Everyone proclaimed that when interest rates go to zero, then there is nowhere lower to go for the Fed. Well, our esteemed Man of Year and theoretical Princeton Professor Benjamin Shalom Bernanke, has come up with a method to bash through this floor of reality.

It comes in the form of the Fed paying interest on Reserves that banks keep with the Fed. This rate is currently .25 percent and is now being suggested by Bennie to be raised to .5 percent. So think about it.... if the interest rate to lend is determined by the cost of money to the bank, then the banks are not only getting 0% or near 0% funds to lend, but additionally getting "paid" or subsidized for the cash they hold with the Fed. By raising or lowering this payola amount, you are effectively lowering the interest rate below zero

Now, you may say.... wait a minute the cash they park at the Fed should be earning interest...... well these "reserves" were actually given to the banks in the form of trillions of dollars of free money. In addition, the Fed removed all the toxic CDOs and mortgage derrivatives waste from the banks balance sheets and replaced them with shiny new Treasury Bonds at 100% par value. The trillions of toxic financial sludge now resides with the taxpayer in this behind the curtains switch-a-roo.

Negative Interest rates impossible ? Not when you are the slimy meal worm like Ben Benanke and have criminal accomplices like Timothy "Tax Cheat" Geithner, Larry "Behavioral Finance" Summers, Jamie "Next Fed Chaiman" Dimon working on your side.