With $13.7 Trillion in globally negative yielding debt, we are treading on new territory, never previously seen by humanity … ever, in commerce.
Negative yielding debt? Imagine. Would you lend $100,000 to anyone – even family – if the interest rate meant, instead of you receiving money, or being zero (aka family), that every month you (the “Lender”) had to pay the borrower, more money? Think about that! You lend someone, your hard earned dollars and then, month after month, instead of making a return on your money, you have to pay out more money? Insanity.
This alone reflects the failing of the Western Central banking system; and has never previously been witnessed in 5000 years of recorded commerce; and not enough people are talking about it – period.
Like a tsunami of capital, this $13.7Trn in negative yielding debt will – and very soon – seek out a return; and, as we speak, has already begun this process of, ebbing out of the countries whose government bonds presently provide this negative yield (Japan, Germany, France, Europe).
If one wants to really understand from more than just a surface opinion on why the recent rally of crypto, one need only understand this very under-reported tidbit of data/knowledge. A tsunami of capital, like a fire-hose, will find its way to other investments – it’s that simple. And while historically, precious metals juniors, cannabis stocks, crypto, etc. has been seen as a more “risky” investment, …