Thursday, July 12, 2012

The Sub-Zero Club 
Admits a New Member - France
Dollar Collapse's John Rubino highlights France as joining Germany, Switzerland & the U.S. as selling bonds with negative yields, meaning investors are paying those countries to safeguard their capital .. With these bonds now actually costing money to own, "gold’s zero yield looks relatively good" .. but Rubino points out the strong deflationary pressures in the world are likely the reason for these negative interest rates .. sees central banks as even more likely to print more & more money to counteract this trend .. "The idea of paying someone to hold our money harkens back to the origins of banking, when goldsmiths offered to warehouse customer coins and bullion for a fee. Could this be the beginning of the end of fractional reserve banking?"

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