IMF’s Lagarde Says Negative Rates Have Helped Global Economy
"The world economy would be worse off without negative interest rates, according to International Monetary Fund Managing Director Christine Lagarde."
DYI Comment:
What Total Bull Crap!
Negative interest rates are designed to bail out the banks. Commercial banks are there to purchase deficit spending from their respective countries. There is nothing altruistic between the European Central Bank and the governments of the EU. They are there to scratch each other backs by providing continuous interest payments for the banks and debt created out of thin air to purchase the on going debt. Eventually relieving the debt burden by debauching(inflating) the EU.
This will happen here in the U.S.during the 2020's as Federal liabilities come home in the name of Social Security and Medicare. The roaring twenties will be known for high taxes, high inflation, and a labor shortage(Boomers retiring). Great for employment terrible for one's savings. By knowing the asset category that is dear and which ones that are cheap is this blogs entire purpose. Currently today stocks and bonds are horribly overvalued yet oil/gas/service and precious mining companies have been made cheap and are on the give - a - way table respectfully.
Stock Market Crash: This Is What the Federal Reserve Won’t Tell You
What’s been lifting the S&P 500 to record levels over the past eight years? According to economic analysis, the Federal Reserve was responsible for more than 93% of the stock market’s movement. On top of that, the Fed was behind 100% of the entire market’s growth in the first half of 2013.
Former Federal Reserve chairman Ben Bernanke became Wall Street’s sugar daddy when he initiated a trillion-dollar bond-buying scheme in an effort to kickstart the flagging U.S. economy. Between November 2008 and October 2014, the Federal Reserve printed off roughly $3.5 trillion and artificially lowered interest rates to zero through three rounds of quantitative easing.
Not so coincidently, over the same time period, the S&P 500 doubled in value. Quantitative easing took income out of fixed-income investments like Treasuries and bonds and forced those looking to strengthen their depleted retirement portfolio to put all of their money into the stock market.
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