Negative Rates

[errolanderson]

One (1) month and three (3) month U.S. treasury yields have gone negative this morning . . . the 1st time in history.

[Rareearth]

Govt should be more broad in the aid for people and business vs picking those to who can live and other that can die.

For example :
-some one earlier pointed out gst that’s perfect - everyone fair
-Interest rates, drop them so we can compete with other nations (USA .25, Europe -.75, etc)Canada prime +.75
-Drop CDN dollar


Carbon tax is disproportionately crippling to many industrial, and export commodity sectors that creat jobs and economic activity.

Right now it is all about vote buying and the next election, buying individual votes at what true cost to the country and economy?

[Austrian Economics]

Govt should be more broad in the aid for people and business vs picking those to who can live and other that can die.

For example :
-some one earlier pointed out gst that’s perfect - everyone fair
-Interest rates, drop them so we can compete with other nations (USA .25, Europe -.75, etc)Canada prime +.75
-Drop CDN dollar


Carbon tax is disproportionately crippling to many industrial, and export commodity sectors that creat jobs and economic activity.

Right now it is all about vote buying and the next election, buying individual votes at what true cost to the country and economy?

Every drop in the rate of interest below what a free credit market would tolerate (and no free credit market would anywhere near zero) is destroying capital. We are literally consuming the seed corn. Once
we go full bore below zero that consumption will accelerate dramatically. It's no different than a farm that burned all the seed corn, or handed it all out to the employees to be eaten. You would have nothing to plant next year's crop.

[Austrian Economics]

One (1) month and three (3) month U.S. treasury yields have gone negative this morning . . . the 1st time in history.

Your quip about the Fed being both arsonist and fireman is very appropriate. Given the constraints that fiat currencies impose, (as debt balloons creditors need relief via perpetually falling rates) the Fed has no choice but to follow along and let the overnight rate go negative too. They may boast about being able to buck that trend, but in reality they are powerless to stop it.

[Rareearth]

If interest rates do go negative?

What will happen,
-Gov prints more money, ( they should be spending it on infrastructure, building and stimulating economy vs feeding the entitlement)
- This will fuel inflation
- Govt will increase taxation
- trouble for exporters as every county imposes tariffs to support their own economy
Etc

[Ache4Acres]

All of the above rare earth. You are bang on. They have been doing those things for 20 years..why stop now??

[ajl]

All of the above rare earth. You are bang on. They have been doing those things for 20 years..why stop now??

Canuckistan has been doing QE since the late 1960's. This is how PET bought elections in the 70's by bribing folks with freshly printed money. This combined with the oil shock of 1974 resulted in hyper inflation in the early 80's and central bankers had to stop printing money for a while. We know what happened next. Since the late 90's and especially after 2008 the printing presses have been going non stop. If they stop now, look out below. This is how a third world nation like canuckistan can look like it is first world.