Negative yields: Sweden leads the world below zero

Financial Times/Robin Wigglesworth and Katie Martin

“The krona has now depreciated about 15 per cent against the euro since negative rates were introduced in 2015, extending its decline from its post-crisis peak to 24 per cent. Even former prime minister Carl Bildt has weighed in, saying in a tweet: ‘It’s embarrassing and painful to see how the Swedish crown continues to weaken against the Euro. This is not good for our country!’”

USAGOLD note: An interesting in cause and effect in a country already deeply immersed in a negative interest rate regime and perhaps a template of America’s future.  I have read in various accounts about how we just don’t know what the effects of negative rates are likely to be under the complicated circumstances in the current monetary system starting with the question – “What are the consequences to the global economy when the world’s reserve currency does not draw a yield?”

Repost from 8-14-2019

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