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We can’t borrow our way out of trouble

Bite sized money matters: Negative interest rates

“Negative interest rates are a legacy of the 2008 financial crisis. By bailing out insolvent banks and then allowing them to lever up 100x higher than before the crisis; the only recourse global central banks have now is to slow-default on trillions of debt via negative rates.” Max Keiser via Twitter @maxkeiser July 29, 2019

 

When has there ever been zero risk involved in lending money to someone? The answer is NEVER. Then why do we have negative interest rates? All currencies are doing it and the question we should be asking ourselves is, how can the central bank think this is OK?

 

Max Keiser suggests with global central banks coordinating a rolling global bailout of member banks it’s only a matter of time before one of them breaks ranks and the whole scheme collapses.

 

So, where does gold fit into all this? In short, buying gold bullion is all about reducing financial risk. These risks include things like a declining New Zealand dollar, economic recession, banking and financial meltdowns, lower New Zealand interest rates and a second GFC.

 

At NZ Gold Merchants we try to connect you to the experts and share information as it comes to hand so you can make better informed decisions and take control of your wealth.