Friday, March 18, 2016

Negative Interest Rates - SM Review-Preview 38

The evidence is piling up that we are entering a new recession or the next leg of the depression. One thing discussed by commentators is the problem of NIRP in the EU, and the possibility that it may come to America. One guy I read is a permabear but someone who often writes that so goes liquidity, so goes the market. Lee Adler looks at money flows and writes well.

This essay details how NIRP in the EU is boosting the US markets. He calls it NIRPitrage. if I read this essay, the US markets benefit from the EU folks sending their capital to America. Even if our rates are .25% or .50%, the gain is well above the negative rates of Europe. This means flows, and flows means capital gains.That is what matters to the masters of the universe now. They will not mess this up, so they will not go NIRP in America to keep this arbitrage situation alive.

This is not healthy. This is not a good sign. We live in interesting times.


Last week I wrote about how the Left turned their opposition to Gitmo into a religious crusade. It's also a peak into how the Left cannot neutrally view a odd situation. Non-uniformed combatants can b shot upon capture per the Geneva Convention. The US needed to hold them for intelligence gathering. Gitmo was an attempt at order to a strange, new situation. Weimerica Weekly was about heroin and New England.

This week I discuss Trump and what he has revealed about the state of the American political world. Weimerica Weekly will tackle technology and that already iconic Zuckerberg with the Oculus crowd picture.


Alexandros HoMegas said...

How about Japan? Their economy was the first to go the QE route and negative interests.

Big Bill said...

It truly is weird. Try telling people that non-uniformed combatants (aka the French Resistance, the Norwegian Resistance, and the Belgian Resistance) were war criminals guilty of violating the Geneva Conventions and watch their heads explode!