Commodity Trade Mantra

Posts Tagged ‘Free Money’

Negative Interest Rates: The Tax On Capital

Negative interest rates remove the positive “interest” paid to savers which is supposed to (partially) protect us from the rapacious “real inflation” running at 10+% per year. They go well beyond even this level of economic theft & criminality. Negative interest rates tax capital. How do you “stimulate” an economy by taxing capital? The inevitable result can only be the complete economic destruction.

Janet Yellen Is Wrong About Inflation

If consumer prices are rising faster than the authorities say, it means two important things: First, real GDP is not growing. Real GDP growth is adjusted for inflation. More inflation, less real growth. Second, the real cost of borrowing is much lower than we think. If inflation is higher, the real interest rate is lower.

The Emerging Market Volatility May Just Be The Beginning

The volatility in Emerging Markets which began in 2013 may just be beginning as much of the excess liquidity that went in search for yield may reverse course. During the next few months to few years, we would not be surprised to see even greater stress as more volatility returns to markets.

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