Tag Archives: debt

What you should know about negative real interest rates

How negative real rates distort everything Normally a mortgage is a liability. And bonds are a low risk, low return asset. However when real interest rates are negative you can throw these conventional concepts out the window. The graph below shows the difference between a government bond yield and inflation (CPI.) The economy experiences negative real rates when… Read More »

Island economics – Is the United States in trouble?

The US dollar fell last month and probably has further to drop. The US is facing massive stagflation pressures as it deals with rising prices, but no economic growth. This happened before in the 1970s. Here are 3 primary catalysts explaining why it’s happening again today. The US government butchered the pandemic response compared to other parts of the world… Read More »