Central Banks Have Sailed Us Where We Shouldn't Be [NEGATIVE RATES HERE TO STAY!!]

TCW ^ | July 12, 2016 | Tad Rivelle

[MarchonDC09122009]

Astute observation.
Immoral consciousless PTB Central bankers are cheap drug pushers of unsustainable low / no / negative interest rate debt funding.
Gov’ts & Real Estate bubble junkies are increasingly hooked on cheap money fixes to fund their spending habit kicks.
Unrealistic pusher-junkie dependencies always wind up Very badly for the user.

Gov’t bodies across the world tell their constituents it would be insane to Not go further into debt with bond rates ever going lower.
CB enticement has been right so far for borrowers (users).
When does a time time of reckoning occur?

RE: “What makes more sense to me is that lenders are out loaning money to any gov’t in sight making better and better offers for lower cost money —and governments are willing to pick up a good deal when they see it. The result should be low rates w/ more gov’t borrowing —this is what we got.

I say the low rates are causing the borrowing, not the other way around”

[i_robot73]

>
Why on earth would that be necessary? What I mean is that the vast majority of interest rates are set by folks like you and me that borrow and lend. We are the ‘free market’. OK so the Fed does overnight bank rates but their goal is controlling inflation —reason has nothing to do w/ that rate.
>

Your conflating what we have today with a ‘free market’??

Let’s no even get into the discussion of the govt having authority to ATTEMPT to ‘control inflation’ (as if that were entirely plausible to begin)....let alone cede any/all control over monetary policy to a private entity.

That’s like saying because people/biz are able to buy/sell between, we have a ‘free market’. Just disregard those niggling labor laws, unions, OSHA, FEMA, taxes, regs, mandates, etc.

Yep, we *have* a 2nd A....long as you don’t count the 20K+ ‘laws’, licensing, fees, stamp/taxes, etc.

[AllAmericanGirl44]

bkmk