Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Lowest Interest Rates in 5,000 Years and All I Got Was This Lousy Economy

  by    2   1

Do you know the last time the world’s interest rates were this low?

About 5,000 years ago.

Let that sink in for a moment.

War-on-deflation

Since the financial crisis in 2008, world governments have printed $12.3 trillion of money. Central banks have cut interest rates 654 times since the Lehman Brother collapse. There are nearly $10 trillion worth of negative yielding bonds.

And what have we gotten for all of this quantitative easing, interest rate slashing, and central bank monetary manipulation? Economic growth in advanced economies that won’t likely eclipse 2% this year and a global debt problem that has only grown more acute.

Chief investment strategist at Bank of America Merrill Lynch Michael Hartnett put together the statistics. He said it all adds up to the “astonishing history investors are living through today.” He didn’t come right out and say it, but Hartnett identified the real impact of all of this monetary policy – a fake wealth effect:

The cocktail of QE, ZIRP and NIRP has been a potent one for Wall Street and the price of financial assets in the past eight years…And yet the bull market has waned in the past 18 months, there has been no ‘normalization’ of growth, rates and asset allocation, no ‘Great Rotation,’ and bonds and stocks have been trapped in a Twilight Zone of volatile trading.”

Earlier this year, a former Federal Reserve Bank official basically admitted the whole thing was intended to create a “wealth effect.” Peter Schiff called him out on it in a podcast:

[Richard Fisher]was on CNBC yesterday. I can’t believe some of the things he actually said. But he admitted that he and his buddies at the Federal Reserve engineered – and that was his word, ‘engineered’ – a stock market recovery rally. That they front-loaded a bull market. He said this. He said the Federal Reserve did it deliberately to create a wealth effect. Yes, they wanted to create all this phony wealth based on an artificially pumped up stock market. They wanted all this phony wealth to cause us to make stupid, irrational, reckless decisions.”

Eventually, the stock market bubble is going to burst.

The other legacy left us by this crazy monetary policy is spiraling debt. Bond guru Bill Gross at Janus Capital called the $9.9 trillion in negative-yield bonds a “supernova that will explode one day.” Gross said global yields have hit the lowest point in 500 years.

The economic uncertainty caused by global debt is just one reason to buy silver. Download SchiffGold’s Free Report: The Powerful Case For Silver

So, what’s next? What happens when the next recession hits? In fact, Peter Schiff has been saying we are already in a recession.

As Peter put it in a recent Schiff Report video blog, the Fed has checked us into a monetary roach motel. The central bankers will ultimately resort to more of the same – interest rate cuts and yet another round of quantitative easing. As Peter put it on CNBC last week, this time around, we’re not looking at a financial crisis. We’re staring down the barrel of a currency crisis. Ultimately, the central bankers and government policy makers will sacrifice the dollar on the altar of the stock market.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Feds Run Second-Biggest Budget Deficit in History; Spending Up from 2020 Record

The federal budget deficit for fiscal 2021 came in at $2.77 trillion. It was the second-largest deficit in US history, just behind last year’s $3.13 trillion shortfall. Despite falling shy of the deficit record, Uncle Sam spent even more money in 2021 than it did during the depths of the 2020 coronavirus recession.

READ MORE →

Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]

READ MORE →

Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

READ MORE →

JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.

READ MORE →

American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]

READ MORE →

2 thoughts on “Lowest Interest Rates in 5,000 Years and All I Got Was This Lousy Economy

  1. jrj90620 says:

    It’s really amazing how much humans are copycats.It’s like if enough central bankers trash their currencies,then it’s OK to do the same.If you stand back and look at it rationally,it looks crazy,but if enough of your peers are doing it,then it’s OK.Same thing for all bull and bear markets or other human behavior.In the future,there will be books and movies about this insanity,happening today.

  2. WDXAS says:

    True true. And still there’s millions of people who don’t have a clue about this… It’s just sad how good the system is rigged.

Leave a Reply to WDXAS Cancel 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