Wednesday, December 19, 2012

Peter Schiff Was Wrong-ish

I was watching this video.

Schiff said that there would be non more QEs, nothing beyond QE3, because Bernanke called for QE3 to be indefinite. Quantitative easing is needed to stimulate the economy, because interest rates are at 0%. Paul Krugman said that QE3 wasn't enough, but how would more be possible? Well, Krugman might get his wish.

Back in July,'s AP article France sells bonds at negative interest rate, they wrote:
In a sale Monday, the treasury sold three-month bonds at -0.005 percent, and six-month bonds at -0.006 percent. The treasury agency says it's the first time they have registered negative yields.
Well, there you go. Krugman can have his wish: more and more money! When the Fed gives money to the banks at negative interest rate. Let's say the Federal Reserve should lower their interest rate to -1%, so the general public can really understand the madness.

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