Hi Stephen,

I found this story to be very intriguing and had to look at how negative mortgage rates work. To keep the math simple, say the mortgage rate is -5% on a 100,000 house loan. At then end of the mortgage period you will have paid the bank a total of 95,000. Essentially, you bought the house for 5% less than the sales price of the house.

Now, I assume Denmark banks are in business to make a profit. This would give the bank the incentive to charge bank depositors a negative interest rate as well.

Here in the U.S., even though interest rates are falling, the banks continue to have exceedingly high interest rates on credit cards (for those who do not payoff their balance each month). Americans now pay their banks an average 17% interest on credit cards — the highest level recorded by the Fed.

Sure negative mortgage rates sound great but banks will make a profit in the end.

If the inflation rate is directly proportional to the velocity of money then negative interest rates would seemingly spark inflation. Food prices have been rising for quite some time here in the U.S., but it is not reflected in the government's calculation for inflation. Negative interest rates combined with poor crop yields around the world will not bode well for those of us who need to eat food.

I would be interested in reading what you think.

Have a great week!
Steem on,
Mike