It's the last gasp of the world economy about to go under.
Posted on: July 20, 2016 at 18:17:59 CT
JeffB
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Why hasn't this ever happened in normal times? Bonds could always be seen as a flight to safety, but things would never get to the point that people and businesses would have to pay banks to take their money and lend it out.
What we're seeing is a result of countries with fiat currencies that have been blowing bubbles for so long that they can no longer keep those bubbles inflated.
ZERO interest can't goose the drug addicted economies any longer they have to practically force people to take loans... ones that would never be made without the artificial government intervention.
But you can feed the addict drugs for only so long. Eventually the party is going to come to an end.