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Tag Archives: negative interest rates
The World Has Gone Mad and the System Is Broken
The World Has Gone Mad and the System Is Broken I say these things because: Money is free for those who are creditworthy because the investors who are giving it to them are willing to get back less than they give. More specifically investors lending to those who are creditworthy will accept very low or negative […]
ECB “Whistleblowers” Emerge: Former Central Bankers Cry Out Against Draghi’s Monetary Insanity
ECB “Whistleblowers” Emerge: Former Central Bankers Cry Out Against Draghi’s Monetary Insanity It’s not just disgruntled CIA officials that have decided the best way to stage a coup is by way of “whistleblowing” – former central bankers are using a similar approach when it comes to the root cause of all of society’s ills: failed […]
We Finally Understand How Destructive Negative Interest Rates Actually Are
We Finally Understand How Destructive Negative Interest Rates Actually Are We are in the midst of a strange economic experiment. Vast quantities of negative-yielding debt are currently sloshing around the global economy. While the amount of negative-yielding bonds has dropped recently from a mind-boggling number in excess of $17 trillion, reinvigorated central bank easing across […]
The Disaster of Negative Interest Rates
The Disaster of Negative Interest Rates The dollar strengthened against the euro in August, merely in anticipation of the European Central Bank slashing its key interest rate further into negative territory. Investors were fleeing into the dollar, prompting President Trump to tweet on Aug. 30: The Euro is dropping against the Dollar “like crazy,” giving […]
Negative Interest Rates are the Price We Pay for De-Civilization
Negative Interest Rates are the Price We Pay for De-Civilization Do central bankers really think negative interest rates are rational? “Calculation Error,” which Bloomberg terminals sometimes display1, is an apt metaphor for the current state of central bank policy. Both Europe and Asia are now awash in $13 trillion worth of negative-yielding sovereign and corporate […]
The Importance Of A Resilient Life
The Importance Of A Resilient Life In the end, it will mean all the difference My business partner Adam and I recently met with a successful business owner whose career began on Wall Street. The kind of guy who should be rooting for the system, because it has treated him well. Instead, he was quite […]
How Is Negative Interest Possible?
HOW IS NEGATIVE INTEREST POSSIBLE? Germany has recently joined Switzerland in the dubious All Negative Club. The interest rate on every government bond, from short to 30 years, is now negative. Many would say “congratulations”, in the belief that this proves their credit risk is … well … umm … negative(?) And anyways, it will […]
Negative Interest Rates Threaten the Financial System
Negative Interest Rates Threaten the Financial System Markets may need to be rebuilt on a new set of assumptions, but we don’t know what those should be or how they would work. Jim Bianco is the President and founder of Bianco Research, a provider of data-driven insights into the global economy and financial markets. He may have […]
Lagarde Praises Negative Rates, Study Shows They Reduce Lending
Lagarde Praises Negative Rates, Study Shows They Reduce Lending Incoming IMF chief Christine Lagarde says negative rates have helped Europe more than they’ve hurt. I disagree. The nearly always wrong Christine Lagarde is wrong once again. Today she claims Negative Rates Have Helped Europe More Than They’ve Hurt. The next head of the European Central Bank, […]
“Money For Nothing And Growth For Free”: Dutch Considering €50BN Growth Fund Financed With Negative Rate Debt
“Money For Nothing And Growth For Free”: Dutch Considering €50BN Growth Fund Financed With Negative Rate Debt The Dutch coalition government is reportedly considering a EUR 50 bn investment fund to support economic growth, to be financed by borrowing at negative rates Many details are yet to be determined, but the Netherlands should have sufficient […]
Negative Interest Rates Are Extremely Toxic
Negative Interest Rates Are Extremely Toxic Jim Bianco, President of Bianco Research, cautions against evermore unconventional monetary policy interventions. He fears that the global slowdown is going to get worse and he spots opportunities in long-term bonds and gold. The global economy is on the brink: Europe is headed for recession, Japan as well and […]
The Mechanics of Absurdity
The Mechanics of Absurdity Over the past few decades, the central banks, including the Federal Reserve (Fed), have relied increasingly on interest rates to help modify economic growth. Interest rate management is their tool of choice because it can be effective and because central banks regulate the supply of money, which directly effects the cost to borrow […]
Dead Meat in Jackson Hole
Dead Meat in Jackson Hole The Pointlessness of Negative Yields If there are any virtues of debt instruments with negative yields we have yet to realize them. Certainly, we understand that as bond yields fall, bond prices rise, and bond investors are rewarded with capital appreciation. But when capital is appreciating as a consequence of negative yields, […]
BofA: Central Banks Are Creating Bubbles Instead Of Helping The Economy; The Result Will Be A Disaster
BofA: Central Banks Are Creating Bubbles Instead Of Helping The Economy; The Result Will Be A Disaster In recent weeks we have seen a surprising spike in criticism of central banks by establishment figures, in some cases central bankers themselves, most notably Mark Carney who last Friday remarkably admitted that very low interest rates tend “to coincide […]
