Former Federal Reserve Chairman Alan Greenspan said it’s not a matter of “if” but “when” the U.S. will experience negative interest rates. “You’re seeing it pretty much throughout the world. It’s only a matter of time before it’s more in the United States,” Greenspan said.
While speaking with CNBC’s “Squawk on the Street ” on Wednesday, Greenspan added that he thinks investors should watch the 30-year Treasury yield. The 30-year U.S. rate traded at 1.978% and it reached an all-time low last week. Currently, there are more than $16 trillion in negative-yielding debt instruments around the world as central banks try to ease monetary conditions to sustain the global economy. The 10-year sovereign bonds in Belgium, Germany, France, and Japan (among others) are trading with a negative rate.
Negative interest rates seem like a winning solution, however, it’s not something we should wish for in the U.S. It’ll devalue any savings you have, meaning you’ll be paying the bank to hold onto your money. And that’s not all:
The housing bubble would also get much worse if the Federal Reserve decided to send the rates to below zero. Negative rates in Denmark have caused the prices of homes to soar as people believe they can afford a larger house with a bigger payment since the rates are negative. When that bubble crashes and people stop repaying their loans at all, interest rates will cease to matter. Homes will be lost, and people will suffer major dings to their credit scores making future buying difficult, if not impossible. –Future Money Trends
If you think that the Federal Reserve won’t lower rates in this “booming economy,” think again. The central bank has already cut rates once and is expected to ease up again later this month. Market expectations for a rate cut in September are at 92.7%, according to the CME Group’s FedWatch tool.
Greenspan added that gold prices have been surging recently because people are looking for “hard” assets they know are going to have value down the road as the population ages. Gold futures are up more than 21% in 2019 and are trading around levels not seen since 2013. Gold can be seen as more of insurance than an investment, however, it seems to be a popular alternative to stockpiling cash, and with good reason.
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Buy land. put cattle on it. My latest harvest was $1.89 per pound from birth to cut and vacuum packed in the freezer.
Better return than gold and it tastes much better.
Right now I can get a Weaner( ~ #400) for about $0.65 a pound.
So in two, or three years I can turn $0.65 into $1.89 of food.
What do you pay for steaks, roasts, and hamburger?
Mine is all $1.89 per pound. Organic grass fed.
I’m going to breed my Heifer this year that will basically be a free calf, she is good for 10 or more calf’s. Even if I chose to harvest her she is around #750 hanging weight. She was an orphan we raised. Can’t beat that price – free.
Put your money into land, raise animals, looking at 1,000’s of pounds of food munching grass is better than looking at gold or silver.
Get out of the city!!!!
Aloha.
Nice you live in a rural area. Most of us live as urbanizes, so PM’s and canned food is all about we can do. And…watch out for cattle rustlers which will become prevalent when the reset happens.
aloha
Stuck, nice idea
Certainly with negative interest rates money flees and goes into commodities and equities. The stock market crashes and equity paper wealth disappears dropping M1 & M2 like a rock. Supply and demand crash commodities simultaneously Those who are liquid (likely the sub 1%) buy in and even more wealth transfers up. I few more cycles of this and feudalism is complete.
Ain’t a damn thing going on today remotely normal.
Anyone heard from Durango Kid who always said, “Who was that masked man”? I always liked to read his economic views regardless if I agreed or not.
Texas is Falling:
* The Border is wide open. Illegals and communist californians now determine Texas elections.
* China and Russian intel are all over North Texas OPENLY.
* Drug cartels controls Paid off Politicians, dirty Police, dirty Judges.
* Roads are pot holed and trash seldom picked up along roads. Road rage, pot holes, trash, tolls, Texas roads.
* RFID tracking transponder forced on people due to all new roads toll roads.
* Cameras are everywhere you go. I had gang of Police inside theater, mad dog me, surround us, and put phone cameras in my face when going to movie with lady friend. I have Never bought another movie ticket. I refuse to pay to be abused. Brother said the pic is facial recognition database material.
* Austin has been turned into one big homeless camp by the politicians. One big homeless camp.
* Dallas has homeless panhandlers on every major intersection.
* Dallas city, wants homeless Aid cut.
* Dallas has removed 100 year monuments. Just like the Communist did in satellite countries they took over.
* Dallas murder rate at all time high because of former Detriot Police chief’s policies, now in charge of DPD.
* Police officers being charged for simply doing their jobs. Fleeing illegal Mexican felons given special priviledges. Fleeing ARMED drug dealers given special priviledges.
