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Negative Interest Rates Tantalizing Stupidity and the Case for Gold

Interest-Rates / US Interest Rates Oct 11, 2015 - 07:51 PM GMT

By: Mike_Shedlock

Interest-Rates

Financial Repression Insanity

Purportedly the Fed is ready willing and able to go to next step of financial repression insanity.


Tantalizing Stupidity

For starters, negative interest rates should be seen as what they are: theft.

Actually, the inflationist policies of central banks are theft, but negative interest rate proposals go one step further down the rabbit hole.

With this proposal, we can add Narayana Kocherlakota, president of the Minneapolis Fed, and Miles Kimball, an economics professor at the University of Michigan to the never-ending list of economically illiterate jackasses.

There is absolutely no benefit with financial repression measures that further punish those on fixed income. The positive effects these clowns see are nothing but a mirage that will vanish as soon as asset bubbles collapse.

The problem is debt coupled with asset bubbles created by debt, yet the proposed solution is to make people spend more while taking away scarce resources of those who save.

Financial Repression

I recently discussed financial repression with Gordon Long.

Our focus in that interview was the sorry state of affairs in Illinois. Our next interview no doubt will be on negative interest rates.

Case for Gold

It is F*ing stupid to attempt to force people to spend money on things they don't want or need on the inane belief demand is too low and wasting money is the cure.

These economic idiots will never stop, which is one reason why I am firmly committed to gold over the long haul.

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2015 Mike Shedlock, All Rights Reserved.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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