US, Euro zone, Japan are all loosening monetary policy and/or printing money outright, with Japanese banks unwilling to accept money money even at zero rate, and borrowers unwilling to borrow at 0+175 basis points. As the big three rev up the sputtering engine, the smaller economies are busy also papering over the mistakes and inadequacies of the past.
At some depositor interest rate, and at some inflation index level, paper becomes totally toxic, and whatever may be said of policies around the globe, we are certainly trending there fast, at 25 basis points per month downward velocity.
As old-timers say at times, everything has a price.
Chugs, Jay |
