Falling Interest Rates / Steel Prices

[errolanderson]

The latest cut in rates has now come from Norway's central bank dropping to a negative 1/2% over the past 24 hours.

Odds are getting higher that the Bank of Canada will be forced to cut their current key lending rate of 1% later this year (IMO) as Canada's recession deepens.

To me, China's recession may have an immediate impact on spot steel prices globally. Copper, nickel, iron ore are already in steep decline which is a clear indicator of the current health of global economies.

[bucket]

Watch rebar prices. That's the indicator if things are getting better.

[rockpile]

could someone please explain negative interest rates to me? In my mind that is an oxymoron.

[farmaholic]

The step after negative interest is divorce. Oh, you meant financially, sorry.

[cottonpicken]

The last desperate attempt to save a flawed model,they don't call it the dismal science for nothing.

Anyone who has taken post secondary economics lives in the realm of Keynes,the other model is austrian.

Oddly/or not farmers seem to me to have a much more intuitive insight in slow natural growth and progression and no such thing as a free lunch.

[Hopperbin]

Rockload I was going to ask the same questiom. In my mind negative interest os impossible able

[cottonpicken]

What did the interest pay on all them war bonds issued in the past?

and what is that same ounce of gold held by a confederate soldier whizzling dixie arming the walls of Charleston worth?

Does the gold chart look different in yen/candos/rubbles?

Or does it cost you 1500 hundred now?

[Hopperbin]

Mellon picker. Your saying if my money is worth less. After my 4 percent interest for borrowing it is negatibe.

[Hopperbin]

Negative interest means borrow and gain

[errolanderson]

This is the failure of Keynes economics and mis-steps from central bankers . . . .

The ECB is now printing boatloads of money in a desperate effort to kickstart inflation. The Swiss Central Bank has tucked-tail and bailed away from the Swiss Franc pegged to the Euro. This has had devastating consequences primarily from 'bad' central bank policy. To me, the Eurozone is now at heightened risk of break-up (within 1 to 2 years)

Commodity price fallout led by the metals is a key indicator of the strain on global economies right now.
ECB money printing may give a temporary boost to European equities . . . but then what?

[cottonpicken]

Hopfrog,win a battle or win the war?

You and Errol and many others will probably be able to stomp on my face for months and months and months and then it will all unravel.

[rkaiser]

Why does no one want to answer rockpile's question.

Negative interest means that the banks will charge you rather than pay you when you deposit money; in an attempt to circulate money and stimulate the economy rather than hoard it.

1-2 years Errol? I think not.

http://www.zerohedge.com/news/2015-01-17/russias-modest-proposal-greece-exit-europe-and-we-will-lift-food-import-ban

The only thing that will save the euro and the petro dollar is a war that they con people into by getting you to hate one another. Americans shot down a some key Hezbollah dudes in Syria yesterday and sent some heavy hitter American troops into the Ukraine to get things heated up.

But then again - I am the conspiracy guy... LOL

[Hopperbin]

Buckette me and my dog are watching the rebar. Not much happenning. Still one hundred lengths there. Did cotton call me hopfrog?

[burnt]

Don't know when I laughed so much over a scary movie...

[SASKFARMER3]

Basically Negative interest on savings is like the one post suggests they want you to spend what ever you have in savings or they will take a cut for holding it for you. Circulate cash.
China slipping is a worry.
India I cant see as the next great thing.
Brazil has issues. Argentina has issues.
Is it 2008 all over again.