Silver as an investment

Category Archives: NIRP

The Flattening US “Yield Curve”? NIRP Refugees Did it / by Wolf Richter / Dec 14, 2017  Sez Fitch & Yellen US Treasury securities are doing something that is worrying a lot of folks, including Fed Chair Janet Yellen: While short-term yields are rising in line with the Fed’s hikes of its target range for the federal funds rate, longer-term yield have done the opposite: they’ve been […]

The Process Through Which the First Major Central Bank Goes Bust Has Begun / By Graham Summers / 11 December 2017 In the aftermath of the Great Financial Crisis, Central Banks began cornering the sovereign bond market via Zero or even Negative interest rates and Quantitative Easing (QE) programs. The goal here was to reflate the financial system by pushing the “risk free rate” to extraordinary lows. […]

Policy From Behind / by Jeffrey P. Snider / July 31, 2017 This is a syndicated repost courtesy of Alhambra Investments. To view original, click here. Reposted with permission. When the Mario Draghi as head of the ECB first introduced negative rates in early June 2014, his reasoning was very clear. As he said in the opening of his statement imposing […]

THE WAR ON CASH AND THEN ON GOLD… / /December 18, 2016 The global financial system continues to groan under the strain of the accumulated weight of trillions of dollars worth of debt and derivatives, which have built up to even more fantastic levels than those that precipitated the near collapse in 2008, thanks to the policy of solving liquidity problems near-term […]

‘Subtle Forward Guidance’ – Trying To Fool The Marginal Oil Investor Everything’s Under Control / by Eugen von Bohm-Bawerk via / Oct 19, 2016 3:15 PM In the years following the 2008 crash and today, the use of forward guidance from central banking policy makers has become increasingly important. What this nonsense ultimately has translated into is a ridiculous track record in posting upbeat assessments on the economic environment, aimed […]

NIRP Has Failed: European Savings Rate Hits 5 Year High / by Tyler Durden / Oct 13, 2016 2:48 PM One year ago, when it was still widely accepted conventional wisdom that NIRP would “work” to draw out money from savers who are loathe to collect nothing (or in some cases negative interest) from keeping their deposits at the bank, and would proceed to spend their savings, […]

A ¥9 Trillion Hole Emerges Inside The BOJ’s Balance Sheet: “It’s A Pretty Dangerous Situation” / by Tyler Durden / Sep 1, 2016 11:58 AM When it comes to accounting conventions, the Fed and the BOJ differ in one major way: unlike the Federal Reserve, the BOJ counts its bond holdings at the purchase price, minus amortization costs. In the old days before NIRP this wasn’t an issue because with positive yields, […]

Stanley Fischer’s Bizarre Justification For Negative Rates / by Tyler Durden / Aug 30, 2016 11:38 AM With over $13 trillion in global bond yields trading in negative territory as a result of central banks’ negative rates policies, leading bank profits to tumble and forcing savers in both Japan and now Germany to pull their money out banks and put into safe deposit boxes […]

The Reckoning—–The Central Bankers Really Don’t Know What They Are Doing / by Jeffrey P. Snider via ALHAMBRA PARTNERS / August 25, 2016 As I have written many, many times, the “unexpected” events of January and February were a dramatic wake-up call for central banks. Last August’s global liquidation they could at least try to ignore because it could possibly fit within the paradigm of “transitory”, a one-off aberration that […]

NIRP vs Gold Part 8 – The Most Destructive Monetary Policy of All Time / by Andrew Hoffman / Aug 24, 2016 The fact that this is my eighth “NIRP vs. Gold” article, spanning more than three years time, is all the proof you need that this unprecedentedly deformative policy is here to stay – in Peter Schiff’s words, a “roach motel” where once a Central bank checks in, it can […]