It is as if politicians WANT the chaos. It is Intentional. The politicians policies allow the homeless slums, agressive panhandlers, trash on roads, etc.
Rioter whiners cry black lives matter.
How about:
* Blue Lives matter.
* Black Rifles matter.
Betrayed:
* Gov Abott threatens Texans with fusion centers if they stand up against the illegal invaders and demand border security.
* Lt gov Patrick threatens more idiotic communist type gun laws.
These Politicians have RUINED a once great state.
Where else is there to go? What state to flee to with common sense? Texas has been over run with california communist and illegals. The communist have overwhelmed the local population. The voting demographics have tilted to communist.
Dallas city now run by leftist. Top Eight spots, LEFTIST
These large population centers will ruin the state for rural people who still have common sense. Tell me where to move to.
No one is taking my rights while stealling my money with insane high property and high school taxes. Where do you suggest going? I want to live in Peace, be left alone, gainful employment, and leave my Constitutional Rights ALONE. Honor the Constitution. Where is this place?
And I also don’t want to be bum rushed by homeless while walking down a street or driving to work. Just leave me alone.
Demographics are a Weapon of war.
5g is a weapon of war.
AI and robots will be unleashed on humans.
Anyone know where to go? I refuse to be treatened, abused, stolen from with zero services, toll roads and high taxes keep my family broke. If they come for Texans guns there will be firefights like Bosnia/Croatia.
Guess that is why all the helicopters flying over city in formation? Practice for snatchiing people up?
I’m Not worried about a few random nutjobs doing violence. My family are well trained. All brothers, Marines and Police. We all shoot. Nutjobs are not the problem. There have always been violent crazies. Always will be. Lead cures violent crazies permanently. That is why you MUST be armed.
I fear the politicians policies will unleash hell from the pissed off natives. They will never give up arms without massive loss of life. I have seen war. I never want my children to see violence, the industrial scale murder of war, or civil war.
I’m a peaceful man with children. I need a place to go to keep them safe from government. Where is that place? A place of Peace and respect for the US Constitution. Where?
Does anyone see this comment or shadow banned like other people here? Please Tell me where to move to, Safe, Peaceful, Sane, jobs.
When the loan defaults start in earnest those rates won’t stay low for long. The FED can hyper inflate to buy the interest rates down on government bonds but who will buy them? Germany is not have much luck at their negative yield bond auctions lately. Greenspan should be doing his interviews from behind bars like every other central banker.
Buy (fill-in-the-blank) financial instrument or useful item…
But, the powers-that-shouldn’t-be can just as arbitrarily decide that you are not the owner of anything, on paper.
So watch your savings disappear between inflation and negative interest rates. You will be truly better off burying your money in the ground in mason jars in your back yard! Welcome to the new America.
No need to raise cattle. They’re grazing all around us. When the SHTF they’ll stampede and there’ll be a call for BIG government to round em up. Hay rations will be cut in half to keep em half full and half happy. Getty uP! Getty uP ya all!
Negative rates intrigue me. Why would the banks, who control all the money and power allow or want negative rates? They make no money? Why are they lending on overpriced real estate? And when rates go lower realty prices soar more. Is it to nationalize accounts they hold? Making them more powerful? Are they not scared of a gun wielding populace?
There does not seem a way out of the coming collapse. Wages stagnant, rates declining, stock market at unprecedented pe ratios, the millennials want socialism when our debt is already unsustainable, the constitution is void, our justice dept and highest political office were compromised in the last administration, maybe even the current, christianity is dying fast, white males are openly ostracized, white culture is considered racist so you cannot have any pride of heritage, nationalism is called nazism or fascism, patriots are targets, open borders are wrong and illegal but wanted by the left. I can go on and on.
What is the agenda? What does “they” want? Who are “they”? Why do “they” want “that”? When you answer these the you should ask the right question………..”who is John Galt”? The answer…….just may be the only means of revolution, existence, and how to maintain a Republic.
There were historically screens and blockades, similar to what is put around construction sites, to keep the elitists from seeing commoners, in public. (Or, is it the other away around.)
It would be fine by me, to live in a Gault’s Gulch, like when we talk about leftists, behind their walls.
I think of brownwashed (and eventually drowned) businesses, which I used to like, and can only imagining them remaining open, by personal reference, like a club.
imo, that’s how a plutocracy would work.
(Pardon my typing. Can’t there be an edit function, here.)