German bank begins charging customers negative interest as economic collapse approaches

Tuesday, November 25, 2014
By Paul Martin

by: J. D. Heyes
Tuesday, November 25, 2014

In a sane world, developed countries consider financial debt to be a bad thing, especially when it comes to consumer debt, because overwhelming consumer debt is bad when governments are trying to grow their economies.

Growing economies solve a lot of problems for government officials and elected leaders — growing economies provide governments with funding so the government can do the things that its citizens expect it to do: defend them, provide basic infrastructure and perform other services endemic to a modern society.

But when economies do not grow and instead are mired in stagnation, that usually means the general population isn’t doing so well — which, in turn, means the government isn’t doing so well. Such governments don’t have the revenue on hand to perform the functions they are expected to perform, so what do they do? They do what many consumers do, they borrow.

Wait — doesn’t that merely worsen the country’s economic situation by growing its debt? Sure, but the practice works for a little while. It allows government leaders to kick the can down the road, so that future government leaders will have to deal with the country’s financial problems and its ever-growing debt.

Growing debt only worsens an economy

The Rest…HERE

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