Negative Yielding Bonds Surpass $17 Trillion

If you’ve ever wondered why our markets are flourishing in the US, all you need to do is look at Europe.

Why?

The vast majority of the $17 Trillion of bonds with negative interest rates are in Europe.  This means that investors are paying money for the central banks to hold their money.

That’s like Guido and Vinnie telling you there’s been a lot of fires in your neighborhood lately.  And, of course, they’ll gladly see that your business is safe from being burned for a modest fee.

C’MON, MAN!

$17 Trillion in negative yields is result of a failed policy to stimulate the economy by lowering interest rates.

After ten years of failure, you’d think they might figure out that it’s not working.  However, the European Central Banks (ECB) new chief, Christine Lagarde, plans on continuing this devastating policy.

Lagarde is a lawyer with no background in economics who recently addressed Europe’s failed policy by saying:

“We should be happier to have a job than to have our savings protected … I think that it is in this spirit that monetary policy has been decided by my predecessors and I think they made quite a beneficial choice.”

Seriously?  You should be happy that your savings is NOT protected?

I guess Lagarde has forgotten that savings are essential to healthy economies.

Her predecessor, Mario Draghi – former Goldman Sachs “Club” member – has single handedly nailed Europe’s coffin shut.

Media buffoons in Europe have credited Draghi with saving the EURO.

The truth is his negative rate policy has sealed the EURO’s death warrant.

This will only get worse as the banks in Europe fail and spread like wildfire around the globe.

Read “The Chaos of 2020, Part 2” (HERE).

Learn to live with less

Lagarde’s message: