15 replies to this topic

[SemiBizz]

No Wonder there is a perpetual bid under TLT

 

JANET YELLEN: I won't completely rule out negative interest rates

[Iblayz]

Central Bankers have gone insane. They (as a group) now represent the biggest threat to all economies. The whole world is in a mess because of stupid and uncontrolled government spending and stupid government legacy commitments (as in the promise of massive pension commitments to employees that are unfunded) and these bongo-heads just keep doing stupid stuff that WILL ALWAYS blow a bubble somewhere.........and, as we know, these bubbles will eventually pop. Add to that the fact that governments NEVER pay themselves out of debt and well..........the day of reckoning will affect us all. There is no way to avoid it.

[AChartist]

The look of RUT daily cycles is up for 6 days I wouldn't be surprised if that is extend to end of month,

 

then down moderately in June then up well. I am tending to stay long for it but may need a hedge in early June.

 

The next shakedown in June may be when they launch neg rates because it looks moderately down in daily

 

basis but a worse risk down in weekly basis, it might be ugly prompting central bank re-electioneering insanity in mid June

 

to be on the way up for Jul 4.

 

I believe US has about the most negative real rates already at 1.5% 5 year to 7%-9% annual chapwood index inflation.

[SemiBizz]

TLT SMOKING HIGHER...

[NAV]

Buy GOLD and Silver. Central bankers are at a point of no return. They will take all desperate measures before we collapse. But it could all take a decade or more of insanity. The money printing is going to go parabolic, when the next crises hits. Gold and Silver are no-brainer beneficiaries of this coming insanity !

[SemiBizz]

Retail Sales are up... but wait, how about all those retailers posting crappy earnings and outlook?

 

We're supposed to believe the government, and think the companies are lying to us?

 

 

[gm_general]

Look at it this way - examine the charts below, rates at the low end motivate the rates we pay, which will be higher than that. With $63T total debt and average rate of 3 and change percent interest, to pay the yearly interest takes something like 15% of the whole GDP. So rates paid for debt have to go lower as debt goes up, so that the total interest costs do not exceed about 20% of GDP - above this and we are in recession. So rates at the low end HAVE to go negative, so that the average rate paid on debt does not cause that recession thing, permanently.

 

Now you may realize this is just a temporary solution, as what do you do when regular rates cannot go lower, without also going negative? I did, anyway. That is truly end game.

[SemiBizz]

So at the other end of the NIRP is the stock market...

We're supposed to think it might be safer and smarter to have our money in equities...

[redfoliage2]

Everything will be higher including stocks and milk.............

[edamat]

Hey, does it mean:

If BofA is offering loans at -1%, and I will borrow $1.01 trillion in cash, a year later I give BofA $1 trillion back, and keep the remaining $10 billion?