Japanese firms could stash cash in safes if rates go negative: survey

Sales of safes are now running some 40 to 50% above this time last year, he said.

This could be the ONLY good effect of Bank Of Japan's negative interest rate policy..! Anyway, it's only about the companies and not for their workers to worry about.

A company who was wise with their finances wouldn't have that much cash deposits available to worry about the effects of negative 0.1 interest.

Sales of safes are now running some 40 to 50% above this time last year

A company who was really wise with their finances would remove their money from a bank and not put it in a Secom safe, but instead invest in Secom stock.

But the yen keeps getting stronger which makes no sense to me at all.

Can you all read the writing on the wall?

It has already been discussed in the world finance center of the planet, London England.... The central banks cannot print anymore money (Quantitative Easing), so the last phase for complete control over you (debt slaves) is to REMOVE CASH and make all buying and selling done electronically. I can only imagine that RFID (Radio Frequency Identification Chips) will be implanted in most people in the wake of massive terror attacks (Fake migrants or CIA? plants in Europe) and economic collapses.

Hope you all got your supplies ready by then or enjoy waiting in the rice line! Gold or silver is the only way to protect long term wealth. You`ve been warned!

Most companies and richhome owners already are stashing their cash in safes and have been doing it for years. So, the world's third largest economy (insert cough) is approaching negative interest rates on company investments? Move over Greece. Here comes Japan!

Most companies and richhome owners already are stashing their cash in safes and have been doing it for years.

Yes, this is true.

These companies are almost beginning to sound petulant in their defiance.

"What, you want us to use our money to invest in our business and employees and grow as a company? I'll show you! I'll just put all my money in a big locked box and then no one can have any."

And who would blame them.... why use your cash to invest in the future of Japan.

danalawton1@yahoo.comMAR. 27, 2016 - 11:33AM JST And who would blame them.... why use your cash to invest in the future of Japan.

Who said anything about investing in the future of Japan? Things would be vastly improved by simply investing in the company's own future. At the moment, the most popular business strategy in Japan seems to be: "We must keep prices high so we can stockpile loads of money as a safeguard against the day that our complete failure to modernize our business practices, our leadership, and our equipment coupled with our utter disregard for our workforce cause us to lose money."

These companies are almost beginning to sound petulant in their defiance.

Defiance of what? Defiance of being forced to throw their money away just like the government is? What hope can they have for a return in investing in an economy which is shrinking by hundreds thousands each year? Why should they hire more staff member or raise their pay when the number of future customers and resulting sales are decreasing?

The government is happy to spend money because the money they spend doesn't belong to them, it belongs to us. But businesses have not coerced or extorted money from their customers, they have earned if after long years of effort and risk. They know the value of the money they have earned, and having earned it, they have a right to do whatever they want with it.

Of course they will take out their cash. Like every sensible person would if faced with negative interest. And that right there is the reason for push to abandon cash and make money all-electronic, that is going on in Europe. Once cashless, your freedom is gone. Wait for this "cashless society" monster to raise its ugly head in Japan too.

The modern economy makes the right to cash more valuable in the marketplace than the right to vote. Good money will drive out bad, gold will suffer a comeback, and politicians will be forced into doing a proper job.

The globalist plot to end cash continues, now that most of the exchange rates are at almost equal world-wide, next is to find a way to a. make money with zero interest or b.force the new world currency and government on the people while causing global economic meltdown when less and less people store money in banks since the banks will charge to store the money, either way the banks win. What is the fix? The Peoples Bank, backed by non-globalists sponsors and the hell with the current banking system...There is more power and wealth when the people unite vs the 1%

@dana_lawton1@yahoo.com

And who would blame them.... why use your cash to invest in the future of Japan

This is true. All the wealthy people I know are getting their cash out of Japan. It's a sinking ship.

Buy 30-year US Treasury securities, they pay almost 3% a year. In 30 years the yen will be 360/$ again. Cash in.

the smart companies will just form their own banks or financial institutions since it makes little sense to keep their money in Japan with a negative interest rate. =Harder to do that when you are not a global company. Moreso they are using the cheap money to buy out competitors or innovators.

For individuals it would be better to spread the cash around somewhat. A few months to a year of ¥ back-up. Investments (remember money is cheap now = bubble economy = high stock prices). Emerging markets with a better paying interest rate that value an individual's money.

and why should you blame them, governments charging you to keep your money safe, companies and people can stash there cash in there own safes , we basically give our money to banks interest free now to invest in what they see fit

With a shortage of cash, the bills get to be worth more than their faced value. A smart enterperneur could make a killing on buying or selling or auctioning cash to the highest bidder. So I dont see that the cash will stay frozen away in a company's vault. Its too valuable a comodity.

