“Who are these men?” That is a quote from a Paul Newman movie called “The Verdict”. It isn’t about Central Bankers setting interest rates, but it might as well be. Last night, the Bank of Japan (BOJ) went to a negative interest rate policy (NIRP). That is a giant step towards banks charging to hold depositors money. Initially the move will have its impact on the relation between banks and the central banks. Eventually it will trickle down to the commercial banks and their relationships with their customers and depositors. BOJ has been the lead sled dog headed for the cliff since 2000 when they were the first central bank to move to zero interest rates (ZIRP). The effort is part of a Keynesian effort to depreciate the currency, stimulate trade, and basically dig out of their economic hole with a devalued and cheaper currency. The United States and others went to ZIRP circa 2008, and we continue to follow the failed and flawed policies of Japan...(Read Full Post)