Negative interest rates

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Don't Be Fooled, Negative Interest Rates Are a Massive Failure

By Diane Alter, Contributing Writer, Money Morning - October 11, 2016

Global central banks' repeated moves into negative interest rate territory would seem to suggest some positive outcomes.

But don't be fooled: Negative interest rates are a massive failure.

Here's the real story...

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Fed's Fischer Says Negative Interest Rates "Seem to Work" – He Is Completely Wrong

By Money Morning Staff Reports, Money Morning - September 1, 2016

Negative interest rates seem to be working, according to Fed Vice Chair Stanley Fischer.

With decades of financial experience, one would assume the Fed vice chair would know what he's talking about.

But are negative interest rates really working? Here's everything you need to know...

Negative Interest Rates Could Cause the Next Crash

By Cameron Saucier, Associate Editor, Money Morning - March 18, 2016

Negative Interest rates - a policy move that was once unthinkable for central banks - is quickly becoming the new normal to combat tepid economic growth.

Already, many European countries have switched to negative rates. Even U.S. Federal Reserve Chair Janet Yellen has toyed with the idea of using negative rates to fight the next recession in the United States.

Negative-interest-rate policy (NIRP) charges banks for holding money at central banks. Over time, that cost is supposedly passed down to bank customers by penalizing them for keeping savings. The overall idea is to encourage consumer spending...

A Major New Stock Market Crash Warning Sign Was Just Revealed Today

By Diane Alter, Contributing Writer, Money Morning - March 7, 2016

Even though the markets have rebounded in the first week of March, we just received a major new stock market crash warning sign today (Monday).

The Bank for International Settlements warned today that there's a "gathering storm" in the global economy. According to the bank, the storm is the result of global governments exhausting their monetary policy options.

Fortunately, Money Morning experts have developed a plan for investors to protect their money during a stock market crash situation. But before we get to that, let's dig deeper into today's stock market crash warning...

How to Protect Your Wealth from Negative Interest Rates

By Shah Gilani, Capital Wave Strategist, Money Morning • @WallStreet_II - February 24, 2016

The negative reception NIRP is getting from a lot of economists, analysts, and ordinary Americans doesn't diminish the likelihood the Fed will resort to this disastrous policy if it sees an emergency on the horizon.

And as sure as the next emergency's coming, so are negative interest rates. But don't believe for a second NIRP's going to save us. It's not. It's going to hurt - a lot.

There are only a few ways to protect yourself from the NIRP monster, so listen up...

What Are Negative Interest Rates?

By Diane Alter, Contributing Writer, Money Morning - February 23, 2016

With several global central banks cutting interest rates in 2016, one question we keep hearing is, "What are negative interest rates?"

A negative-interest-rate policy (NIRP) is a monetary policy tool where nominal target interest rates are set with a negative value somewhere below zero. In short, the policy means banks and customers are essentially paying to park their money at financial institutions.

Negative interest rates have become much more popular in 2016, and Money Morning experts say the ramifications are huge for global stock markets.

Before we get to the global implications, here's how popular they have become...

Rich or Poor, You Can’t Ignore U.S. Treasuries in Today’s Markets

By Keith Fitz-Gerald, Chief Investment Strategist, Money Map Report • @kfgtotalwealth - February 18, 2016

There are a good number of investors who believe that U.S. Treasuries - notes in particular - are bad for you and even worse for your money at the moment.

Why really doesn't matter... rates might rise, deflation, a bond market bubble, there's too much debt... they're riskier than you think, goes the argument.

All of those things are, well... true. Yet, I submit U.S. Treasuries are the one investment you cannot afford to be without at the moment for three reasons.

So grab a cup of joe and let me share something with you that escapes 99% of all investors.

Negative Interest Rates Mean Your Government Is Betraying You

By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt - February 18, 2016

Nearly 500 million people now live in countries with official negative-interest-rate policies, and the United States may be next.

Seven years of zero interest rates have already severely punished savers; negative interest rates will finish the job by confiscating their capital for the mere privilege of depositing it in a federally licensed banking institution.

Make no mistake. NIRP is a desperate, last-ditch measure, and it couldn't come at a worse time. Here's the deal.

The Best Investment When the Fed Turns to Negative Interest Rates

By Cameron Saucier, Associate Editor, Money Morning - February 18, 2016

Negative interest rates used to be a thing of central banking fiction.

Now it looks like our Federal Reserve is considering negative interest rates, too.

At a testimony before Congress on Feb. 10, U.S. Federal Reserve Chairwoman Janet Yellen said there was nothing to prevent the United States from adopting negative-interest-rate-policy (NIRP).

NIRP signals a lack of confidence in an economy to investors. When the Fed turns to negative interest rates, it will encourage investors to exit stocks and stockpile their cash.

Money Morning Resource Specialist Peter Krauth has the one perfect investment to protect your money against this disastrous monetary policy.

How the Federal Reserve's "Nuclear Option" Is Threatening Our Economic Freedom

By Shah Gilani, Capital Wave Strategist, Money Morning • @WallStreet_II - February 17, 2016

The soldiers of fortune at the U.S. Federal Reserve have devised an insidious plan to solidify their control over free markets and America.

This prescription envisions banks lending cheaply and consumers spending robustly, spurring economic growth and propping up beleaguered markets.

But the reality is quite different. Here's what's really going to happen, and how, if the Fed wins the battle it's about to wage, Americans will lose their war for economic freedom.

One Big Reason a Global Stock Market Crash in 2016 Is More Likely Than Ever

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler - February 16, 2016

With each passing day, the irresponsible behavior of the world's central banks brings us closer to a full-blown global stock market crash in 2016.

We're already officially in a bear market.

But now the world's central banks have started to toss gasoline on the fire with a reckless new policy. It's already making things worse everywhere it's been tried.

Here's what the central bankers are doing - and why it's bound to trigger a stock market crash...

Federal Reserve's Plan "Won't End Well" for the Markets

By Cameron Saucier, Associate Editor, Money Morning - February 11, 2016

At a meeting with Congress on Wednesday, U.S. Federal Reserve Chairwoman Janet Yellen reiterated the Fed's plan to raise interest rates in the months ahead.

But her words also showed a hint of doubt.

Yellen discussed several concerns about the economy that could make the Federal Reserve hesitate on the timing of rate hikes. She also reemphasized the Fed's willingness to experiment with controversial monetary policy tools, including negative interest rates.

Our Chief Investment Strategist Keith Fitz-Gerald made his usual appearance on CNBC to talk about why the Fed's experiments "won't end well" for the markets...

This Is Your Best Investment When the Fed Turns to Negative Interest Rates

By Peter Krauth, Resource Specialist, Money Morning - February 9, 2016

The U.S. stock market is tanking, but Japan's Nikkei 225 is soaring a little more than a week after the country's central bank announced a move to negative interest rates.

That's great for stocks, but it can absolutely demolish a country's long-term economic health. Naturally, the U.S. Federal Reserve is all for them, and it likely won't be long until NIRP comes to the United States.

So, here are the best investments for negative interest rates.