Is U.S. Heading for Negative Rates?

[biglentil]

You mean the federal reserve or U.S? The Fed controls the dollar and is a 100 percent private entity. Going negative on the interest rate will further cement its collapse as reserve currency. Luckily for them they may want that as they hold 70 percent of the worlds gold offshore.

[farmaholic]

Why was it allowed to get that bad previous to the 08 crisis. Wasn't anyone watching?

This is beyond my comprehension and almost **** all we can do about it anyway.

So now what? Thank goodness most of my assets are land. Unless that won't even be safe.

[biglentil]

Dont worry farma im sure the roving gangs of looters will respect land titles. lol

[errolanderson]

If the Fed goes negative within the year, this will force banks to lend aggressively as holding money becomes a huge liability. This may force more risky lending decisions.

But if it hikes rates and markets don't do well, emerging market contagion could hit U.S. shores intensifying economic contraction.

The Fed now has to pick its poison.

[farmaholic]

biglentil: "Lock and Load" !!! I'm going to live with Braveheart.

Errol, just who is squirreling so much money away in cash deposits? I assume money invested in equities will be immune from negative interest? So retirees with cash deposits will get punished, nice, here's how the system pays you back for a lifetime of trying to save and take care of yourself. Oh, just dump it into the market and "hope" you can maintain the principle!!

Who are the banks going to lend money to? The people already living on the loan cliff edge? Retired people on fixed incomes? Minimum wage earners who are barely making enough for basic living needs? Immigrants without equity?

House of cards...

[farmaholic]

The insanity is charging negitive interest to the very people who deposited money in these institutions that they used to run their fractional reserve banking system. (If I understand it right) And mismanaged.

[cottonpicken]

Farm,this type of stuff has happened lots and lots of times throught history just never to us.

Dont let the fear porn get to you its all relative and an apartment block or an oil well or a quarter section will always produce an income. The bottom of the rabbit hole is everything dies but at that point who gives a shit the survivalists will wish they where dead. Humans have always been top of the food chain. We always adapt and overcome.

[errolanderson]

farmaholic . . . you are right, a house of cards.

Ever watch Million dollar listing New York, LA, San Fran? Real estate deals from $3 to $20 million are always all cash.

This is hyper inflation seen in certain sectors of U.S. Economy as cash funnels into rich man investments.

[farmaholic]

Is this why we've seen such a sharp spike in farmland prices in Sask? Besides the fact it was undervalued compared to other places, it would have been a perfect opportunity to both park some some money in a solid asset and get a hell of a return from appreciation alone. I think it's run it's course though and appreciation won't be any where near the run up we had, now let's see what it's ROI is just being able to rent it out.

Thanks for the response cotton and Errol.

[biglentil]

round n round she goes where she stops no one knows

Hey look China and Russia have stopped drinking the punch and are headed for the door. Oh oh others are leaving too and dumping their punch back in the bowl, sick. Comon really no one wants the punch? Nope! US this party isn't fun anymore you soiled yourself and Canada is off puking in the bathroom. We are all outa here! Good luck with the mess and hangover loser. China and Russia are having a great party down the hall and we hear their punch is laced with gold.