Central banks worldwide are putting their faith in negative interest rates. Unfortunately, these central bankers do not understand what interest rates are supposed to do, or how manipulating them will lead to a bust.
This incident is one more example that demonstrates the contempt with which the US government holds private companies. Private companies are literally being conscripted to serve the state.
Central Banks now pay interest on bank reserves held at the Fed. It may sound like only a minor change, barely worthy of notice, but it's actually a very recent and radical experiment for central banks, with large implications for monetary freedom.
The public has been successfully conditioned to view the use of cash as something suspicious. Meanwhile, thanks to growing pressure from government, private business now often considers cash to be more trouble than it's worth, writes Paul-Martin Foss.
Global markets are showing they can't handle even a tiny bit of tightening by the Federal Reserve, and other central banks are doubling down on rock-bottom interest rates, writes David Haggith. After six years of "recovery" can we ever abandon endless easy money?
Thanks to our bankrupt economic policies, faith in our regime will soon be shaken whether we like it or not. Fortunately, we don't need a majority to make some changes for the better, writes Ron Paul.
Negative rates will fail because the problem with the economy is not a problem of too little consumption or demand. The problem stems from a distorted economy caused by manipulated interest rates.
I have lived in Auburn, Alabama, for more than three decades and have never seen a Super Sized Construction Crane. Last week, two were erected in the middle of town.
As anger builds at the arrogance of central bankers, it’s becoming ever clearer that there is no plan for monetary policy to return to “normal.” As Robert Murphy explained at our recent event in Houston, the Fed’s magic trick just won’t work.
