Update on Eurozone crisis

Kononia eNews_Breakup-of-EUAccording to last night’s headline, Negative interest rates put world on course for biggest mass default in history. Its sub-line continues:

More than two trillion-worth of eurozone government bonds trade on a negative interest rate. It’s a bubble that’s bound to end badly.

Jeremy Warner’s article opens as follows,

‘Here’s an astonishing statistic; more than 30% of all government debt in the eurozone – around €2 trillion of securities in total – is trading on a negative interest rate.

‘With the advent of European Central Bank quantitative easing, what began four months ago when 10-year Swiss yields turned negative for the first time has snowballed into a veritable avalanche of negative rates across European government bond markets. In the hunt for apparently “safe assets”, investors have thrown caution to the wind, and collectively determined to pay governments for the privilege of lending to them…’  (continue reading)

See my previous references here and here concerning Switzerland.

His closing remark is most noteworthy, with emphasis added:

‘Both Keynsian and monetary economics seem to be in some kind of end game. What comes next is anyone’s guess.’

[Image by courtesy of Koinonia House.]

2 thoughts on “Update on Eurozone crisis

  1. Oh dear. I see a financial train wreck ahead. It’s a pity all of countries are owned by central (reserve) banks and aren’t insulated from this. Looks like its the end game. What’s it going to look like? Will the wealthy will get even richer and the middle class disappear? May God be with us and make His face to shine upon us. God bless, Jo.

    Liked by 1 person

Your comments are warmly welcome (NB: Comments Caveat & Prophecy Protocol on homepage sidebar).

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s