On: How Low Can Central Banks Go? JPMorgan Reckons Way Lower

[toyg]

It will happen that the rich will get richer, since they are literally paid by central banks to take their money and use it for non-cash assets, which is where their wealth is; and the poor will get poorer, since their economy is cash-based and will not benefit from any interest rate.

You'll have artificial inflation of asset values, likely not followed by salary inflation (because the whole point of negative rates is that the economy sucks), so the poor will get priced out even more.

Negative rates are really, really bad for everyone except the rich. We shouldn't try make them work, we should find new ways to avoid them.

[lintiness → toyg]

the reason for negative interest rates is deflation. any poor person earning a wage of any sort is getting a raise just for working.

[toyg → lintiness]

That compensates itself by shrinking employment numbers, which is what you expect during deflation / crisis (and indeed one of the causes of low rates in general).