The European Central Bank is so out of touch with the economy it is frieghtening. They see that they have a range of options to consider including negative interest rates. What they do not grasp is that people will not invest and start businesses simply because interest rates are too high. The people must see […]

QUESTION: Not sure if this is even possible. Can the consumer savings interest rates go to a level at or below Zero that will drag down the lending interest rate lower? Thus making borrowing even cheaper to stimulate the economy with more cheaper debt and punish savers. Will our designed economic system sustain this thinking […]

QUESTION: Martin, Continued blessings for publishing your remarkable insights.  Will the banks pass on their negative interests rates to the depositors? What will be the effect of depositors removing their cash from the banks? Thanks M ANSWER: In the US, the talk behind the curtain is to impose negative interest rates on the consumer. Banks have […]

Mario Draghi, President of ECB, has taken the European Central Bank deposit rate to negative territory. He cut the deposit rate for banks from zero to -0.1%, to encourage banks to lend to businesses rather than hold on to money. This has been in the works ever since Larry Summers floated the idea before. In […]

QUESTION: Mr. Armstrong; I do not quite understand negative interest rates. Can you explain what these people are doing now? Thanks GS ANSWER: Very simple. You can lend me money. I then return only 98% and the 2% is what you pay for the privilege to lend me money. Makes sense from their point of […]

Rates have been moving lower for it is now widely known behind the curtain that the ECB WILL take rates NEGATIVE in their dire efforts to stimulate this dead corps. Central Bankers cannot comprehend that between FACTA preventing world trade, rising taxes, and NSA really creating reverse protectionism, there is not much on the horizon […]

In reality, easy-money policies and below-normal interest rates are here for a long time to come. We are seeing pressure on the labor market still has not fully recovered from the financial crisis and recession. We are at twice the level where we were prior to the economic turn in 1929 that became the Great […]

History repeats because the passions of man NEVER change. Russian interest rates have soared and she has found itself in an embarrassing situation. Russia has had to cancel the sale of government bonds for the seventh time, because she cannot find any buyers.The consequences for the country are very dramatic, yet predictable. Russia will raise taxes […]

When Larry Summers stood up and called for Negative Interest rates, people were shocked. However, such stunts are all coordinated. This was a trial balloon so that the government can judge the reaction of an idea before its time. Negative Interest Rates are in the cards. So get use to the idea. These people cannot […]

The European idea of taxing financial transactions is nothing new. The EU aims to tax financial institutions a minimum of 0.1% on purchases of shares, bonds and other securities, and a minimum of 0.01% on the notional amount of derivatives traded either on- or off-exchange. Historical evidence indicates that this will discourage foreign investment while increasing […]