Monday, April 18, 2016

America Makes Its Living
From The Great Credit Bubble
"The problem for the Federal Reserve is how do they launch a new round of stimulus and still pretend the economy is in good shape .. Negative interest rates are a disaster. It's not working in Japan, it's not working in Europe, it's not going to work here.
Just because it doesn't work doesn't mean we're not going to do it, because everything we do doesn't work and we do it anyway.
It shows desperation, that you've had all these central bankers lowering interest rates and expecting it to revive the economy. And then when they get down to zero, rather than admit that it didn't work, because clearly if you go to zero and you still haven't achieved your objective, maybe it doesn't work. Instead of admitting that they were wrong, they're now going negative .. The United States, no matter how high inflation gets, we'll do our best to pretend it doesn't exist or rationalize it away because we have a lot more debt. America is broke, if you look at Europe and Japan even though there is some debt there, overall those are still creditor nations. The world still owes Europe money, the world still owes Japan money, but America owes more money than all of the other debtor nations combined .. We are broke, we're flat broke, and we're living off this credit bubble and we can't prick it. Other central banks may be able to raise their rates, but the Fed can't."
- Peter Schiff, Euro Pacific Capital
link here to the reference

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