Germany for First Time Sells 30-Year Bonds Offering Negative Yields

in #informationwar5 years ago

Germany sold 30-year debt at a negative yield for the first time, as investors desperate for safe assets bet that further falls in yields will boost the value of the bonds in the future.

Investors buying debt at a negative yield get back less than they paid if they hold on until maturity. In Wednesday’s sale, Germany borrowed €824 million ($914 million) through bonds that pay no interest. The bonds were sold slightly above face value, so when they mature in 2050, Germany will pay back €795 million.

Demand for government debt and high-grade corporate bonds has been huge this year, after major central banks responded to growing fears of a global slowdown with fresh rounds of interest-rate cuts or other looser monetary policy.

My guess is anyone buying these bonds is not going to hold onto them for 30 years. I'm no bond expert but I think the only ones buying these bonds in any serious numbers are central banks. Any smart person can see that these central banks are just printing money to prop up phony economies and once enough people realize this than it's game over for fiat currencies.

Alternative to fiat are Gold and Bitcoin. Bitcoin is up like 300% this year and Gold is up around 25%. I don't see Europe's economy improving anytime soon and the trade war between the US and China is probably going to worse before it gets better so I think Gold and Bitcoin will be strong performers for a while.

Trump has this to say on the matter.

There's inflation it's just that central banks have been very good at suppressing manipulating home loan rates and commodities prices.

Source: https://www.wsj.com/articles/germany-for-first-time-sells-30-year-bonds-offering-negative-yields-11566385847

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Fiat money that constantly loses value and you have to pay people to hold for you. Why would anyone accept such rubbish as a medium of exchange? It’s obviously not a store of value. So not really money at all.

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Crazy days - how long will make believe and magic fiat work?

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