Ireland’s Biggest Bank Charging Depositors Negative Interest Rate Madness

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

Deposits at Bank of Ireland are soon to face charges in the form of negative interest rates after it emerged on Friday that the bank is set to become the first Irish bank to charge customers for placing their cash on deposit with the bank.

This radical move was expected as the European Central Bank began charging large corporates and financial institutions 0.4% in March for depositing cash with them overnight.

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Gold Outlook Improves

By Alasdair Macleod – Re-Blogged From GoldMoney

There is a conflation of three related events that materially alter the prospects in favour of a higher gold price. The change in the outlook for US interest rates has probably put an end to the dollar’s four-year bull run, it is clear that there is a growing likelihood of negative interest rates in the future, and the global banking system is no fit state to manage the potential challenges of 2016. This article walks the reader through the likely economic effects relevant to the future purchasing power of the dollar, and therefore prospects for the gold price.

On the 5th February, the price action in gold was significant. At about 9.40AM New York time, a seller dumped 10,000 contracts on the Comex market, worth about $1.2bn. The price fell from $1162 to $1145, a fall of $17. Having risen over the course of the week, it was vulnerable to profit-taking, so in principal it was a good time to take the price down in order to take the steam out of the market. However, from that $1145 level, gold quickly and unexpectedly rose strongly, gaining nearly $30 into the close. Furthermore, the gold price has continued to rise this week.

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Entering The Belly Of The Epocalypse

By David Haggith – Re-Blogged From Gold-Eagle

Only a couple of weeks ago, I said we were entering the jaws of the Epocalypse….

Mexican retail billionaire Hugo Salinas Price has looked long into the stomach of this mammoth, and this is what he has seen:

“[Global] debt [as a percentage of GDP] peaked in August of 2014. I’ve been watching this for 20 years, and I have never seen anything like it. It was always growing, and now something has changed. A big change of this sort is an enormous event. I think it portends a new trend, and that trend will be to get out of debt. Deleverage and pay down debt. That is, of course, a contraction. Contraction means depression. The world is going into a depression. It’s going to get very nasty. (USAWatchdog)”

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Negative Interest Rates

cropped-bob-shapiro.jpg   By Bob Shapiro

Several countries, especially in Europe, are suppressing interest rates to the point that creditors must pay for the honor of lending the debtors money – Interest Rates are negative.

Here in the US, we have had negative REAL interest rates for most of the last generation. Negative Real Rates just means that the nominal rate is below your favorite measure of price increases in the Economy.

Negative Real Rates are extremely hard to measure, since the wonks running the various federal agencies tasked with putting out statistics such as the CPI, are political appointees. As such, they torture the data until it confesses to a low rate of Inflation. Another way to describe these agencies activities is to say, “They LIE!”

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