First of all big time Krug fan here. Enough that I flew to West Coast for an amazing offline vertical. I have bought a bunch of 96 years ago and happy I did. Picked up 3 of the 04 for probably 220 a btl plus tax locally which was lowest I could find.
Now a trusted retailer I do business with online is offering them on sale for $209.99 . Pondering whether to buy 3 more or save my funds for some of Envoyers yet to be offered specials. Any thoughts?
Negative interest rates are very, very difficult to think about.
In theory, if, on January 1st, the Fed loaned you $100, at an interest rate of -5%, then circa December 31st of that year, you would only owe the Fed $95.
And circa December 31st of the following year, you’d only owe the Fed (0.95) * (0.95) = $90.25.
And so on & so forth.
I imagine the commercial banks would implement it thusly: You deposit $100 in your savings account on January 1st, and thereafter you don’t touch the account at all, for the entire year, but then circa December 31st of that year, suddenly you’d have only $95 remaining in your savings account?
But I’m still having a great deal of difficulty thinking about this [other than that the entirety of statutory & Common Law would have to be rewritten to accommodate negative interest rates, and all existing contracts would have to be voided].
I would be tempted at that price. Who is the retailer? I like Krug a lot, and bought a bunch of the MV 160 (2004 base). Loved it. There is some good material that year.