Negative Interest Rates (?)
When central banks loan fiat to other banks, the central bank creates fiat out of thin air, loans that fiat to other banks, and then charges other banks interest on that fiat.
With this in mind, when a central bank sets a negative interest rate, would this not imply that the central bank is actually paying other banks to borrow the fiat created out of thin air. In theory, the lesser banks still have to pay back the loan to the central bank, but the central bank pays them to borrow the money. Is my thinking on this correct?
If the above is correct, then the local banks need not necessarily charge regular customers negative interest rates, that is charging customers it keep their fiat. But since they are being paid by the central bank to borrow money, they can loan fiat to customers at less than the normal usury rate, still make a guaranteed return, and put more fiat into the economy to stimulate spending and hence growth.
Truth be told, BitGold is technically offering us negative interest in the form of transaction fees to hold our money. We pay BitGold to hold our gold.
Gold is money, everything else is credit - author unknown
Money is gold, and nothing else - J. P. Morgan, 1912