The World of Negative Interest Rates is ‘Economic Death’
May 17, 2016 (EIRNS)—With 10-year U.S. Treasuries now at 1.74% against a 2.3% so-called "core inflation" in the United States, the global stock of negative rate debt has increased. Yields on U.S. debt went down after the United States paid more debt than issued last month, the Daily Telegraph’s Ambrose Evans-Pritchard reports.
"The Institute of International Finance estimates that almost $10 trillion of debt is currently trading at negative rates, with a crush of buyers bidding recently for a Spanish 50-year bond issue at 3.5%. Ireland and Belgium have both placed 100-year bonds in recent weeks,"
The good news is that the International Monetary Fund says that Greece should draw advantages from negative rates! According to the Wall Street Journal, the IMF will propose that Greece not pay any interest or principal on bailout loans until 2040. It also calls for bond maturities to be extended for 2040-2080 and for the interest rate for the next 30 to 40 years to be fixed at 1.5%.
Lyndon LaRouche succinctly characterized this entire process as "economic death."