nakedempire


The American Empire in a Changing World



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Tuesday, July 10, 2012

''Negative rates and the currency wars''

From IFR

''It’s not that negative interest rates – under which investors pay for the privilege of lending money – are not driven partly by terrible growth prospects and a rising threat of deflation.

They are, but they are also the manifestation of monetary policy that says, in essence, to global investors: “don’t let the door hit you on the way out.”

That’s because a central bank which is desperately looking for growth – and that means just about all of them – would like nothing more than to see its currency depreciate.''

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