Core inflation running in the US at 2,3% - 2 yr yields at 0.679% - Who is nuts in this game?

fhl · Jun 30, 2016

drcha · Jul 1, 2016

So if you are so certain about the future, why not borrow all the money you can now (at a fixed rate of interest) to buy gold?

ironchef · Jul 2, 2016

drcha said:
So if you are so certain about the future, why not borrow all the money you can now (at a fixed rate of interest) to buy gold?

Better still, borrow Swiss Franc at negative rate (their 30 year government bond has a negative interest rate as of this weekend) and buy gold. You get paid a monthly interest to borrow and can ride the gold appreciation like Soros!

recession2016 · Jul 2, 2016

so if the stock market drops 30% but inflation is at 4% they will still not raise rates? lmao

syswizard · Jul 4, 2016

Guys - look at the metals market rally recently.....how can that be when economies across the globe are so weak ?
The only way out of this mess is to bring back "Helicopter Ben" and start dropping the cash from way up in the sky. No other alternative for central banks at this point.

victorycountry · Jul 4, 2016

A nice thread

Covertibility · Jul 5, 2016

Helicopter money won't do anything but a really big war with major reconstruction would do wonders...

Martinghoul · Jul 5, 2016

ironchef said:
Better still, borrow Swiss Franc at negative rate (their 30 year government bond has a negative interest rate as of this weekend) and buy gold. You get paid a monthly interest to borrow and can ride the gold appreciation like Soros!

You don't get paid a monthly interest to borrow, the Swiss govt does. Big difference...

ironchef · Jul 5, 2016

Martinghoul said:
You don't get paid a monthly interest to borrow, the Swiss govt does. Big difference...

You are right, I agree. But is there any way individuals can take advantage of the negative interest rate situation? e.g., trading currency futures?

Thanks.

Martinghoul · Jul 6, 2016

ironchef said:
You are right, I agree. But is there any way individuals can take advantage of the negative interest rate situation? e.g., trading currency futures?

Thanks.

Well, you can, sorta, but, firstly, you won't be able to do that for 50 years. Secondly, whichever way you end up doing it as an individual in the mkt, you'll be posting margin. The best thing you can do is borrow, assuming the rate isn't too high.