Fed’s Fischer gave a hugely ridiculous speech today about the virtues of negative rates. He had the balls to praise Denmark for raising rates from -0.75% to -0.60%. Overall, he had nothing but good things to say about negative rates.
I talked about this yesterday: the negative rate environment is forming a bubble–one that is encouraged by more government borrowing. With over $5.5 trillion in government debt now trading with negative rates and the debt burden of sovereign governments on the rise, the sucker who will pay for all of this is the person reading this blog.
Because Visa and Mastercard are taking over the world, coupled with the stigma of cash, very soon–in your lifetime–you will pay your bank to house your money. As an investor in government bonds, you will pay your government to borrow your money–for the safety of it all.
No one thought a negative rate environment could last. Analysts said people would take their money out of banks and put it under their mattresses. Well, over in Europe, where this grande experiment was born, that is not happening.
Some people believe the Fed can eventually go negative, providing economic conditions don’t improve.
Could rates go -2, -5, or even -10%?
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1)
Bears said rate cut acceleration & dependency, was, a bubble (would be) years ago
2)
Populations are being robbed, letting it happen, and contributing to their own impending crashes while pretending and assuming everything is normal, , , all simultaneously!
you will pay your bank to house your money.
not true…..
Go long paper ahead of the bull market in treasure maps
If anyone wants to pay someone to store their money, i’m your guy. I’ve got a 33/6 insurance policy. That is 6 shells at .30 caliber.