Excerpt — NIRP

The investment firm handling personal accounts, has provided a commentary on NIRP. An excerpt:

It’s the $1 trillion question: Will the Federal Reserve (Fed) head down the path into negative rates? Unfortunately, we think it eventually may. Trade tensions continue to drag on, growth is slowing, and inflation remains stubbornly low and below the Fed’s target. Longer-maturity U.S. Treasury yields have plunged to multi-year lows and below their shorter-maturity counterparts. In response, the Fed may continue cutting short-maturity interest rates—even past zero if the yield curve doesn’t steepen, inflation refuses to budge or the economy heads toward a recession. Furthermore, as central banks elsewhere make negative rates the norm, the Fed will face mounting pressure to do the same.

The article is timely and should provide a warning that cash holdings need to be converted to gold or other non-fiat assets.