Monday, April 18, 2016

Negative Interest Rates Are Making
The World Economy Impotent
"Negative interest rates are fueling deflation. People have less income to spend so how is this beneficial? The Fed always needed 2% inflation. The father of negative interest rates is Larry Summers. He teaches or has been in government. He is not a trader and is clueless about how markets function. I warned that this idea of negative interest rates was very dangerous. Yes, I have warned that the central banks are trapped. Their QE policies have totally failed. They have lost all ability to manage the economy even in theory. They have bought the bonds and are unable to ever sell them. If they reverse their policy, government debt explodes, if the refuse to reverse this policy of negative interest rates they will see a massive capital flight from government to the private sector once the MAJORITY realize they are incapable of any control. They played a very dangerous game and have lost .. We have government addicted to borrowing and if rates rise, then will go bust. We have debt which is unsustainable the further you move away from the United States which is the core economy. Unfunded pensions destroyed the Roman Empire. We are collapsing in the very same manner and for the very same reason."
- Martin Armstrong
link here to the commentary

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