One would think that industries greatly impacted by the cost of finance would get a boost, car and home sales for example, perhaps even creating a new bubble.
I'm one that hates the idea of being in debt even though I have used that vehicle in the past. The idea of borrowing heavily, say even a line of credit on the house, to buy metals, while interesting to contemplate, is not something I'd be inclined to move on.
Yes. The administration uses that playbook,but given that Japan and Sweden, and even the Swiss are using negative I rates, I think it's gonna happen.
Pretty obvious, they will NOT let Joe consumer borrow money and pay him for it though.
But, any way you cut it, it creates MANY areas of fear and uncertainty and a healthy environment for alternative investments.
I think it has been the impetus of a major portion of this recent rally in PMs and miners.
It's also the one and only scenario I can see for Gold and Silver to potentially JUMP overnight.
Thanks for your insight. On 1/17/16, SLW priced at $10.50/share and your comment about the "typical silver pig farm" - I am glad I did not take your advise - I'm up about 50% in less than a month on the pig farm silver. Where you referring to pork bellies?
Nice call - but it only bottomed at over $10/share. I believe that with the world economic problems, you better have some silver/gold assets and SLW is a good one along with some physical assets.
Maybe this is not a problem, but merely a suspicion, based on the arrogance within the financial industry. Would they use the NSA or some other government agency to find who is buying PMs with that borrowed money? Then would they conduct raids to seize what was bought using, for example, the IRS either to claim taxes owed, or ???. How borrowed money is used would probably get tracked in the same way as that for mortgages.
We are living in tyranny and nothing would surprise us. While the whole idea of using borrowed money at negative rates SEEMS very attractive, it also seems too good to be true. Undoubtedly many would benefit from this, but only those who get favored treatment, which is not a new phenomenon (ala the #$%$, Jon Corzine who used segregated funds in MF Global to buy risky Euro bonds). Those investors were compensated later, but not without fighting to get their money back. Corzine got off ?scott free?. This is the USA we live in today. Of course you might try and pull a ?Bundy? on them, but in this case to ?preserve? your capital, which also apparently is not really considered yours. We who followed this know how that turned out. Better think this through to make sure you come up with a winning strategy.
with negative rates you can borrow money, buy physical and then watch the whole house of cards tumble while sitting pretty and you'll only have to pay back worthless fiat . LOL
I've noticed they spread rumors for about a half a year before pulling the trigger on stuff so as not to shock the market.
Here is a bold prediction and the reason--
I have been saying for a while, the Fed will invoke negative I rates.
Now, they are spreading the rumor to get you used to it.
It will happen and here's why;
Negative I rates are the ONLY way for developed countries with HUGE debt to dig their way out of debt.
IF you are coerced into buying T Bills from the USA because it's the safest place to put funds, and have to PAY for that privlege, that's how they dig out of debt. RAISING rates causes the opposite effect.
Chew on that for a while, and chew on this;
Negative I rates could cause a flight to Gold and silver. And streamers will have a HUGE benefit.
Maybe establishing a national holiday to commemorate the Tribunal and fulfillment of the sentencing would keep it in the forefront of the minds of the people. Say, Bankster Eradication Day, for example.