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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (150506)	9/3/2019 9:03:48 AM
From: TobagoJack	1 Recommendation Recommended By dvdw© Read Replies (1) \| Respond to of 217792

as all debts go negative-yielding, in a mathematical sense the debts then transform from ... well ... debt ... into an asset when so, the more the better, because asset is good, and negative debt is also good but not everyone can issue negative-yielding debt, and in truth most cannot at some later-still juncture, I fear, because I suspect I know, the folks who netted positive cash from the negative-yielding debt issuance party would have every incentive in the world to pulverise the debt into nothing by way of engineering an 18% positive-interest rate environment, and deposit their ill-obtained cash to earn an easy 18%, and ride out the zero-state monetary-reset a lot of folks shall get burned crispy at that moment, the monetary system shall likely need a confidence boost, but maybe only by way of fintech-enabled digitised gold in such a world, gold itself is worthless and possibly a danger, unless digital, but gold mine would be worth a lot more must think more stocks shall rise, especially dividend-yielding stocks, particularly if gold-backed blog.evergreengavekal.com <<Negative Interest for All Is it conceivable that in the euro area consumer-, home construction-, and corporate loans will soon be offered at a negative interest rate? Yes, it is possible, indeed. To illustrate how this could occur, we assume that euro commercial banks get credit from the ECB for minus 2% per annum: Banks borrow 100 euros, and after one year, they pay 98 euros back. So the banks easily reap a profit of 2 euros. However, the ECB will let the banks only borrow at negative interest rates under the condition that they lend the money. To stick with our example: A bank borrows 100 euro for one year at minus 2% per year from the ECB. It lends the money to consumers at, say, minus 1% (giving them €100 and getting €99 back after one year). Overall, the bank makes a profit of 1 euro: It earns 2 euros by borrowing from the ECB while losing 1 euro in the lending business. A twisted world, and it does not bode well for the prosperity of the economies.>>