“If…”

“Low interest rates cause secular stagnation: they do not cure it.’ -CHARLES GAVE
‘Negative interest rates are the dumbest idea ever.’ -JEFF GUNDLACH, the new ‘King of Bonds’
‘Laugh but listen.’ -WINSTON CHURCHILL, addressing the British House of Commons, warning it once again of the rising threat posed by Nazi Germany, to derisive laughter.
SUMMARY
Overwhelming amounts of government debt are among the ‘rich’ world’s biggest threats. Unfortunately, the political will to cope with this – and the related problem of runaway entitlement spending – is nil. Radical monetary measures – such as quantitative easing (QE), plus zero- and negative-interest rate policies (ZIRP and NIRP) – are not stimulating growth. Instead, they are producing stagnation, ‘lowflation’, deflation, and currency wars. However, they have stopped the ticking of the debt bomb. They are also reversing the disadvantaging of younger generations at the expense of the older and wealthier; the latter are the big losers from the eradication of interest rates.

This post was published at Zero Hedge on 05/02/2016.