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Greenspan says ‘there is no barrier’ to negative yields in the US

ZZZZZ

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Mr. Greenspam and Eggs gives his blessings.

Stick a fork in the entire global financial system. Buy metals.

Only a Central Banker could claim "Zero has no meaning "

https://www.cnbc.com/2019/08/13/gre...s.html?__source=sharebar|twitter&par=sharebar
PUBLISHED 2 HOURS AGOUPDATED 2 HOURS AGO

Greenspan says ‘there is no barrier’ to negative yields in the US

Maggie Fitzgerald@MKMFITZGERALD

KEY POINTS
  • Former Federal Reserve Chairman Alan Greenspan said nothing is stopping the U.S. from getting sucked into the global trend of negative yielding debt, Bloomberg reported Tuesday.
  • “There is no barrier for U.S. Treasury yields going below zero. Zero has no meaning, beside being a certain level,” Greenspan told Bloomberg on the phone.

Alan Greenspan Anjali Sundaram | CNBC

Former Federal Reserve Chairman Alan Greenspan said nothing is stopping the U.S. from getting sucked into the global trend of negative yielding debt, Bloomberg reported Tuesday.

“There is international arbitrage going on in the bond market that is helping drive long-term Treasury yields lower,” Greenspan said in a phone interview. “There is no barrier for U.S. Treasury yields going below zero. Zero has no meaning, beside being a certain level.”

With global central banks engaging in unprecedented monetary easing, a record $15 trillion of government bonds worldwide now trade at negative yields. As uncertainty reigns, investors are looking for a safe haven for their money, even if it means getting back less than they gave.
“Why people continue to buy long-term Treasurys at such low yields may be also due to forces having altered people’s time preferences,” Greenspan said. “But there is hundreds of years of history showing the long-term stability in time preference, so these changes won’t be forever.”




WATCH NOW
VIDEO04:25
There would need to be a US recession for interest rates to go negative, says CIO says

Greenspan, who chaired the central bank from 1987 to 2006, said nothing is standing in the way of the U.S. breaching the zero level.

The U.S.-China trade war is putting pressure on the 10-year Treasury note, which nearly inverted with 2-year Treasury note, a historic recession indicator. Weaker economic data domestically and abroad also pressured the Federal Reserve in July to cut interest rates for the first time since the financial crisis.

Greenspan is not alone in his hypothesis.

Pimco, one of largest fixed income mangers in the world, said last week that “U.S. Treasuries – which many investors view as the ultimate ‘safe haven’ apart from gold – may be no exception to the negative yield phenomenon. And if trade tensions keep escalating, bond markets may move in that direction faster than many investors think.”

JP Morgan, in a 2016 analysis, said the Fed might one day be pushed to negative yields.

“If recession risks were realized, the need for substantial additional policy support would likely push the Fed towards NIRP,” the bank wrote.
— read the full Bloomberg article here.
 

Aurumag

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Hey Scorp,

Here is another great example of an old perp who still has too much power.

93 years old and still blabbing away.

He appears to be warning someone...
 

FoundingFathers

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Yields are soon going to shoot higher, not lower. At least in the US.

JMO.
 

Buck

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Who invented Zero is in contention: India or Mesopotamia

and i really don't care

But:
To be a professional and to expect that zero is an efficient number is to be ignorant

To be a professional profit-taker, to expound that zero interest is o.k. is to be a liar

to be a government and to instill a zero percent profit rate for all the world to participate in, is to be dis-ingenuous


It's A Failure Rate Beyond Comprehension


and to risk in it, is too much for me...
 

anywoundedduck

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Nothing said about outright robbery of every bank depositor.
Paying the bank for the privilege of giving them all your money.

Keep stacking folks. If you don't hold it, you don't own it.
 

ZZZZZ

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Nothing said about outright robbery of every bank depositor.
Paying the bank for the privilege of giving them all your money.

Keep stacking folks. If you don't hold it, you don't own it.
Even non-stackers can figure this out. Cash in the mattress is better than getting a negative return and in the process becoming an unsecured creditor of a bank.
.
.
 

Strawboss

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There was a time when Greenspan used to tell the truth...back when he was a fan of Ayn Rand...here are some of his quotes from yesteryear...

"The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
"Remember what we're looking at. Gold is a currency. It is still, by all evidence, a premier currency, that no fiat currency, including the dollar, can match."
"Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody. Gold is always accepted."
 

Aurumag

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There was a time when Greenspan used to tell the truth...back when he was a fan of Ayn Rand...here are some of his quotes from yesteryear...
He may still be speaking the truth, or a form of the truth, and when he speaks, people listen.

My translation of his little spiel:

"Get ready for ZIRP in the US, because there is no way it can be stopped at this point."

My take on ZIRP:

It will only affect savers adversely, but it is great for banks and the corporations who intend to borrow at ZERO percent in order to buy back and inflate their own stock prices, which will actually be good for pension plans and 401ks. They have been doing it for years, but now they will be able to borrow at ZERO interest.
 
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Strawboss

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He may still be speaking the truth, or a form of the truth, and when he speaks, people listen.

My translation of his little spiel:

"Get ready for ZIRP in the US, because there is no way it can be stopped at this point."

My take on ZIRP:

It will only affect savers adversely, but it is great for banks and the corporations who intend to borrow at ZERO percent in order to buy back and inflate their own stock prices, which will actually be good for pension plans and 401ks. They have been doing it for years, but now they will be able to borrow at ZERO interest.
Yup. Its the logical progression of taking the fake fiat and using it to obtain control over tangible assets...stocks, property, gold, etc...

All assets will rise in price as the currency they are denominated in devalues...

The race to the bottom is in high gear...

Wait to see what gold does once people figure out its cheaper to own gold than bonds...now that the old argument was that gold doesnt pay a yield...lol

Neither do bonds!!

I wonder how long before junk bonds are pricing negative yields...that would be the ultimate irony...

What a farce this whole thing is...

We are surely doomed. There is no way this cannot all collapse. And that collapse is gonna leave a mark...

Speaking of marks...next up after the collapse will be the one world digital currency system that requires all humans to affix a mark on their hand or forehead in order to participate in the new world order.

Mark of the Beast...coming soon to a theatre near you...
 

anywoundedduck

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Mark of the Beast...coming soon to a theatre near you...
Nah
I don't think anybody is buying it.
We all heard the stories. No marks on me.
But I will take a Global MasterCard.