News Story of the Day: Despite the Federal Reserve Chair Janet Yellen proclaiming that the central bank is on track to raise interest rates this year, Albert Edwards, global strategist at Societe Generale, is saying something that no one has said before, not even Peter Schiff. And that is the expected United States recession will prompt the Fed to introduce negative interest rates, just like their counterparts at the European Central Bank (ECB).
Writing in a report on Thursday, Edwards explained that the Fed would likely replace the zero interest rate policy (ZIRP) with a negative interest rate policy (NIRP). The number would likely stand at negative five percent.
“The next U.S. recession will probably arrive a lot sooner than most investors expect and will likely see more desperate monetary experimentation from the Fed,” Alberts said (via Newsmax Finance). “It goes without saying that deeply negative interest rates would be accompanied by a massively expanded QE4 in the U.S.”
Such low interest rates would possibly accelerate borrowing and spending. The Fed hasn’t raised rates since 2006 and have left them unchanged since 2008.
Chart of the Day: For those who are concerned about deflation then you should take a look at the chart below. In addition to a wide variety of products experiencing price increases, butter is the latest victim to suffer from significant rising prices. In fact, the price of butter reached an all-time high. The chart is courtesy of ZeroHedge.
Illustration of the Day: The media’s love affair with Hillary Clinton continues. It seems Clinton can do no wrong to those on MSNBC or CNN. Any criticism of her could be deemed sexist or a continued war on women. Poppycock! Clinton also perpetuates the lie that she’s an outsider and understands middle class problems. Yeah, right! Well, this illustration (courtesy of the Denver Post) highlights exactly this.
Quote of the Day: As countries all over the world persist in opening their doors to Syrian refugees, even when many of those countries are broke, pundits and politicians alike are trying to come up with solutions to the migrant crisis. Well, here’s an idea: stop meddling into the internal affairs of other countries. That’s the sentiment that former Texas Republican Congressman and three-time presidential candidate Ron Paul is pontificating.
“The US government decides on regime change for a particular country – in this case, Syria – destabilizes the government, causes social chaos, and destroys the economy, and we are supposed to be surprised that so many people are desperate to leave? Is pointing this out blaming America, or is it blaming that part of the US government that makes such foolish policies?”
Video of the Day: The Fed announced last week it won’t be raising interest rates. Now Fed Chair Janet Yellen that a rate hike is possible this year. Whatever the case, Peter Schiff got into another shouting match with Scott Nations on CNBC (SEE: Peter Schiff gets into shouting match with trader on CNBC). It was another 13 minutes of entertainment.
Leave a Comment