03/27/2016 - Michael Lebowitz: Negative Interest Rates Are An Expense Paid On Savings
Michael Lebowitz of 720 Global Research explains how central banks are lowering interest rates to encourage additional borrowing to drive consumption & lift asset prices; all in the hope of ultimately achieving economic growth .. “Years of policy designed to encourage spending and discourage savings is likely reaching the end game; the point where those exhibiting prudence must be punished to keep the game going. At some point, and likely soon, central bankers will be forced to realize the efficacy of lowering interest rates is vanishing and is hindering achievement of their goals. When this occurs a paradigm shift in the way monetary policy is conducted will likely occur. Investors that understand this dynamic, and what it portends, will be in a much better position to protect and profit from the asset price adjustments that lie ahead.”
LINK HERE to the analysis
