Tag Archives: Free Money

Submitted by Chris Hamilton via Econimica blog, The Maginot Line formed France’s main line of defense on its German facing border from Belgium in the North to Switzerland in the South.  It was constructed during the 1930s, with the trench-based warfare of World War One still firmly in the minds of the French generals.  The Maginot Line was an absolute success…as the Germans never seriously attempted to attack it’s...

Negative for 10 Years Overnight, we previewed what was about to be a historic for the eurozone bond auction, when this morning Germany sold its first ever 10Y bonds with a zero coupon. As it turned out the issue was historic in another way as well: with the prevailing 10Y bond trading well in negative yield territory, it was largely expected that today’s bond auction would likewise issue at a negative yield, and...

Opponents of the Swiss Basic Income Initiative demonstrate in front of parliament This weekend the Swiss population was called upon to make a historic decision, when Switzerland became the first country worldwide to put the idea of free money for everyone, technically known as Unconditional Basic Income (of CHF2,500 per month for every adult man and woman, and CHF625 for every child, for doing absolutely nothing) to a vote. As reported previously, the outcome of this referendum would set...

Submitted by Patrick Watson via MauldinEconomics.com, Central bankers use low or negative interest rates so that it leads to more investment. For them interest rates are a consequence of the currently very low inflation rates. Patrick Watson argues in the exactly opposite way: Falling prices are a consequence of low interest rates and not the opposite: We see two reasons why this can be true: High, maybe excessive investment is happening in China (alas not in Europe). Cheap costs of...