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Thursday, February 11, 2016

Central Bank Failed Interventions!

So now Yellen is telling Congress that we should prepare for a negative interest rate environment like Japan and much of Europe. Central banks all over the world have tried quantitative easing, zero interest rates,currency manipulation,  and have moved to the desperate state of negative interest rates. This is clearly panic mode. The US spent 8 trillion dollars on QE, and it had a marginal effect on the general economy, but did make the 1% a good bit richer. Japan is a zombie 40 years, they have fallen in and out of recessions, did every kind of central banck intervention, and have averaged .37% annual GDP. The market opened about 400 points in the red today, and only pared that to 200 when the middle eastern countries started lying again about possible production cuts in oil. Gold, which normally rises as an inflation hedge, is now rising on fears that all world currencies are going to accelerate devaluation. Ten year treasuries, which the Fed projected would reach 3% bye year end, is now down to 1.67, and will probably approach 1 percent in a negative interest rate environment. So, gold (GLD ETF), treasuries, utilities, and selective short index ETF's (SH DOG) are probably the only safe way to play until S&P 1575 comes!
Got in my first shirtless run yesterday, and another one  today. forecast is for 73-76 and sunny for the next 9 days. Didn't run too much as my damn back still sucks. Trying to hold out for Medicare and those artificial disks!


TerribleTerry said...

Oof, ugly everywhere you look. Feels like we all ran off a cliff and everyone is running in place hoping other countries central banks will look down first.

Terrible Dad said...

Yup....the classic race to the bottom! Pop