{"id":48109,"date":"2019-08-29T16:43:18","date_gmt":"2019-08-29T21:43:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48109"},"modified":"2019-08-29T18:39:03","modified_gmt":"2019-08-29T23:39:03","slug":"negative-interest-rates-are-extremely-toxic","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48109","title":{"rendered":"Negative Interest Rates Are Extremely Toxic"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/themarket.ch\/interview\/negative-interest-rates-are-extremely-toxic-ld.789\">Negative Interest Rates Are Extremely Toxic<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The global economy is on the brink: Europe is headed for recession, Japan as well and China\u2019s growth rate is the slowest in almost thirty years. Only the economy in the United States seems to hold up. But for how long?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Mr. Bianco, the summer is basically over and we are heading into the final stretch of the year. What\u2019s ahead for the financial markets in the coming months?<\/strong><br>There are two issues at play: First, the trade and currency wars where the situation reminds me somewhat of \u00abThis Is Spinal Tap\u00bb. It\u2019s a cult satire movie from the eighties about a rock band and they coined the phrase \u00abup to eleven\u00bb because that\u2019s how high their amplifier went. So the expression \u00abturning it up to eleven\u00bb refers to the act of taking something to an extreme. I\u2019m saying this because I think Trump is \u201cgoing to eleven\u201d on trade: He\u2019s going to turn it up so high that there is going to have to be a deal. That\u2019s the way he wants to do this. He will just make it intolerable so everybody has to sit down and cut a deal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s the other issue?<\/strong><br>The inverted yield curve. The three-month\/ten-year curve has been inverted since May and this is the market\u2019s way of saying the Federal Funds Rate is too high and must come down. It is interesting how hard everyone is standing on their head to dismiss the yield curve and tell me why it\u2019s different this time. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/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":[15750,281,303,20708,18451,534,558],"class_list":["post-48109","post","type-post","status-publish","format-standard","hentry","category-economics","tag-christoph-gisiger","tag-europe","tag-fed","tag-inverted-yield-curve","tag-jim-bianco","tag-monetary-policy","tag-negative-interest-rates"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48109","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=48109"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48109\/revisions"}],"predecessor-version":[{"id":48111,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48109\/revisions\/48111"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}