We are entering what is commonly termed the ‘batshit insane’ phase in European monetary policy, negative interest rates, though there is plenty more to come. This means that the bank charges you to hold cash held on deposit, encouraging you to spend instead of saving, keeping the Ponzi schemes going and to fight off deflation. If this is the case, it’s the perfect reason to buy gold and silver.
Looking at bond rates within ECB countries over the past 200 years or so, we are cruising through batshitinsaneville but no one really cares or understands, expect puppies and balloons when this all comes to fruition.
Courtesy of The Guardian:
The European Central Bank unveiled an unprecedented package of measures on Thursday in a dramatic attempt to inject life into the eurozone’s flagging economy and ward off a damaging deflationary spiral.
In a historic first for the troubled region, the ECB boss, Mario Draghi, and his colleagues on the governing council cut the deposit rate for the region’s commercial banks to -0.1% from zero. Continue reading