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Tag Archives: nirp
Mises.org: And So It Begins…Negative Interest Rates Trickle Down in Japan
MISES.ORG: AND SO IT BEGINS… NEGATIVE INTEREST RATES TRICKLE DOWN IN JAPAN The negative interest rates imposed by the Bank of Japan have begun to make their way into the Japanese banking system. Japanese trust banks have begun to impose negative interest rateson accounts held by institutional investors. It shouldn’t be surprising that Japanese banks are […]
The Path to the Final Crisis
The Path to the Final Crisis Reader Questions on Negative Interest Rates Our reader L from Mumbai has mailed us a number of questions about the negative interest rate regime and its possible consequences. Since these questions are probably of general interest, we have decided to reply to them in this post. The NIRP club […]
Interest Rates Are Never Going Back to Normal
Interest Rates Are Never Going Back to Normal Grotesque Mutants BALTIMORE – Let’s see… U.S. corporate earnings have been going down for three quarters in a row. The median household income is lower than it was 10 years ago. And now JPMorgan Chase has increased its estimated risk of a recession to about one in […]
Why Negative Rates Can’t Stop the Coming Depression
Why Negative Rates Can’t Stop the Coming Depression A bird in the hand is worth two in the bush. – Anonymous. In our upcoming issue of The Bill Bonner Letter, we explore the strange territory of “NIRP” – negative-interest-rate policy. About $7 trillion of sovereign bonds now yield less than nothing. Lenders give their money […]
The ECB – A Victim of its own Ignorance?
The ECB – A Victim of its own Ignorance? “Rates will stay low, very low, for a long period of time and well past the horizon of our purchases,” Draghi declared. “From today’s perspective and taking into account the support of our measures to growth and inflation, we don’t anticipate that it will be necessary […]
Hillary’s Scary New Cash Tax
Hillary’s Scary New Cash Tax Have you heard of “negative interest rates”? It’s become a phenomenon with economists and the media. There’s a good chance you’ve read an article about it. We’ve covered it many times in the Dispatch. I’m writing to tell you something about negative interest rates you haven’t heard. You certainly […]
Never Go Full-Kuroda: NIRP Plus QE Will Be Contractionary Disaster In Japan, CS Warns
Never Go Full-Kuroda: NIRP Plus QE Will Be Contractionary Disaster In Japan, CS Warns In late January, when Haruhiko Kuroda took Japan into NIRP, he made it official. He was full-everything. Full-Krugman. Full-Keynes. Full-post-crisis-central-banker-retard. In fact, with the BoJ monetizing the entirety of JGB gross issuance as well as buying up more than half of all […]
The Financial System Is A Larger Threat Than Terrorism
The Financial System Is A Larger Threat Than Terrorism In the 21st century Americans have been distracted by the hyper-expensive “war on terror.” Trillions of dollars have been added to the taxpayers’ burden and many billions of dollars in profits to the military/security complex in order to combat insignificant foreign “threats,” such as the Taliban, […]
Why Helicopter Money Can’t Save Us: We’ve Already Been Doing It For 8 Years
Why Helicopter Money Can’t Save Us: We’ve Already Been Doing It For 8 Years There’s a lot of talk going around these days about “helicopter money.” For those unfamiliar, it’s billed as a kind of last Keynesian resort when ZIRP, NIRP, and QE have all failed to boost aggregate demand and juice inflation. For instance, HSBC […]
Deutsche Bank Discovers Kuroda’s NIRP Paradox
Deutsche Bank Discovers Kuroda’s NIRP Paradox Last October, BofA looked at Europe’s €2.6 trillion in negative-yielding debt and discovered something “stunning”: Savings rates were going up not down. Don’t believe us, just have a look at these three charts: But how could that be? By all accounts – or, should we say, by all conventional Keynesian/ textbook accounts – […]
It’s a revolution: German banks told to start hoarding cash
It’s a revolution: German banks told to start hoarding cash Just stunning. German newspaper Der Spiegel reported yesterday that the Bavarian Banking Association has recommended that its member banks start stockpiling PHYSICAL CASH. Europe, of course, has been battling with negative interest rates for quite some time. What this means is that commercial banks are being charged […]
Where Negative Interest Rates Will Lead Us
WHERE NEGATIVE INTEREST RATES WILL LEAD US Despite zero-interest-rate-policy (ZIRP) and multiple quantitative easing programs — whereby the central bank buys large quantities of assets while leaving interest rates at practically zero — the world’s economies are stuck in the doldrums. The central banks’ only accomplishment seems to be an increase in public and private […]
The Global Run On Physical Cash Has Begun: Why It Pays To Panic First
The Global Run On Physical Cash Has Begun: Why It Pays To Panic First Back in August 2012, when negative interest rates were still merely viewed as sheer monetary lunacy instead of pervasive global monetary reality that has pushed over $6 trillion in global bonds into negative yield territory, the NY Fed mused hypothetically about […]
