Wednesday, March 23, 2016

It is not going to end well BUT the central banks have plenty of ammo left

The magicians at central banks, they always come out with a new trick and these negative interest rates that we have today, this is for the first time in recorded human history from the times of Babylon up to today that we have negative interest rates, and it's not going to end well. That, I can tell you.  But the sequence of how it will not end well, I'm not so sure.  But they still have a lot of ammunition.  What they can do is helicopter money. In other words, they can send you and Mr. Bloomberg and me and everybody, say a check for $10,000, and that is like throwing gasoline into a fire.... will it help the economy?  That is the question.  It won't help in the long run.  

You cannot grow an economy by just throwing money at people.