Australian & German Central Bankers Join Negative Rate Wars

Australian & German Central Bankers Join Negative Rate Wars

Australia’s central bank cut interest rates to a fresh record low as it moves to counter disinflation and support a labour market hampered by high levels of part-time work and underemployment. Reserve Bank of Australia Governor Glenn Stevens and his board lowered the cash rate by 25 basis points to 1.5 percent Tuesday, as predicted by 20 of 25 economists and market bets. Headline consumer price-growth slowed to a 17-year low last quarter, reflecting stagnant wage gains and weak global price pressures. The cut reflects that “inflation is likely to stay low for an extended period, and the labor market has lost momentum this year,” Felicity Emmett, head of Australian economics at Australia & New Zealand Banking Group Ltd., said before the announcement. Full Story

Start getting used to the phrase Inflate to infinity, for that is where the central bankers are heading. The race to embrace negative rates is on, and central banks are adopting it with Gusto. This experiment will likely only end when one so-called too big to fail nation collapses triggering a severe market imbalance otherwise known as a crash. Ultimately that mega crash will also prove to be a buying opportunity, but such an event has to be played differently. No point discussing that as we are a long way from that stage.

Germany became on Wednesday the second G-7 nation after Japan to issue 10-year bonds with a negative yield, highlighting a willingness among investors to hold top-rated debt even as yields across the world collapse. Germany’s 10-year government bond yield turned negative for the first time at an auction, fetching the lowest average yield on record for such paper at -0.05 percent. Full Story

Nothing new here, we knew this would happen, and it is coming to pass as expected. Every G7 nation will embrace negative rates and so will the US. The talk about raising rates is nothing but good acting.  The U.S wants to be the last to join the Pack as it will give the illusion that the USD is still the best currency; when in fact, the only appropriate term would be the least rotten out of the pack.  The Crowd loves a story, and they will get a good one.   The end game here is to fuel the best speculation bubble ever and then pop it.

Suggested Changes

If you want freedom today, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who seek to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.

We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that are detrimental to your overall well-being. Subscribe to our free newsletter to keep abreast of the latest developments;. Mass Psychology utilised properly it can be used to spot trends in any market, and we can show how to protect yourself and benefit from these new trends. The world is changing it’s a dog eat dog world, but you do not need to descend into the pits of filth; you have the choice to distance yourself from this sub-human behaviour and empower yourself both mentally and financially; the choice lies within your palms

Other Stories Of Interest

On Fraud, Lies & Corruption Hillary Destroys Trump (August 9)

Currency devaluation wars & officers getting shot for nothing (August 9)

Fed’s War on Cash; Germany Joins Negative Interest Rate Club  (August 8)

Goldman Obtains information Illegally & Fined only 36 million (August 7)

Pope Francis States Islam should not be Identified with Violence (August 5)

Media & Market Manipulators over exaggerating Brexit Effect (August 1)

Mugabe’s misdeeds & Zimbabwe’s Path to Hell (July 29)

America Fighting Bin Laden War Not Islamic State Terrorism War (July 29)

Zero Percent Mortgage Debuts setting next stage for Stock Market Bull  (July 27)

Long Term Stock Market Bears Always Lose   (July 27)

Putin Crushes CNN Reporter Fareed Zakaria Biassed Question on Trump (July 13)

Negative rates will fuel the biggest Bull Market rally in History (25 May)