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keith95
Member since May 2014
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has posted a comment on the article :
>NIRP Is Absolutely Crushing Big Parts Of The Finance World - John Rubino - Dollar Collapse
OK so lets do some simple sums .... interest rate return from the Bank ... 0.5%, meanwhile inflation at -1.5% (see price of oil by example) with a net gain of 2%. On the other hand interest rate return from the bank at 5% while inflation lies at (say) 7% net gain of -2% ....

... I know which scenario I would prefer



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3120 days ago
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Beginning of the headline :Savers are the obvious victims of the past few years' plunge in interest rates. But there are other casualties, including money market funds, which have no reason for existing if their yield is negative, and insurance companies, which price their policies on the assumption that they'll earn good returns on their bond portfolios. As bond yields plunge, the returns insurance companies can expect are also plunging, forcing them into huge write-offs and, soon, steep premium increases tha... Read More
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