CB Caused Mania

As negative interest rates spread around the globe anyone with even a little common sense should realize this can't end well. Manias hardly ever do.

But if you're looking for people with a bit of that common sense trait, you need to look elsewhere than the confines of central bank edifices. Investor quest for yield is now at mania proportions and only going to get worse as global central bankers in the main continue to pursue what has been and clearly is failed policy.

Last week the yield on 10-year U.S. Treasury notes hit 1.366%, a record close. According to one report, there is currently $13 trillion negative yielding debt floating around the globe and spreading faster than the Zika virus. There was supposedly $11 trillion before UK voters voted to thumb their noses at the EU and as late as mid-2014 none.

Italy, a country hardly known for it economic forthrightness, reportedly has $1.6 trillion negative sovereign debt. A cynic might ask where is the sovereignty in  that? Here's some more sovereignty for you. Fifty year Switzerland bonds, the nation's longest maturity holding, now offer negative yields. We know what's going on in Japan and Germany isn't much different where nearly 80% of government bonds offer negative yields.

Is there anyone left who thought corporate debt was immune to such madness. If so we have a good tax-payer secure job with plush benefits. Just apply at your local branch of the Federal Reserve Bank. What central bankers have done and are doing is a crime against humanity. Let's start at the beginning nearly a decade now ago when the Fed essentially kicked off this economic charade.

To assume that these so-called economic experts didn't realize cutting rates would end up ultimately benefiting the few and hurting the many leaves only one of two possible conclusions: either they are not economic experts and haven't a clue or they knew precisely what they where doing: screwing older people dependent on fixed income and the like or purposely widening the economic gap between the haves and the withouts to bailout their rich banker and Wall Street friends.

It matters little now because these policies are an outrage and can easily be classed as a crime against humanity. And like anyone else they should be held accountable for their actions. We think it comes under the heading more of gross negligence than the latest MSM buzz "excessive carelessness."

Either way, for those enamored with the idea of a global court, let's see how much these closet globalists like the concept.

 cafe4now.blogspot.com