YELLEN TALKS NEGATIVE INTEREST RATES – Yellen Grilled About Negative Interest Rates By CongressFederal Reserve Chairwoman Janet Yellen faced what may have seemed like an absurd line of questioning on Capitol Hill this week: Has the Fed considered negative interest rates? The basic logic of lowering interest rates when economic conditions turn south is to spur spending. If savings accounts aren’t accruing much interest, companies and savers are incentivized to spend the cash or invest elsewhere, stimulating the economy. Major economies around the world are desperate to spur inflation; one way to do that is to cut interest rates, which typically would make their currencies less attractive. Lower currencies raise the prices of imported goods and boost the fortunes of exporters. Stock markets around the world continue to collapse as this new global financial crisis picks up more steam. BullionByPost, Britain’s biggest online gold dealer, said it has already taken record-day sales of £5.6m as traders pile into gold following fears the world is on the brink of another financial crisis.
Economic activity is slowing down all over the planet, and a whole host of signs are indicating that we are essentially exactly where we were just prior to the great stock market crash of 2008. Yesterday, I explained that the economies of Japan, Brazil, Canada and Russia are all in recession. Today, I am mainly going to focus on the United States. We are seeing so many things happen right now that we have not seen since 2008 and 2009. In so many ways, it is almost as if we are watching an eerie replay of what happened the last time around, and yet most of the “experts” still appear to be oblivious to what is going on. If you were to make up a checklist of all of the things that you would expect to see just before a major stock market crash, virtually all of them are happening right now. The following are 11 critical indicators that are absolutely screaming that the global economic crisis is getting deeper…
#1 On Tuesday, the price of oil closed below 40 dollars a barrel. Back in 2008, the price of oil crashed below 40 dollars a barrel just before the stock market collapsed, and now it has happened again.
#4 Corporate debt defaults have risen to the highest level that we have seen since the last recession. This is a huge problem because corporate debt in the U.S. has approximately doubled since just before the last financial crisis.
#5 The Bloomberg U.S. economic surprise index is more negative right now than it was at any point during the last recession. #6 Credit card data that was just released shows that holiday sales have gone negative for the first time since the last recession. slaves corporate rich poor gap “Peter Schiff” u.s. usa america “united states” imports exports trade economy “stock market” “savings account” savings “bank account” banking debt credit “credit card” money wealth jobs job employment “job agency” poverty poor christmas sale manufacturing “made in usa” 2015 2016 interest “interest rate” mortgage “real estate” gold silver “silver eagle coin” “silver coin” news media entertainment “elite nwo agenda” “binary options” data jim rogers marc faber lindsey williams alex jones infowars coast to coast am louis farrakhan rawdogletard
#7 As I mentioned yesterday, U.S. manufacturing is contracting at the fastest pace that we have seen since the last recession. #8 The velocity of money in the United States has dropped to the lowest level ever recorded. Not even during the depths of the last recession was it ever this low.
#9 In 2008, commodity prices crashed just before the stock market did, and late last month the Bloomberg Commodity Index hit a 16 year low. #10 In the past, stocks have tended to crash about 12-18 months after a peak in corporate profit margins. At this point, we are 15 months after the most recent peak. #11 If you look back at 2008, you will see that junk bonds crashed horribly. Why this is important is because junk bonds started crashing before stocks did, and right now they have dropped to the lowest point that they have been since the last financial crisis.
And I am not the only one saying this. Robert Kiyosaki: ‘Biggest’ Market Crash Likely in 2016 Author Robert Kiyosaki: ‘Biggest’ Market Crash Likely in 2016 Important: Can you afford to Retire? Robert Kiyosaki, best-selling author of “Rich Dad, Poor Dad,” warns that stock market manipulation may result in a crash bigger than in 2007. Gold and silver have crashed. Junk bonds have crashed. Chinese stocks have crashed. The Global Economy Is Officially Melting Down