Monday 14 August 2017

When money dies..................from Rico

Looking at what the FED has done to the 'value' of money over its tenure as America's central bank, many seem to miss the most obvious point of all while focusing on the logical progression from ZIRP (zero interest rate policy) to NIRP (negative interest rate policy).
Interest rates are the 'price' of money.
- You pay interest to borrow money.
If interest rates are zero, or turn negative, then money is 'worthless.'
So it was in Weimar Germany, so it is in Venezuela, and you get three guesses who's next (but the first two don't count).....

1 comment:

Lola said...

Rico. The really worrying thing is that no one is listening to us.