Contact us
CALL US NOW 1-888-GOLD-160

Negative Interest Rates a Sign of Imminent Collapse

  by    1   1

company-addison-qualeThis article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.

With apologies to Freddy Mercury and Queen, it looks like another one has just bit the dust.

You can now add the Japanese central bank to the list of banks that have ventured deep into negative interest rate territory with the sale of a negative rate bond.

japanese bond

The Swiss are already languishing in that territory with negative rates out on their 20 year bond – if you can believe it. Steve Barrow, a G10 strategist at Standard Bank tells us that there will be others soon enough. He contends that, “Germany will get there as well, and yields will continue falling, going negative where they aren’t negative.”

Negative rates aren’t just the latest strategy to stimulate growth being pulled out of central bankers’ toolboxes. They are the end-game of the international monetary system as it effectively destroys capital.

And negative interest rates are a clear signal that collapse is not only coming, it is imminent.

The gold and libertarian community likes to fixate on inflation as though that’s the key indicator of impending collapse. It is not. Inflation can be affected by a myriad of things – including economic downturn. Just because a hyperinflation isn’t happening doesn’t mean the system isn’t foundering and inching towards destruction. Interest rates are actually a better indicator of this.

You’d like to think that the US Federal Reserve is immune to such influences—except they just tried to raise rates in December, and yields still went down afterwards. In other words, the Fed is not in control. No central bank is.

us bond rate

US interest rates have now been pathologically falling for over three decades and we are past the point of no return.

Be prepared for the worst.


Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

A Black Swan With Teeth

For years, I have been warning that during the age of permanent stimulus (which began in earnest with the Federal Reserve’s reaction to the dotcom crash of 2000), each successive economic contraction would have to be met with ever larger, increasingly ineffective, doses of monetary and fiscal stimulus to keep the economy from spiraling into […]


Fed Chair Powell’s Solution Is the Root of the Problem

Federal Reserve Chairman Jerome Powell went negative in a webcast speech on Wednesday, May 13. I’m not talking about negative interest rates, although that could be coming down the pike as well. Powell went negative on the prospects of a quick economic recovery. He’s right about the prospects for the economy, but he’s wrong about the […]


Are Negative Interest Rates in Our Future?

Are negative interest rates in our future? The markets are starting to think so. On Thursday, Fed fund futures contracts began pricing in negative interest rates. They were initially priced in for December but then shifted to early 2021. This doesn’t guarantee negative rates, but it does indicate markets are beginning to expect them.


What Is the NFL Telling Us About the Economy?

What is the NFL telling us about the economy? The conventional wisdom seems to be that the economy will quickly recover once governments open things up again. But recent moves by the National Football League indicate its leadership isn’t so confident.


They’re All High on Fed Fairy Dust

Everybody realizes the US economy is in a bad spot. But most people still seem to believe it will bounce right back once we deal with the coronavirus. They’re all high on Federal Reserve fairy dust.


One thought on “Negative Interest Rates a Sign of Imminent Collapse

  1. gold says:

    Virtually the gold price remains stable for many centuries
    though the quantity of money you need to buy gold
    changes from time to time. With the prevailing uncertain economic conditions, many people are seeking ways to invest
    in gold as security against negative inflationary activity and
    as a safe, high-value investment portfolio haven. Not dumping our men and material down a bottomless fox hole
    in Europe (or Korea, Viet Nam, Afghanistan or Iraq for that

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now