These negative rates come in the form of U.S. Government Treasury notes which is essentially government debt. Investors seek Treasury notes as they are seen as a safe investment. Now those investments have turn negative which means they will lose money on that investment, so who would buy them?
Investors looking to minimize their loses, investors who would rather lose some of their money in this crisis, instead of all of it. This is yet another major escalation of the current manufactured crisis.
Record Unemployment
Unemployment saw a 12x increase in filings all due to the Coronavirus Pandemic…
Now was that a true statement?
The unemployment numbers are real, don’t forget about the 90+ million working-age Americans who were not working before this.
But did the Coronavirus caused this record unemployment?
The answer is no!
Coronavirus has only killed 1,000 Americans, while the seasonal flu has killed well over 40,000 Americans. That happens every year.
So Coronavirus did not suddenly make people unemployed. Your government did that. You’re Democrat, and Republican governments did that to you and how many of you are going to go out and vote for those flunkies again.
Margin Calls
Meanwhile, the continued government created panic is causing Americans to pull money from their bank accounts. Come on, we have all seen the long ATM lines. Those are the regular everyday folk trying to take out a couple bucks, “just in case”.
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Now there an entirely different crowd who is just as concerned, the investor.
Banks and other financial institutions are seeing large margin calls, that simply means investors are cashing out stocks and other investments so they can move into cash and stop the economic bleeding. They do not want to be among the 500,000 Americans who are now former millionaires. That will also help to further the panic and continue the downward trend we are seeing financially. As planned.
Thought for the day…
Since all the real people are pulling their money out of the banks and the stock market, who is propping it up?
Well, that would be the central banks of course! Before the Federal Reserve told us there was little they could do in the future to stop a collapse, now they are telling us, ‘We’re not going to run out of ammunition’. The European Central Bank is saying the same thing.
However, it would appear they cannot save the dying patient, time will tell. At some point, everyone may start using their noggin and wonder where they are getting all the money. If money can be created out of thin air, then why not wipe all debts and start over…
Never Fear The FDIC Is Here
Listen to the FDIC Chairwoman explain to you, no worries, keep your money in the bank, we will cover it.
They will cover it as long as too many banks do not fail. The FDIC simply does not have enough money to cover every bank should it fail. This was a common headline and thought back in 2008 during the global financial collapse.
Ensure your house, financially or not is in order.