Debt Rattle February 13 2015
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John M. Fox Garcia Grande newsstand, New York 1946 • $9 Trillion Question: How Will The World Deal With A Fed Rate Rise? (Bloomberg) • One Big Fear Wi
[See the full post at: Debt Rattle February 13 2015]That drought map is one scary view.
It’s a problem here also at 13° N. latitude; but oddly, it’s raining right now, during the dry season. Very rare, but welcome.
Humans do not want to face the coming eventuality (denial), but Gaia will put them aright…Re. : Negative Interest Rates!!!!!!
Time to wake up.
Negative Interest Rates have been with us for a long time.
It was just called something else.Are you getting only 0.25% interest on your bank account?
You realize that with inflation running at over 2% that you are in effect getting a negative return on your savings with the bank.Does your bank charge a fee, (+$0.65 for every deposits and withdrawals from that bank account? Of course, that means that you are getting a negative return for keeping your money at the bank. Do you need to be a senior to avoid those fees?
Do you need to have more than $1,000 to avoid those fees?Did you think that you would get around the fees by putting the money into an account and just let that account grow with interest from the bank?
Think again. You will get the following notice …DORMANT ACCOUNT NOTICE
A $20.00 “Inactive Account Notice Fee” will be charged.
After 5 years of being dormant, the fee will increase to $30.00
Savers have been under attack for a lot longer than what you think.
The rest of the world may have to deal with rising rates but probably not the US.With trillions of excess US bank reserves and the strong dollar and markets attracting money here the Fed is not going to be able to raise rates. They don’t have a magic wand. They can raise the Fed Funds rate,that’s it. As I said the world is awash with money looking for a short term home so there is no reason why US short rates should rise and the US safe haven status will put a bid under longer term rates.
One can imagine that this could create a circular reinforcing cycle for awhile with the strong dollar being a primary driver. We are in a currency war after all and the US to my mind is playing hardball now. King dollar is the policy. That’s why we are working to destroy the ruble and all that stuff about a dollar alternative system. They system only really works unless the dollar is king. Such is an existential necessity for the continuation of the status quo in all its forms and to the benefit of those now at the top.
“Mega drought”
I have some good news which does not seem to have percolated outside the rural areas of Australia. The red centre of Australia has for once turned verdant. Tourists visiting Ayre’s Rock are surprised to find it surrounded by vegetation. It does not happen very often, but that is the way it is right now.
“Red Centre businesses hoping to turn green grass into tourism dollars”
https://www.abc.net.au/news/2015-02-12/green-grass-to-lure-tourists-to-red-centre/6089222
“Todd River flowing, cattle stations cut off as rain drenches central Australia”
https://www.abc.net.au/news/2015-01-08/todd-river-flowing-as-rain-drenches-central-australia/6007246
They have had 12 months of normal rainfall in one month.
“A magic start to the year for Hayfield cattle station in the Northern Territory”
https://www.abc.net.au/news/2015-02-09/hayfield-station/6080762?section=nt
“Flooded police station and roadhouse spark quick building of levees to protect remote NT community of Kulgera”
https://www.abc.net.au/news/2015-02-13/kulgera-flood-levee/6091258
“Mega drought”
It is believed that the Sahara desert was green – until some 5,000 years ago. Coptic – the language of the Ancient Egyptians – and some Nigerian and Senegalese languages share a lot in common. Modern Egyptian dialects of Arabic contain thousands of words that come from Coptic. This suggests that the ancestors of the Ancient Egyptians and Nigerians etc. shared the area now occupied by the Sahara desert.
Things move in cycles. Some cycles are of short duration and some of very long duration.
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