Here’s An Update On Negative Yielding Government Bonds

Just because everything appears to alright, I figured it was time to douse you with a little reality–if I might be so bold. Let’s have a look at the perversion of finance as we know it, the negative yielding government bond. Due to the massive and unsustainable levels of debt, western governments, and the mad scientists in Japan, figured out a way to monetize their own debt. To do this, they started to print money, for the explicit purposes of buying their own debt. The result has been a dramatic one. Central banks now own their own debt, derisking the possibility of a foreign entity fucking with yields by selling their bonds. And, to boot, they’ve managed to buy so much of the shit, yields have not only gone to zero, but in many cases negative.

In other words, governments are now making money by borrowing money. The more they borrow, the more they make.

What can go wrong?

Let’s have a look around the globe, children, to see what those bonds are up to.

Austria- negative yields up to 7 yr duration
Belgium- negative yields up to 7 yr duration
Bulgaria- negative yields on 1 mo duration, in fucking gypsy land.
Denmark- negative yields up to 5 yr duration
Finland- negative yields up to 6 yr duration
France- negative yields up to 6 yr duration
Germany- negative yields up to 8 yr duration
Ireland- negative yields up to 5 yr duration
Italy- negative yields up to 3 yr duration
Japan- negative yields up to 10 yr duration
Netherlands- negative yields up to 7 yr duration
Slovakia- negative yields up to 4 yr duration (not a typo)
Spain- negative yields up to 2 yr duration
Sweden- negative yields up to 5 yr duration
Switzerland- negative yields up to 15 yr duration

Negative yielding sovereign debt now tops $7 trillion, or 30% of all debt, globally.