Negative-Yielding Bonds Are Breaking Records (And Why That’s A Bad Thing)


Zero Hedge: Yet the practice of stashing wealth in places where it yields nothing (and maybe even costs a bit for storage) is more common than you might think. Chinese, Russians, and Brazilians, for instance, buy US and Canadian condos and leave them empty as a way of moving their money beyond the reach of their rapacious governments. The taxes and condo fees produce a negative return, but most of the original investment will be there when needed.

Other people store gold and silver in overseas vaults, paying 1% or so each year in fees. As the saying goes, such people are more concerned with return of capital than return on capital.

Even so, the spread of this kind of attitude beyond a small group of rich-and-worried is a sign of potential trouble. Which is why the surge in negative-yielding European bonds is worth watching. more …

Opinion: With negative interest rates in 19 of 28 EU countries, US Treasury bonds yielding 2.5% -3% are an attractive alternative for yield hungry EU citizens causing stress on the euro and strength in the dollar.

The Socialist EU countries are addicted to debt and spending causing the European central bank to purchase fixed income assets to drive bond yields negative with the hope that the continent can avoid an economic slowdown. If/when the next recession hits, the EU will have only one way to stimulate the economy.

Image result for helicopter money

The European Central bank has amassed close to $2.5 trillion in debt since 2004. How long can it be before the the EU, the world’s 2nd largest economy, becomes a global problem?

Daniel 7:23-24 tells us that the final empire (4th beast) will be different from all others before it. This global empire will ‘trample and devour the earth‘, and in Daniel 7:24 we learn that some event, possibly deep economic recession, will cause the empire to break up and restructure into 10 divisions.

According to Daniel: 9:26, it is out of the revived Roman empire that the final dictator will rise:

“And the people of the prince who is to come
Shall destroy the city and the sanctuary.”

History records it was the people of ancient Rome that destroyed the city (Jerusalem) and sanctuary (Temple) in 70 AD. Current EU politics/economy are worth watching.