Negative Interest

Podcast

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Alasdair Macleod: All You Need To Know About Negative Interest Rates

The implications of the ECB's radical decision
Sunday, June 8, 2014, 10:14 PM

On Thursday, the European Central Bank (ECB) took the historically unprecedented step of lowering certain of its interest rates below 0%. In a report to our premium subscribers immediately following the announcement, Chris likened the move to the policy equivalent of dropping a neutron bomb.

In the days following, despite the ECB attempting to clarify its stance further, many questions still linger; most notably: What exactly will the implications of this negative interest rate (NIRP) policy be? » Read more

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The European Neutron Bomb Has Dropped

Central banks have gone insane!
Thursday, June 5, 2014, 11:25 AM

For anybody drinking the economic recovery Kool-Aid, today's historically unprecedented experiment by the European Central Bank (ECB) to impose negative bank interest rates should be like a bitter squeeze of fresh lemon on the tongue.

If things are so rosy then why exactly are such desperate measures necessary? » Read more