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Global Financial Troubles an Experiment to Rothschild

from TRU News:

Low interest rates, negative yields on government debt and quantitative easing are part of the biggest financial experiment in world history, and the consequences are yet unknown, says RIT Capital Partners Chairman Lord Rothschild.

“The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30 percent of global government debt at negative yields, combined with quantitative easing on a massive scale,” Rothschild writes in the company’s semi-annual financial report.

The banker notes this policy has led to a rapid growth of stock markets – US stocks have grown threefold since 2008 – with investments growing and volatility remaining low.

However, the real sector of economy didn’t enjoy such a profit, as “growth remains anemic, with weak demand and deflation in many parts of the developed world,” according to Rothschild.

The billionaire underlined that many risks remain for the global economy with the deteriorating geopolitical situation. Among those risks Rothschild included Britain’s vote to leave the European Union, the US presidential election, and China’s slowing economic growth. Another risk is global terrorism, which Rothschild says is a consequence of the continuing conflict in the Middle East.
According to a Bank of America Merrill Lynch report in June, interest rates in developed countries, in particular America’s 0.5 percent, are now at the lowest level in 5,000 years. In their battle against deflation, countries such as Sweden, Switzerland or Japan have even turned to negative key lending rates.

Another woe is negative yields on government bonds. In June, 10-year German government bonds dipped below 0 percent for the first time in history. Janus Capital has estimated that global yields are the lowest in 500 years, and the total amount of such bonds is $10 trillion. The investment group’s lead portfolio manager, Bill Gross, is calling it a “supernova that will explode one day.”

“The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30 percent of global government debt at negative yields, combined with quantitative easing on a massive scale,” Rothschild writes in the company’s semi-annual financial report.

The banker notes this policy has led to a rapid growth of stock markets – US stocks have grown threefold since 2008 – with investments growing and volatility remaining low.

However, the real sector of economy didn’t enjoy such a profit, as “growth remains anemic, with weak demand and deflation in many parts of the developed world,” according to Rothschild.

The greatest monetary experiment in history

The billionaire underlined that many risks remain for the global economy with the deteriorating geopolitical situation. Among those risks Rothschild included Britain’s vote to leave the European Union, the US presidential election, and China’s slowing economic growth. Another risk is global terrorism, which Rothschild says is a consequence of the continuing conflict in the Middle East.

According to a Bank of America Merrill Lynch report in June, interest rates in developed countries, in particular America’s 0.5 percent, are now at the lowest level in 5,000 years. In their battle against deflation, countries such as Sweden, Switzerland or Japan have even turned to negative key lending rates.

Another woe is negative yields on government bonds. In June, 10-year German government bonds dipped below 0 percent for the first time in history. Janus Capital has estimated that global yields are the lowest in 500 years, and the total amount of such bonds is $10 trillion. The investment group’s lead portfolio manager, Bill Gross, is calling it a “supernova that will explode one day.”

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3 comments to Global Financial Troubles an Experiment to Rothschild

  • rich

    Arizona Government Looking At Gold Bonds

    Last week, in a presentation to the committee, the founder of Monetary Metals Inc. said a government issued gold bond would not only benefit the country’s monetary system but also Arizona’s economy.

    “Thanks to the Fed’s monetary policy, investors basically earn zero interest rates. A gold bond is a way for people to get a real rate of return,” Weiner said. “People are urgently seeking a way to make a yield on gold. I think Arizona will draw the world’s attention and it will draw capital inflows.”

    He explained that a gold bond could be used to reduce the state’s debt by specifying that the bond will be issued to investors who want to tender outstanding state bonds. Quoting statistics from Arizona’s Treasury department, Weiner said that it is estimated that the state’s debt is currently at $10 billion, not including unfunded liabilities.

    The committee, Weiner continued, doesn’t even need to rely on developing its own gold reserves before issuing a gold bond. He suggested creating the bond by using gold flows created from taxes.

    Arizona is one of the top gold producing states in America and has historically produced 16 million ounces of the precious metal. Currently, gold is produced as a byproduct at significant copper projects. Some of the major companies mining in the state include BHP-Billiton and Freeport-McMoran, which both generate billions in mining revenues.

    Weiner explained that under current laws, the state can actually collect taxes in gold and silver bullion. In his presentation, he recommended the state collect gold as part its severance tax of 2.5%.

    “That tax can provide the state a gold income stream, which is what you need to amortize the gold bond,” he said.

    http://www.kitco.com/news/2016-08-18/Arizona-Government-Looking-At-Gold-Bonds.html

  • Moishe

    “That tax can provide the state a gold income stream, which is what you need to amortize the gold bond,” hWeiner (a Jew) said.

    In other words we will get all your goyim’s gold with the help of your dumb state legislators.

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