Negative Interest Rates Implications - deflationary and inflationary

Discussion in 'Economics' started by TraderD, Aug 28, 2011.

  1. I think you have a very poor understanding of why foreigners (to US and UK) invest such large quantities of money at these absurdly low yields.

     
    #31     Sep 1, 2011
  2. morganist

    morganist Guest

    No I think those fundamentals are changing. Just you watch.
     
    #32     Sep 1, 2011
  3. Let me ask you this: why do you think there's a huge foreign demand for US/UK/EU bonds at these absurd levels?

     
    #33     Sep 1, 2011
  4. morganist

    morganist Guest

    I don't think there is going to be that is the problem. I think the US and UK economy are going to tank soon. If they haven't started already.
     
    #34     Sep 1, 2011
  5. Let me clarify: why do you think there has been (say, this year and last) such a huge demand to US/UK/EU bonds at these absurd yields?

     
    #35     Sep 1, 2011
  6. morganist

    morganist Guest

    The middle east unrest could have had something to do with it.
     
    #36     Sep 1, 2011
  7. And?? The REALLY big reason for steady foreign appetite over the last few years? The billions and billions that get stashed away at every auction?

     
    #37     Sep 1, 2011
  8. morganist

    morganist Guest

    So what are you saying it is?
     
    #38     Sep 1, 2011
  9. Really? You've been inventing all those macro policy products and you have no idea why there's a huge demand for US government products steadily over the last few years?

    Hint: might it have something to do with vast trade surplus that certain countries have built up? Can you complete the remainder of this thought?

     
    #39     Sep 1, 2011
  10. morganist

    morganist Guest

    Your theory is not backed up by the facts. In the UK there was a bond strike. The US might be different but that will change.
     
    #40     Sep 1, 2011