Read on Twitter
Negative rates in US
BofA rates strategist Mark Cabana says that his "sense is that several [money market funds] are already preparing for the possibility of negative rates."
Here's What Would Happen If The Fed Launched Negative Rates | Zero Hedge https://www.zerohedge.com/markets/heres-what-would-happen-if-fed-launched-negative-rates
BofA rates strategist Mark Cabana says that his "sense is that several [money market funds] are already preparing for the possibility of negative rates."
Here's What Would Happen If The Fed Launched Negative Rates | Zero Hedge https://www.zerohedge.com/markets/heres-what-would-happen-if-fed-launched-negative-rates
NIRP or Negative Interest Rate Policy
Negative Interest Rates: Planned ECONOMIC COLLAPSE? — George Gammon
Published May 18, 2020
Negative Interest Rates: Planned ECONOMIC COLLAPSE? — George Gammon
Published May 18, 2020
When interest rates are POSITIVE:
Bank’s Lending Rate > Bank’s Borrowing Rate > 0
1) Banks make the spread between loans and deposits. Spread = Lending Rate minus Borrowing Rate.
2) Banks have an incentive to lend, otherwise, they wouldn’t generate any interest income.
Bank’s Lending Rate > Bank’s Borrowing Rate > 0
1) Banks make the spread between loans and deposits. Spread = Lending Rate minus Borrowing Rate.
2) Banks have an incentive to lend, otherwise, they wouldn’t generate any interest income.
When interest rates are NEGATIVE:
0 > Lending rate > Borrowing rate
Banks still (can) make the spread as before, but they NO LONGER have any incentive to lend because lending would INCREASE their interest expense.
(I don’t think Lending Rates would ever go negative. Period.)
0 > Lending rate > Borrowing rate
Banks still (can) make the spread as before, but they NO LONGER have any incentive to lend because lending would INCREASE their interest expense.
(I don’t think Lending Rates would ever go negative. Period.)
Negative Interest Rates DESTRUCTIVE Powers Explained. By George Gammon
Published Nov. 20, 2019
(Negative interest rates undermine a free market economy where prices are used as signals toward optimal resource allocation.)
Published Nov. 20, 2019
(Negative interest rates undermine a free market economy where prices are used as signals toward optimal resource allocation.)
Marin Katusa’s thoughts on Negattive Interest Rates
They are a “financially transmitted disease.”
Recorded on Oct. 17, 2019. RealVision interview.
Published on Mar. 3, 2020
They are a “financially transmitted disease.”
Recorded on Oct. 17, 2019. RealVision interview.
Published on Mar. 3, 2020
“No brainer” ideas from above interview. Natural resource sector.
1) Equinox Gold (Ross Beaty) $EQX
2) Liberty Gold $LGTDF
3) Uranium Royalty Corp $URCCF
“Commodity prices in USD won’t be going up, but local production costs will be falling due to local currency devaluations.”
1) Equinox Gold (Ross Beaty) $EQX
2) Liberty Gold $LGTDF
3) Uranium Royalty Corp $URCCF
“Commodity prices in USD won’t be going up, but local production costs will be falling due to local currency devaluations.”
Financially Transmitted Diseases. By Katusa Research.
(No publication date.) Excerpt to follow. https://katusaresearch.com/financially-transmitted-diseases/
(No publication date.) Excerpt to follow. https://katusaresearch.com/financially-transmitted-diseases/
*** “NIRP will cause the U.S. Dollar to rise, and the rest of world currencies will struggle.” ***
(That’s a dollar forecast.)
(Reason for such a rise under NIRP: reduced dollar supply. Proof: see George Gammon’s first YouTube video in this thread. The one on Repo Markets.)
(That’s a dollar forecast.)
(Reason for such a rise under NIRP: reduced dollar supply. Proof: see George Gammon’s first YouTube video in this thread. The one on Repo Markets.)
