Zero Hedge — Entire Swiss Curve Goes Sub-Zero - Global Negative-Yielding Debt Spikes To New Record High

 How low can it go?

WTF is going on!!

Zero Hedge
Entire Swiss Curve Goes Sub-Zero - Global Negative-Yielding Debt Spikes To New Record High
Tyler Durden

Martin Armstrong — Germany & THE 800 POUND GORILLA

Hmm. Creditanstalt in the making? 800 pounds may be on the light side. This would fit Armstrong's model, which sees the Big One (shakeout) hitting in 2017.

Armstrong Economics

Germany & THE 800 POUND GORILLA
Martin Armstrong

Yves Smith — Economists Mystified that Negative Interest Rates Aren’t Leading Consumers to Run Out and Spend

"Earth to economists."

Naked Capitalism
Economists Mystified that Negative Interest Rates Aren’t Leading Consumers to Run Out and Spend
Yves Smith

James Hamilton — Negative interest rates

Knock-on effects.

Econbrowser
Negative interest rates
James Hamilton

Mark Gilbert — Currency Wars Have a Nuclear Option

If rate cuts and currency-market interventions don’t do the job, capital controls -- the introduction of taxes and prohibitions to regulate the flow of money into and out of a nation -- may creep higher up the agenda of increasingly desperate central banks. 

Three years ago, the International Monetary Fund softened its strict opposition to such strategies, conceding that "in certain circumstances, capital flow management measures can be useful," with the caveat that "they should not, however, substitute for warranted macroeconomic adjustment."

Further sign of a breakdown of the neoliberal order? The big boys love neoliberalism until it hurts them.

Bloomberg View
Currency Wars Have a Nuclear Option

Mark Gilbert, Bloomberg
ht/ Yves Smith at Naked Capitalism

Miles Kimball — Why Scott Fullwiler Misses the Point in "Why Negative Nominal Interest Rates Miss the Point"

FYI

Confessions of a Supply-Side Liberal 

Why Scott Fullwiler Misses the Point in "Why Negative Nominal Interest Rates Miss the Point"

Miles Kimball | Professor of Economics and Survey Research at the University of Michigan