Alasdair Macleod: All You Need To Know About Negative Interest Rates
On Thursday, the European Central Bank (ECB) took the historically unprecedented step of lowering certain of its interest rates below 0%. In a report to our premium subscribers immediately following the announcement, Chris likened the move to the policy equivalent of dropping a neutron bomb.
In the days following, despite the ECB attempting to clarify its stance further, many questions still linger; most notably: What exactly will the implications of this negative interest rate (NIRP) policy be?
We’ve asked our European correspondent, Alasdair Macleod, to lay things out in black as white as much as is possible. In this detailed podcast with Chris, he explains exactly what steps the ECB is undertaking, what the most probable ramifications will be, and where the highest degrees of risk now lie:
Alastair Macleod also on today’s Max Keiser report! 12 mins into show. He – Macleod reminds us that with the ECB going negative (where e.g. a saver pays the bank $10 for every $1000 saved) gold in fact pays a better ‘rate of interest’. lol.
http://www.maxkeiser.com/#fBWDT5tmaDLYEy7J.99
The fact that the governments around world are keeping monetary policy extremely loose makes me believe that all is not well and inflation is in the pipe. All the other is just talk. They can only convince me if they return to normal first. Too much craps are pumped out by these elites.
Lawrence………….kwn………has a nice article on inflation, ….60 years worth.
Lawrence, it is deflation that is in the pipe. Just ask Draghi. It’s plain to see that a zillion dollars worth of stimulus attempted so far is barely keeping deflation at bay. My advice to anyone who would try to make sense of what’s happening in the financial/economic world is to start by purging the word ‘inflation” from his vocabulary, and putting it completely out of mind.
Rick,
How do you put inflation out of mind when you have to buy groceries ,gas and commodities on a regular basis. I have never seen wild caught salmon at $25.00 PER POUND. Florida shrimp (normally $5.95 at the dock) now $15.00 a pound. Vegetables, eggs, laundry detergent all up over 10% in the last three months. Utility bills up over 3% since January. what do you call it if not inflation? Regards!!
Rick does not buy groceries ,utilities, phone, gasoline, college tuition …..there is inflation……..rents in our location have gone up…..the auto repair man still want $70 per hour, auto tires are still up,,,……license plates are still up and going higher, my real estate taxes just went up………….so, what is INFLATION…….
I pretty much have the same questions Gator!
Andy Hoffman……is talking INFLATION…. with Gregg at USAWATCHDOG today……..
If deflation is in the pipe, it means that general price level is going down. At the same time central banks print large amount of money and results in a glut of money without increase in production. WE CAN BUY MORE. Then we arrive at a conclusion that we can print to prosperity. We get rich without extra work. I really love to get it. Why do we work if we can get there without work?
Everything which does not make sense is just an illusion, working to seperate the wealth from its owner.
Agree completely, Lawrence!
You make a good point about the lack of truth in that argument. I too would really love to get it!
ALL I CAN SEE IS “INFLATION”…& a lot of it is stealth inflation…ie..less contents in packets of food…smaller tins of food…poor quality of both fresh & processed foods ..higher energy costs, I could go on…so don’t anyone try telling me there is no inflation.
I do agree with you Mr. Irish.
ditto…………Irish…….
JAMES BULLARD……….SAYS………….”inflation moving higher”………(Sinclair today),
So, RICK what do you think?
of course who trust the FED…………..
GOLD moving higher…………..
It depend how you define the inflation/deflation. It appears that deflation definition is changed to:
Deflation denotes a scenario where the price rise is lower than 2%, excluding the areas of food, tuition, service, insurance, assest and any other areas with a price .
After search really hard for items fitting this definition, I finally find one – wage.
the only problem…………with changing the rules………is it must apply to nature, and not a figment of one’s imagination…………let alone, a demented bunch of morons, running a crazy farm…….
CHECK OUT……….usawatchdog……….Andy Hoffman is talking about INFLATION, with Greg………..
it is INFLATION ….for the stuff we need……… deflation for the stuff we do not need.
Is it true that they all live in Florida?
Don’t forget energy!
Al………I am back in Indy………3 months of eating fish is enough, plus the fresh oranges are out of season.
Genghis Khan’s old stamping ground is being moulded into an economic bloc that will become larger than the North American Free Trade Agreement and the EU together, and potentially more cohesive. It does not have the heavy baggage of the welfare state and its citizens are savers. The confidence China feels in this strategy is reflected in territorial disputes with her non-SCO neighbours. The sub-text is she is telling Vietnam, the Philippines and Indonesia to ditch the foreign influence of America and join the SCO.
Already governments all over Asia are beginning to recognise this pull towards a combined future. As soon as we leave Afghanistan she is likely to be fast-tracked into the SCO. Turkey is turning her back on joining the EU and is moving towards SCO membership. And coincidentally financial markets from Moscow to Dubai and perhaps even Bangkok are all gearing up to be gold-dealing centres.
The signs are as clear as daylight. With a financial system that has the structural stability of a house of cards and the prospect of eventual bankruptcy from welfare commitments, trade with the US and EU is not the future priority for China and Russia. And without the west’s Keynesian and monetary baggage to carry, they have retained in large measure an understanding of the importance of gold as sound money.
This is why so much of the world’s gold has ended up in Asia, including the Middle East. Gold is destined to be an integral part of Asia’s financial system, leaving the west short and out in the cold. And we know from the tonnage flowing to Asia that much of this gold has come from western central bank vaults.
It amounts to an Asian gold strategy that excludes the west, and by supressing the gold price through sales and leasing of monetary gold western central banks have unwittingly enabled China’s carefully thought-out plans. How and when will western central banks break the news to us all, that the bulk of the gold reserves entrusted to them are now in Asian hands, and they have been secretly complicit since the 1970s in setting up a whole continent with what probably amounts to the largest wealth transfer in history?
As this thread started with an Alasdair Macleod interview I figured Id post a piece of an Alasdair article.
Thanks bb
No matter what anyone thinks on here Bird is my friend.
Anyone who quotes scripture and he does have lots of
good attributes and just remember. …..
NO ONE IS PERFECT ….
Like I have always said some use this forum to demoralize others
on a regular basis. Won’t mention the name. You know who he is.
Its non stop.
In the case with Bird to have a bad disagreement here once and awhile
is not out of the norm. It happens.
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