As We Spend More, And

How Long Can Interest Rates Stay Negative? Think About This. Not Only Are You Lending Your Money To Governments, But You're Paying Them Interest For The Privilege Of Doing So.

The World Changes! So We're In A Situation Today Where The Only Policymakers That Have Flexibility Are Central Banks. But They Don't Have The Instruments! So They've Had To Experiment, And The More You Experiment, The More Uncertainty And The Higher The Risk Of Collateral Damage.

I Remember When I Was Growing Up, You Would Go To A Bank To Open A Deposit, And They'd Give You A Toaster. A Free Toaster. These Days, If You're A Company, And You Go To A Bank, They Could Easily Turn You Away! They Don't Want Your Deposits Anymore.

It Is Hard To Imagine That, Having Downgraded The Us, S & P Will Not Follow Suit On At Least One Of The Other Members Of The Dwindling Club Of Sovereign Aaas. If This Were To Materialise And Involve A Country Like France, For Example, It Could Complicate The Already Fragile Efforts By Europe To Rescue Countries In Its Periphery.

If You Happen To Be The Only One With Negative Interest Rates, You Also Weaken Your Currency, Which Means You Make Your Exports More Competitive.