Say what you want about this environment, how fucked up it is with western government saddled with insurmountable amounts of debt, fueled by QE. But what the western bankers have accomplished here is nothing short of a miracle.
By hook and crook, they’ve convinced the world is lend them money, bullshit economies with fucked up demographic trends, and PAY THEM for the pleasure of doing so.
Imagine taking out a mortgage and the bank paid you for lending you money. Sounds bizaare, no?
Theoretically, the more these countries borrow, the more they stand to make. The profits from these exploits can, in fact, be used to pay down the debt. Talk about fuckery on a largess scale.
Here is a chart of all the European 2yr bond yields. It truly is something to behold.
Food for thought, mostly all of those countries have better borrowing costs than the U.S., whosr 2 yr bond yields stand at 0.86%. With European QE in full retard mode, yields have been diving lower, pretty consistently. It’s very possible that 10yr yields will soon be negative too.
Alas, the wonders of being a central banker.
If you enjoy the content at iBankCoin, please follow us on Twitter
http://www.reuters.com/article/2015/11/11/us-ecb-policy-qe-idUSKCN0T01WA20151111
Getting even more interesting. How long before the fed starts buying Chicago municipal bonds?
Illinois has always been my pick for 1st default
Catalysts continue to sell off (Pt, Pd). That’s not indicative of industrial growth.
When Greek yeilds go negative we’ll be all set.
Germany 10 year went Negative. Just like all con games, the Central Banks can’t do it for ever, just ask Abe and his arrows.
Convinced the world to lend them money paying the privilege – yeah like the mafia?
Fucked up demographics trends – hilarious