Yellen

[riders2010]

Could you imagine with all the debt that exists in households and farms what a rise and interest rates would do?
If it happenned people would realize that we have lost so much financial ground and are in such a mess individually and as countries.

[SASKFARMER3]

Ah we would make 15% or more on our savings.

[katoe]

If interest rates wernt so low there wouldnt be the amount of debt that there is.

[katoe]

If interest rates wernt so low there wouldnt be the amount of debt that there is.

[hobbyfrmr]

It seems to me that there must be piles of cash on some farms. We just had a 4-6 year run of profitable grain prices, farms are larger and more productive than ever. There is cash around.

[cottonpicken]

Agree on deutshe.

Before 08 no work had been done on the size of banking systems and host countries GDP ratio.

10% rates on a global economy of over 200 trillion credit market debt is 20t a year interest cost payment and global GDP is 70t but would go much lower.

Some are openly discuss negative rate in the five percent range.

We are so screwed

[boarderbloke]

cotton, errol, regarding the area of agriculture. Wouldn't negative interest rates of 2-3 percent, let alone 5 percent, cause a lot of inflation for land prices, equipment, buildings, seed, chem, fert, etc

[errolanderson]

boarder . . . Europe has negative interest and deflation continues to escalate. Government debt loads are past the point of no-return. This has been the failure of central banker policy as even excessive money printing has had little impact to kickstart inflation. Now the mess is a whole lot bigger.

A deflationary spiral is very difficult to spin out of as this rare economic event perpetuates on itself. Central bankers are becoming powerless (IMO).

The piper now has to be paid regards of central bank policy/manipulation.

[boarderbloke]

My thinking was that there would be a move of cash/low return, or negative return investments,,, into anything that has an intrinsic value.

So in agriculture, that might mean land, equipment, buildings etc.

I guess you're saying deflation will supersede those possible moves. When the dust settles after deflation, and even after the price of land, equipment and buildings have dropped, you my still have some value, than if your money was in some kind of paper investment?? Any thought to that?

[farmaholic]

Control, alt, delete. ...

Task manager. ...

Reset. ...

Default. ...

Reboot. ...

I have no ****in idea what I'm talking about. But it is probably reset time.

When the currency wars fail resort to the other style of conflict resloution.

How long can you continue to kick the can down the road?