JeffreyDomer: You strive to speak Truth to Power, but Power is blind, dumb, and mute, and cannot hear your Truth. But we can hear. Youre right. Japan is doomed.

shonanbb: the yens’ value exposes the underlaying value of Japan which depicts the basic value of the population, the country’s greatest asset. Disposal value stays high because of world perception.

we basically give our money to banks interest free now to invest in what they see fit

Banks usually invest in themselves since they offer the best return for the money. Its basically a system of the rich profiting through themselves at the expense of others.

Banks actually are not the best return on money or else they would not need the low interest rates to survive. =Could be a way to finally get all those old "bubble debts" off the books. The more a bank loans out the better they look and the more Gov money they get for said loans. =The bank found a "good/worthy" loan and the Gov will now back them on that with money.

One issue with the negative interest rates is the math. You have the positive interest rate math. Then you must have a second math to compute the negative interest rate. Do people really think Japan banks will change that quickly to accept the new math for money (from the people) the banks do not want.

People need to get out of this negative interest banking and go P2P banking. Be your own bank. Maybe Abe will listen and raise the interest rates. On the extreme is BitCoin P2P banking.

It does NOT mean that if you keep your money at a bank, you will be charged a fee. http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp

An example of a negative interest rate policy would be to set the key rate at – 0.2%, such that bank depositors would have to pay two-tenths of a percent on their deposits instead of receiving any sort of positive interest.

If the shoe fits, then the crime justifies the punishment.

It does NOT mean that if you keep your money at a bank, you will be charged a fee. http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp

An example of a negative interest rate policy would be to set the key rate at – 0.2%, such that bank depositors would have to pay two-tenths of a percent on their deposits instead of receiving any sort of positive interest.

If the shoe fits, then the crime justifies the punishment.

It does NOT mean that if you keep your money at a bank, you will be charged a fee. http://www.investopedia.com/terms/n/negative-interest-rate-policy-nirp.asp

An example of a negative interest rate policy would be to set the key rate at – 0.2%, such that bank depositors would have to pay two-tenths of a percent on their deposits instead of receiving any sort of positive interest.

If the shoe fits, then the crime justifies the punishment.

The bank have every incentive to charge individuals because it gives the bank higher profits. It will be too expensive for people to keep cash, so they will invest it in central banking stocks, which give the highest return.

Also

banks may decide to pass on the extra costs to their customers and charge them to safeguard their cash. <http://www.theglobeandmail.com/report-on-business/economy/what-are-negative-interest-rates-and-how-do-they-work/article27669897/

Banks have no problem charging fees out the wazzoo. Small fish like us have no choice but to pay the banks and hope some of our money if left at the end of it all.

Farmboy;

" The only place that has done anything like you describe, ever, is Switzerland. "

Nope, the ECB is very close to doing this, politicians all over over world, are pushing for negative interest rates. Think about it: they are only the logical extension of trying to "stimulate" the economy by lowering interest rates... but once you reach zero where do you go? Minus is the only territory left.

But negative interest rates can only truly be pushed on the population if if you limit and ultimately remove cash And this is happening already too; all over Europe permissible cash payments are being limited in size. And Sweden has already removed the the law that shopkeeps must except cash, even if it is the legal tender of the country.

But removing cash will not only force you to accept negative interest rates, the implications are much deeper. In a cashless society, your freedom is gone -- you become completely traceble and controllable by the government and the banks.

This is a serious issue, not something to be dismissed.

A problem with negative rates is that it discourage people from depositing money in banks. When people don't deposit money in banks, banks have less money to lend. And banks which have less money to lend will necessarily lend less, and those who need to borrow money will be able to borrow less of it, and likely face a more difficult time in securing a loan.

Once again, we see that neither the government nor the central bank have a clue as to what to do. This is evident in that the effect of raising rates was the opposite of what they expected. But then that is par for the course so far, almost every policy enacted so far has created an unexpected negative consequence.

sangetsu:

" A problem with negative rates is that it discourage people from depositing money in banks "

Yes. And governments and banks know that. And that is why we have the world-wide push for going cashless. (Sweden plans to be there in 3 years.) Once we cashless, negative interest rates can and will be enforced.

Luckily it is not an issue in Japan yet, but you can be sure it will be.

http://www.deposits.org/world-deposit-rates.html

These are the term (deposit) rates among countries. Ok -you can get good term interest rates from another country, but then look at the inflation (money printing). Most (term interest rates) - (inflation) = a negative %

=very hard to find a positive rate of return out of the bunch.

A problem with negative rates is that it discourage people from depositing money in banks

We're talking about firms, not individuals.

When the time comes and the banks go bust you will all breathe easy as you go to open the door of your safe.....