Tuesday, February 16, 2016
The Trend Towards Negative Interest Rates
The Telegraph: Mapped: Negative central bank interest rates now herald new danger for the world
Sub-zero rates are becoming the "new abnormal" in a shaky world economy. With fresh panic hitting markets, are we finally hitting the limits of what monetary policy can achieve? Click on the countries to find out
The world's tentative experiment with negative interest rates got off to an unremarkable start.
Sweden's Riksbank - the world's oldest central bank - became the first major monetary authority to cross the rubicon and take its main policy rate into the red exactly a year ago to the month (see map above).
The Riksbank’s move followed the likes of Switzerland and Denmark, who had turned negative in a bid to stimulate flagging inflation and halt the punishing appreciation of their currencies.
Read more ....
Update: Bank of Japan launches negative rates, already dubbed a failure by markets (Reuters)
WNU Editor: I never thought that I would see negative interest rates. The world's economy is definitely entering a new era .... and I am definitely not optimistic on where all of this is heading.
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8 comments:
I'll state the obvious. They're out of money so they're trying to flush people's money out of the banks so they can get their hands on it by quasi-legal and (supposedly) politically palliative means. The next steps will be bail ins and the attempt to legalize "cashless" society. In essence it's attempts to save themselves and the politico/economic constructs they have erected. These people will go to any lengths up to and including the corruption and destruction of institutions of law and entire countries. But fear not every move will be described as for the "good' of everyone.
This is theft by the political class or oligarchy.
"This is theft by the political class or oligarchy."
That is correct.In essence what we are seeing is an attempt at the re-imposition of serfdom. The final steps will be the fixing in place of assets then the fixing in place of humans, i.e. tying one to the land and making movement illegal.
You are depressing my James, but I can't argue with what you are saying.
I like being middle class with the chance of being UMC or rich.
If you read a certain story, the computer said "Throw rocks". No residual radiation.
"You are depressing my James" don't be. No one, even silly people such as myself can foretell the future. Change also means opportunity, for you and for mankind, and change is coming one way or the other.
I concur James. Fortune favours the bold .... and there is going to be a lot of opportunity for those who know how to take advantage of it .... or at least in my case .... to keep what little I have from those who want it. :)
WNU,
" to keep what little I have from those who want it. :)" With a rotty and the GF, you have a head start.
"Fortune favours the bold"
I'll remember to tell my Grandkids that when I hear them and their friends plotting the revolution.
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