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Real 2 Year Treasury Yields at -1.75% (Europe Worse) Consumer Confidence Falls Again
Confounded Interest ^ | 07/13/2012 | Anthony B. Sanders

Posted on 07/13/2012 10:16:28 AM PDT by whitedog57

How bad is Europe’s economic climate? Switzerland, Germany and Denmark have negative 2 year sovereign yields. This means that investors are paying the governments to store their funds!

Switzerland has been in negative territory for a while. Note the red line that is off the chart!

Germany, the European “Big Dog,” has recently joined the negative yield club.

And the Netherlands, where they serve mayonnaise on their french fries (I tried it), has also recently joined the negative yield club.

And these are NOMINAL yields. Even the U.S. where the 2 year sovereign rate is 0.258% and the inflation rate is around 2.0% (implying a REAL 2 year sovereign yield of around -1.75%).

Of course, other countries are in the same boat. Investors are so desperate that they are willing to essentially pay a fee to park their funds with government.

Given the recent growth of government power in the U.S. (expansion of the welfare state, proposals to use eminent domain to seize mortgages, massive growth in personal taxes set to hit at the beginning of 2013, etc.), I would think that investors would be getting nervous about trusting government with their precious funds.

And the University of Michigan Consumer Confidence Index fell AGAIN. In fact, it hasn’t been above 100 since President Obama was sworn into office. In fact, it has never been above 80!

(Excerpt) Read more at confoundedinterest.wordpress.com ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: eurozone; negative; obama; treasury
This is getting really scary, particularly with Obama expanding the welfare state at incredible speed and governments seizing property,
1 posted on 07/13/2012 10:16:37 AM PDT by whitedog57
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To: whitedog57

Germany has a negative yield?

Yikes


2 posted on 07/13/2012 10:24:23 AM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: whitedog57

Moody’s downgraded Italy today:

http://www.zerohedge.com/news/moodys-downgrades-italys-baa2-a3-negative-outlook-full-text


3 posted on 07/13/2012 10:26:48 AM PDT by mojito
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To: whitedog57

Negative bond rates?

Hyperinflation!

Oh, wait....


4 posted on 07/13/2012 10:59:52 AM PDT by SaxxonWoods (....The days are long, but the years are short.....)
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To: whitedog57
When one compares John William's of shadowstats.com estimated inflation rate at somewhere in the 4-7% range, which is far more reliable than the government's farcical, manipulated inflation rate, the bond negative real interest rate is much larger than a paltry -1.75%.


5 posted on 07/13/2012 11:08:03 AM PDT by OB1kNOb (The prudent see danger and take refuge, but the simple keep going and pay the penalty. - Prov 22:3)
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To: whitedog57

Besides this, I believe the govt is lying about the inflation rate, and it’s at least 5%. That makes the negative over 4%.


6 posted on 07/13/2012 11:29:48 AM PDT by ozzymandus
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