04/16/2017 - A Must Read By Satyajit Das: Central Banks Are Using Negative Interest Rates To Reduce Excessive Debt Levels
A must read to under how and why financial repression is happening ..
“By using sub-zero interest rates to cut excessive debt, central banks are transferring wealth from savers to borrowers .. Sovereign debt can only be reduced through strong growth, inflation, a debt default or, in the case of foreign borrowings, currency devaluation .. Apart from growth, all the other strategies involve some amount of transfer of value from savers, either by way of a reduction in the nominal value returned or decreased purchasing power .. Negative rates point to the fact that the global economic system cannot generate sufficient income to service, let alone repay, current debt levels.”
