Financial regulators all around the world have been cracking down hard on ICOs for promising more than they can deliver. At the same time governments and central banks are pulling off far worse scams, such as QE, wiping out the savings of everyone that depends on them. To hide this fact they use obscure economic jargon to confuse and distract the public, with the latest term being negative yields.
Germany Buys Its Own Debt at Zero interest
Wednesday, 21 August, will be noted in the economic textbooks as a turning point in the history of fiat central banking and possibly as the harbinger of a new global recession. On this day, Germany, the world’s fourth largest economy and the main economic engine of the Euro zone, sold its 30 year bonds at a negative yield.
The German 30 year bonds yields have been going down hard recently, but this was the first time ever that they were actually sold with a coupon officially set at 0%. What this means in simple terms is that if you were to lend your money to the German government for a 30 year period, you will have to pay for this privilege instead of getting a return like you would expect from any sane investment.
‘Knot’ sculpture at the Deutsche Bundesbank building in Hamburg, Germany
So why would anyone in their right mind agree to make such a terrible trade as investing in negative interest yields? Well, they may expect returns on German bonds to be even worse later on and want to lock in this level while they still can. Others are just legally forced to,