Thursday 9 August 2018

Real Interest Rates and Global Quantitative Easing


Provided the bonds had a positive yield there would still be no takers, as the size of the debt of each country would make the payments impossible. this is called QE Forever. if Enron could've waited til today's environment, they'd be $amzn; and Jeff Skilling would be Jeff Bezos.
G8 Nations by Real Interest Rate:

Russia - 4.75%
Japan - (0.80%)
US - (0.90%)
Canada - (1.00%)
Italy - (1.50)
UK - (1.65%)
Germany - (2.00%)
France - (2.30%)

All but Russia have negative rates; which is why Global Central Bank QE will never end. no one will buy negative yielding sovereign debt.