The system plans to drip you dry if “income” is your goal:
HSBC has become one of the biggest global banks to say it will begin charging clients on deposits in a basket of European currencies.
The decision underlies the extraordinary measures banks are taking to prevent their profit margins being crushed in the record low-interest rate environment.
HSBC has written to other banks to warn it will start charging them for deposits in euros, Swiss francs, Danish krone and Swedish krona — all currencies of countries that have negative interest rates — at its UK, German and Hong Kong operations from this summer.
It is the first UK bank to announce such charges following similar announcements from Swiss, German and Nordic institutions.
“HSBC charges banks for deposits they hold with us in currencies where negative interest rates apply,” the UK-based lender said in a statement on Tuesday. “Banks affected have been notified and we continue to monitor the situation.”
Still trust the authorities?
It must be obvious, from the start, that there is a contradiction in wanting to be perfectly secure in a universe whose very nature is momentariness and fluidity. But the contradiction lies a little deeper than the mere conflict between the desire for security and the fact of change. If I want to be secure, that is, protected from the flux of life, I am wanting to be separate from life. Yet it is this very sense of separateness which makes me feel insecure. To be secure means to isolate and fortify the “I,” but it is just the feeling of being an isolated “I” which makes me feel lonely and afraid. In other words, the more security I can get, the more I shall want. To put it still more plainly: the desire for security and the feeling of insecurity are the same thing.
Want security in your investments? That’s what you crave? That’s your number one goal?
Hint: You will never get there.
Accept that the desire for security and the feeling of insecurity are the same thing, and you are on your way to making some money. Start here.
Source: Watts, Alan W. (2011-11-16). The Wisdom of Insecurity (Vintage) (pp. 77-78).