Well, last December the Fed decided to raise interest rates by .25 percent in order to start normalizing interest rates. Rates have been way too low for several years. The plan was to keep raising rates a little at a time until they got up to around 3%.

The problem is that as soon as they raised rates .25 percent, the stock market started selling off. The stock market rallied off of all of the free money that the Fed was throwing around and when it couldn’t get free money anymore, it started dropping.

Well, the Fed can’t leave anything alone to take it’s natural course, so now they are talking about going as far as having negative interest rates. To be fair, a few other countries are already there. There have even been government bonds sold at negative interest rates.

This boggles my mind why any sane person would loan a highly indebted government money, knowing they are going to get less money back in the future (if they get their money back at all).

The fact that Federal Reserve is discussing the idea of negative interest rates, tells me that they are truly desperate. They really can’t control the economy like they like to think they can. It’s like they have an accelerator and a brake, but no steering wheel. So they either try to speed up or slow down, but they can’t really control the direction this thing is going.

I think their back is up against the wall and they are almost out of bullets. If they go negative with interest rates, how far will they go? Will banks start charging depositors for giving them money? If they do that, will people try to start drawing cash out of the banks?

It won’t take too many people demanding cash for the banks to be in trouble. We could end up seeing cash illegal to use. They are already talking about doing away with $100 dollar bills.

With a cashless society, it would be a lot easier to control people and their money. Everything could be tracked! You wouldn’t be able to by a pack of gum without it being tracked to you. Is this the kind of world you want to live in?