{"id":13976,"date":"2015-10-31T06:36:51","date_gmt":"2015-10-31T11:36:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=13976"},"modified":"2015-10-31T06:36:51","modified_gmt":"2015-10-31T11:36:51","slug":"time-to-keep-your-cash-in-the-microwave","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=13976","title":{"rendered":"Time to Keep Your Cash in the Microwave?"},"content":{"rendered":"

Time to Keep Your Cash in the Microwave?<\/a><\/h3>\n

The Fed\u2019s Big Pivot<\/strong><\/p>\n

NORMANDY, France \u2013 \u201cNow, I think I\u2019ve seen everything\u201d is an expression that \u2013 like \u201cthis is the end of history\u201d and \u201cI\u2019ll never leave you\u201d \u2013 usually turns out to be premature. But it is what we found ourselves saying yesterday. Not out loud. We just moved our lips in mute amazement.<\/p>\n

\"micxrowave\"Modern cash storage method pioneered by desperate Swedes
\nPhoto credit: SWNS.com<\/p>\n

On Tuesday, the Italian government sold a 2-year note yielding MINUS 0.023%. We don\u2019t know what is more preposterous: that the Italians were able to borrow money at a negative nominal interest rate or that the press reported this transaction with a straight face.<\/p>\n

\"Italy,<\/a>Everything is awesome: an essentially bankrupt government sells two year notes at a negative yield! Today\u2019s make-believe world created by central bankers and regulators is probably the biggest economic powder keg yet \u2013 click to enlarge.<\/p>\n

It should have provoked howls of laughter, withering scorn, and unvarnished derision. But here at the\u00a0Diary<\/em>, we will not point the finger and chuckle. We will not invoke our usual tone of sarcasm. We will not damn the whole thing to Hell with loud and blustery cussing.<\/p>\n

Instead, we\u2019ll take the high road; we just want to know what it means. But before we get to that, let us pick up the news. Here\u2019s the latest, from\u00a0Bloomberg<\/em>:<\/p>\n

\u201cFederal Reserve officials pivoted toward a December interest-rate increase, betting that further job gains will lead to higher inflation over time and allow them to close an unprecedented era of near-zero borrowing costs. The Federal Open Market Committee dropped a reference to global risks and referred to its \u201cnext meeting\u201d on Dec. 15-16 as it discussed liftoff timing in a statement released Wednesday in Washington, preparing investors for the first rate rise since 2006.\u201d<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Time to Keep Your Cash in the Microwave? The Fed\u2019s Big Pivot NORMANDY, France \u2013 \u201cNow, I think I\u2019ve seen everything\u201d is an expression that \u2013 like \u201cthis is the end of history\u201d and \u201cI\u2019ll never leave you\u201d \u2013 usually turns out to be premature. But it is what we found ourselves saying yesterday. Not […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,6190,1931,1035,1034,124,303,305,1154,558,1389,771],"class_list":["post-13976","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-bill-bonner","tag-bond-yield","tag-cash","tag-cashless-society","tag-central-banks","tag-fed","tag-federal-reserve","tag-interest-rate-policy","tag-negative-interest-rates","tag-nirp","tag-sweden"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13976"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13976\/revisions"}],"predecessor-version":[{"id":13977,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13976\/revisions\/13977"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}