited by RB; 08-10-2019 at 08:47 PM.
  #20  
Old 08-10-2019, 08:47 PM
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Quote:
Originally Posted by xelasnave View Post
...baked beans in cans may not seem stupid advice in six months from now...........

Alex
What? End of the world as we know it? Zombie apocalypse in the New Year?

I predict the NYE fireworks will still go off, and if interest rates fall to zip
assets will become quite expensive...except maybe tinned beans, still likely to be $1.00 a can in Aldi.

As for eating baked beans with shotgun at the ready in the bomb shelter....could be risky
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