Falling Interest Rates / Steel Prices

[errolanderson]

The latest cut in rates has now come from Norway's central bank dropping to a negative 1/2% over the past 24 hours.

Odds are getting higher that the Bank of Canada will be forced to cut their current key lending rate of 1% later this year (IMO) as Canada's recession deepens.

To me, China's recession may have an immediate impact on spot steel prices globally. Copper, nickel, iron ore are already in steep decline which is a clear indicator of the current health of global economies.

[bucket]

Watch rebar prices. That's the indicator if things are getting better.

[rockpile]

could someone please explain negative interest rates to me? In my mind that is an oxymoron.

[farmaholic]

The step after negative interest is divorce. Oh, you meant financially, sorry.

[cottonpicken]

The last desperate attempt to save a flawed model,they don't call it the dismal science for nothing.

Anyone who has taken post secondary economics lives in the realm of Keynes,the other model is austrian.

Oddly/or not farmers seem to me to have a much more intuitive insight in slow natural growth and progression and no such thing as a free lunch.

[Hopperbin]

Rockload I was going to ask the same questiom. In my mind negative interest os impossible able

[cottonpicken]

What did the interest pay on all them war bonds issued in the past?

and what is that same ounce of gold held by a confederate soldier whizzling dixie arming the walls of Charleston worth?

Does the gold chart look different in yen/candos/rubbles?

Or does it cost you 1500 hundred now?

[Hopperbin]

Mellon picker. Your saying if my money is worth less. After my 4 percent interest for borrowing it is negatibe.

[Hopperbin]

Negative interest means borrow and gain

[errolanderson]

This is the failure of Keynes economics and mis-steps from central bankers . . . .

The ECB is now printing boatloads of money in a desperate effort to kickstart inflation. The Swiss Central Bank has tucked-tail and bailed away from the Swiss Franc pegged to the Euro. This has had devastating consequences primarily from 'bad' central bank policy. To me, the Eurozone is now at heightened risk of break-up (within 1 to 2 years)

Commodity price fallout led by the metals is a key indicator of the strain on global economies right now.
ECB money printing may give a temporary boost to European equities . . . but then what?