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Tag Archives: negative interest rate policy
Hang Onto Your Wallets: Negative Interest, the War on Cash, and the $10 Trillion Bail-in
Hang Onto Your Wallets: Negative Interest, the War on Cash, and the $10 Trillion Bail-in In uncertain times, “cash is king,” but central bankers are systematically moving to eliminate that option. Is it really about stimulating the economy? Or is there some deeper, darker threat afoot? Remember those old ads showing a senior couple lounging on […]
The Mad Euro Project Just Got A Lot Madder
The Mad Euro Project Just Got A Lot Madder Feeding a Monstrous Pile of Debt. Under Mario Draghi’s radical stewardship, the ECB seems determined to push the limits of monetary experimentation. And by all accounts, it’s succeeding. This week saw numerous eurozone governments sell bonds at negative rates, an economic anomaly that has no place […]
Here’s What Happens When Central Banks Go Broke
Here’s What Happens When Central Banks Go Broke On Friday, in “Is Mario Draghi About To Go Full-Kuroda? RBS Says ECB Could Buy Stocks,” we took a closer look at what the ECB’s options are when it comes to implementing further easing measures come December. As a reminder, Mario Draghi telegraphed either another depo rate […]
The Mindless Stupidity of Negative Interest Rates
The Mindless Stupidity of Negative Interest Rates Here we are in the midst of The Great Stagnation Middle Class Elimination and some central bankers and mainstream economists are promoting negative interest rates. One economist was quoted in a Marketwatch piece by Greg Robb as saying, “…pushing rates into negative territory works in many ways just like […]
“Cash Is Coined Freedom”: War on Cash Becomes Official in Germany, Reaches G-7, Draws Withering Fire
“Cash Is Coined Freedom”: War on Cash Becomes Official in Germany, Reaches G-7, Draws Withering Fire It came from a voice that has, by law, the ear of the German government. Peter Bofinger is a member of the German Council of Economic Experts – the “Five Sages on the Economy” – which in its official […]
“Stop Being So Negative”: Putting It All Together
“Stop Being So Negative”: Putting It All Together Putting it all together Considering: 1) governments are unable to eliminate deficits 2) global government debt is increasing exponentially 3) 0% interest rates are allowing governments to borrow more to pay off old loans and fund deficits 4) Global growth is declining despite money printing and bailouts […]
The Committee To Destroy The World
The Committee To Destroy The World Last month, the world mourned the death of beloved actor Leonard Nimoy. Mr. Nimoy, of course, was renowned for his portrayal of the iconic character Mr. Spock on the 1960s television series Star Trek. One of the most memorable Star Trek inventions was the transporter that allowed human beings […]
Australia To Start Taxing Bank Deposits
Australia To Start Taxing Bank Deposits Up until now, the world’s descent into the NIRPy twilight of fiat currency was a function of failing monetary policy around the globe as central bank after desperate central bank implemented negative and even more negative (in the case of Denmark some four times rapid succession) rates, hoping to […]
The End of the Great Debt Cycle
The End of the Great Debt Cycle “It’s the end of the great debt cycle,” says hedge fund manager Ray Dalio of Bridgewater Associates, taking the words out of our mouth. Bond fund manager Bill Gross adds context: In the past 20 to 30 years, credit has grown to such an extreme globally that debt […]
ECB Will Cut Rates To Minus 3%: JP Morgan
ECB Will Cut Rates To Minus 3%: JP Morgan A running theme here over the past several weeks has been that the ECB’s €1.1 trillion foray into quantitative easing will be severely hindered by a laundry list of constraints (some of which were unwittingly self-imposed). Another topic we’ve covered exhaustively is the idea that the world’s central […]
In “Paranormal” Europe, Banks Will Pay You To Borrow, And Charge You To Save
In “Paranormal” Europe, Banks Will Pay You To Borrow, And Charge You To Save A month ago, we wrote about a bizarre situation involving Denmark’s now totally broken monetary system, where as a result of an unprecedented scramble to weaken the currency in order to preserve the peg to the Euro the central bank unleashed […]
Sweden Central Joins The NIRP Club: Lowers Interest Rate To -0.1%, Launches QE
Sweden Central Joins The NIRP Club: Lowers Interest Rate To -0.1%, Launches QE It’s a NIRP world and you are either in it, or are determined to lose the currency wars. And hours ago, the world’s oldest central bank, that of Sweden, announced that it too would join its NIRP peers in an attempt to […]
Paul Singer Warns “The Consequences Of Monetary Manipulation Are Unknowable”
Paul Singer Warns “The Consequences Of Monetary Manipulation Are Unknowable” The world believes it is in a sweet spot. There is global consensus that central banks know what they are doing and are in control, and that if economies falter, a bigger dose of QE or ZIRP or NIRP (negative interest rate policy – we just […]
Swiss National Bank scraps euro cap
Swiss National Bank scraps euro cap (Reuters) – The Swiss National Bank unexpectedly scrapped its cap on the franc on Thursday, sending the safe-haven currency crashing through the 1.20 per euro limit it set more than three years ago. Minutes after the announcement the franc had soared by almost 30 percent in value against the […]
