.Notes From The Field By Simon Black
September 12, 2019 San Juan, Puerto Rico
The Price Of Gold Just Hit A Record High
A few hours ago, the European Central Bank announced a bonanza stimulus package: interest rate cuts, money printing, quantitative easing, the whole nine yards.
Europe’s economic growth has ground to a halt. The German economy actually shrank last quarter, according to official statistics.
So the European Central Bank is throwing everything including the kitchen sink at this problem. Their stimulus package is like a monetary defibrillator trying to shock Europe’s economies back to growth.
It’s pretty amazing when you think about it: interest rates in Europe are already NEGATIVE. They’ve been cutting rates for years, and it hasn’t worked.
Back in July 2008, the European Central Bank’s main interest rate was 3.25%.
By the end of 2008, it was clear the global economy was slowing down, and the central bank had slashed interest rates to just 1%.
But they kept going.
By 2013, the ECB had reduced its primary interest rate all the way to zero.Read More