There is absolutely no need for a rate cut. Continue reading Does the US need a rate cut? No.
In these weeks we have read a lot about the so-called trade war. However, this is better described as a negotiation between the largest consumer and the largest supplier with important political and even moral ramifications. This is also a dispute between two economic models. Continue reading Much More Than A Trade War
The European Central Bank continues to disproportionately inflate the debt bubble of the Eurozone, while the economic slowdown of the main European economies worsens. What was designed as a tool for governments to buy time in order to carry out structural reforms and reduce imbalances, has become a dangerous incentive to perpetuate the excessive spending and increase debt under two very harmful and wrong excuses: That there is no problem as long as debt is cheap and that there’s no inflation. Continue reading The ECB’s Monetary Trap
The amount of bonds with a negative yield is higher than $10 trillion, according to Bloomberg. This means that by the end of 2019, almost 20% of the Global Government Bond Index will have negative rates.
Who buys these bonds and why?