The ECB reduces rates and moves to negative interest rates

Once central bank medalling gets out of hand there’s no going back. We lurch from one insanity to the next which is why today we learn that in an effort to cheapen the value of the Euro against other currencies interest it will reduce its overnight bank lending rate to MINUS 0.1%. This is the first time an experiment with negative interest rates has ever been undertaken. That’s right – negative overnight interest rates are a first.

In the game of global currency wars central banks cannot operate in isolation. Other central banks will of course follow suit as they all try and protect their local interests. At the same time the ECB has announced that interest rates will be cut from 0.25% to 0.15%. And there was me thinking an economic recovery was in hand. That kicks that idea into the long grass. No one reduces interest rates if an economy is in a state of recovery.

Negative interest rates are insane.

The ECB will claim they are an attempt to make it costly for banks to keep money idle and to drive other market interest rates lower. They also believe that in cheapening the euro, they will get an advantage over their competitors by making euro exports cheaper.

“What next?” you may ask. Well, you can be pretty sure that quantitative easing in one guise or another is around the corner. We are first generation to ever witness central bank intervention at this level and the lack of concern amongst the public simply indicates they have no idea what is going on or how the banking system works.

Who gains from this? Why, bloated indebted governments of course – how else will they keep the party going. Print and be damned…

The madness continues and as the ECB passion for negative interest rates becomes is revealed, my passion for gold and silver just gets stronger by the day.

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6 Comments

  • At £100 to double-you’re not really competing with large scale seasoned professionals.

    Once you go down the doubling numbers you begin to compete in effect with institutions and or Goverment policy etc(as that kind of continual doubling becomes an Intrest to the other 7 billion people and stated Goverment)

    As a result-after a handful of these ‘doubling’ moves…the ability and time and competing positions from other investors and said governments etc just make the ability a compounded hardness.

    Hopefully as we become more sophisticated we can enjoy these posts but realise they are like any other headline….attention seeking!

    • I’m afraid that none of that is even remotely true, Gerry. Remember, DYWTAM was written by not one, but two, multi-millionaires using these very techniques. I suspect that you’ve been ripped off in the past by the many “get rich quick schemes” that are out there. That’s a real shame. Having done all of the fourteen levels myself, (and I watch others do the same every week), I feel highly qualified to disagree with every single one of your comments. If you’re not rich now then you have to change your thinking if you want to make serious money. Here’s the thing; “If you keep doing what you’ve always done – you’ll keep getting what you’ve always got”. Stop and think about that for a minute. I don’t know if you live in a two million pound house but if you don’t, here you are telling someone who does that this won’t work. Really? The DYWTAM Programme is a genuine no-nonsense guide on how to become a millionaire – and absolutely anyone can do it.

  • Barry, is it only 10 issues of Double your way to a Million? A friend of mine who is interested wants to know, thanks.

  • hi barry i am interested in your horse racing course and your recommendation of using isiris,i understand kevin booth has resigned from isiris do you still recommend we use this company still thank you,and also i notice on your websitethat it is still dated 2017 .

    • Good question. I have not used the Isiris service recently. I had a brilliant 11 year run but eventually I got closed down by all the bookmakers. I guess that’s a real sign of success but it was fun to do and I actually miss it. I did not know that Kevin had actually retired but I understand that the results this year have been extremely good. Maybe regular readers who still use Isiris can update me on that one and let me know how they are doing.

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