Did The Debt Bomb Suddenly Stop Ticking?

Did The Debt Bomb Suddenly Stop Ticking? by Evergreen Gavekal

“Low interest rates cause secular stagnation: they do not cure it.”  – CHARLES GAVE

“Negative interest rates are the dumbest idea ever.” – JEFF GUNDLACH, the new “King of Bonds”

“Laugh but listen.” – WINSTON CHURCHILL, addressing the British House of Commons, warning it once again of the rising threat posed by Nazi Germany, to derisive laughter.

Summary

• Overwhelming amounts of government debt are among the “rich” world’s biggest threats. Unfortunately, the political will to cope with this—and the related problem of runaway entitlement spending—is nil.
• Radical monetary measures—such as quantitative easing (QE), plus zero- and negative-interest rate policies (ZIRP and NIRP)—are not stimulating growth. Instead, they are producing stagnation, “lowflation”, deflation, and...
  

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