Today’s RANT was inspired by the below commentary in Jim Willie’s new July newsletter:
France has joined Germany, Switzerland, and the U.S. in selling bonds with negative short-term yield. Thus, the sub-zero club admits a new, ashamed member. The Central banks are aiding and abetting nations in removing capital from productive sources, as government bonds soak up capital in true parasitic manner. When Japan carried negative yields, they were criticized as running a carnival sideshow in the credit markets. Nowadays, not only is the Japanese style ZIRP adopted, but negative bond yields are spreading like weeds in the West. Critics claiming gold pays no yield should pay close attention to the bond perversions.
However, the idea has been percolating for some time, forced back into my frontal lobe by last week’s shocking announcement that the Bank of Denmark has become the first-ever Central bank to set OFFICIAL interest rates below zero…
Central Banks Helpless As Denmark Goes NIRP, Cuts Deposit Rate To NEGATIVE 0.2%
Interest rates have been negative before, such as U.S. T-bills during last year’s Global Meltdown III. However, for the first time EVER, this terminal monetary disease has infected one- and two-year bonds, and spread to multiple countries, from perceived “safe havens” such as Switzerland…
Swiss 2Y Rates Plunge To -43bps As All Trust Is Lost
Finland Enters The NIRP Club As Germany Sells 2 Year Subzero Debt For The First Time
…to lesser credits, simply because they are “big”…
Dutch, French & Germans sell Treasury Notes at NEGATIVE interest rates
I mean, WHAT PLANET ARE WE ON, when one of the worst financial messes on Earth…
Reuters – European Bank Exposure
…which just last month, elected a near-COMMUNIST Parliament…
French Socialists win absolute Parliament majority
…and LUNATIC President…
France’s Wacky Definition of Competitiveness
…intent on running the nation as deep into the ground as possible…
France vows to spend its way out of recession, but such state-sponsored growth in the midst of a debt crisis is the height of gross irresponsibility
…can sell bonds at NEGATIVE INTEREST RATES, and have the MSM deem it a “sign of confidence”?…
France sells bonds at negative interest rate
And don’t forget the world’s most pathetic Central Bank, which after a decade of officially keeping interest rates at 0.1%, has decided to embrace NIRP as well…
BOJ Opens Door to Negative Rates by Ending Yield Floor: Economy
When I studied finance for four years in college – and three in the CFA program – the concept of “negative interest rates” never came up, as such lunacy was considered IMPOSSIBLE. Paying the bank to hold currency, particularly in a world of surging inflation and negative real rates? I mean seriously, how could anyone even consider such madness?
Japan has had zero interest rates for more than a decade – and the Fed nearly four years – but not once have policy makers opined of the potential for “NIRP,” or Negative Interest Rate Policy. Even the markets themselves never treaded below the 0% “Wall of Shame” – until NOW…
Money Managers Brace for a ‘Negative’ Era
I can’t comprehend it, in any, way, shape, or form. To me, lowering OFFICIAL rates below zero is the equivalent of murdering one’s mother, the supreme act of malice and failure. I’m not going to write a treatise on the incredibly flawed logic behind it; but suffice to say, it essentially equates to the COMPLETE BREAKDOWN of the financial system – the final, blaring signal that the END GAME is nigh.
Since Global Meltdown I in late 2008, Central banks have FAILED to revive economic activity with “ZIRP” (plus trillions of PRINTED MONEY BAILOUTS). Actually, it has grown vastly worse, to the point that nearly ALL nations are in recession and ALL major banks insolvent. This is why they won’t lend at ANY interest rates, and why the public can no longer afford to borrow, EVEN AT 0%. Now, with negative rates, depositors must PAY to keep WORTHLESS fiat currency in an INSOLVENT – and in many cases, BANKRUPT – financial institution, covered by INSOLVENT “insurance funds” like FDIC and SIPC, and managed by CRIMINALS like Jamie Dimon, Lloyd Blankfein, and John Corzine.
Meanwhile, my ears are still ringing from a decade of being told gold is a “barbarous relic” that pays no interest. Perhaps, but unlike dollars, Euros, and Yen, gold’s PURCHASING POWER has maintained for five millennia, and risen sharply in the past decade of PAPER asset collapse…
The reason I have SURVIVED and THRIVED is not because I am a genius – but rather, a realist. I have been predicting FINANCIAL ARMAGEDDON since early 2000, and not once have my macro-forecasts been incorrect. And they won’t be in the future either, as I am willing to see what others refuse to see – the mathematically certain end of the GLOBAL, fiat-based monetary system.
If you are reading this newsletter you are similarly inclined, so I IMPLORE you to consider the importance of today’s RANT – and subsequently, to…
PROTECT YOURSELF, and do it NOW!
Call Miles Franklin at 800-822-8080, and talk to one of our brokers. Through industry-leading customer service and competitive pricing, we aim to EARN your business.
THAT was Great! I mean you cut to the chase didn’t you. A Bankrupt bank paying you back less than you paid them…better yet, bankrupt COUNTRIES paying back less than you gave them and SUCCEEDING in doing it ( as long as they or someone buys their dung!) and SUCCEEDING in doing it…REALLY!?!?!?
And then CNBC (BS,BS,BS,BS!!!!) et.al. saying this is a sign of financial health…Calling George Orwell. Calling George Orwell…wait, wait, wait….calling Alice tumbling down the rabbit hole. Calling Alice tumbling down the GD rabbit hole!!!! I need you guys HERE …NOW!!!
Where was I? Well done Andy. No reliance on Tyler, just straight ‘Can anyone believe this crap that passes as ‘Normal'(new Normal)…AND if this is ‘Normal’ please Alice- what’s Ab-Normal? Really what is not ‘normal’ if this is NORMAL???
Oh Yea, and you get to cook-up that fiat (Skag!) crap in the back yard still and tell me it’s “Good as Gold’ …Seriously?!? And then tell me/us – “You’re crazy. You need a propeller for that Tin Foil hat you’re sportin’ boy”
My God it’s LONELY having this/our point of view…it’s …A L O N E….98% alone… But I’m in…IN. Nearly alone, scared to death, but damn, I’m in.
Well done Andy.
Yes, but 98% alone was 99% alone just a few short years ago.
And don’t be surprised when it plummets to 0% alone in the coming years!