SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: CynicalTruth who wrote (5143)3/17/2008 2:17:15 PM
From: stan_hughes  Read Replies (2) | Respond to of 71477
 
"if they would just send those rates negative"

Be careful what you wish for, or you will surely get it

ZIRP is a real possibility for the US -- it's even advocated by some groups, e.g. PIMCO, although they also have their own agenda to pursue there

Besides, current negative real interest rates (i.e. net of inflation losses) actually means that you are already paying the government by holding their paper -- I figure it's something around 5% right now, maybe more

And as long as everyone (including foreigners) keeps lending the government money at these negative real rates, they're probably going to stay negative until that stops