James Turk – Central Banks Are Finally Losing Control
KingWorldNews.com
December 12, 2016
As we kick off the third week of trading in December, today James Turk told King World News that central banks are finally losing control of global markets.
Central Banks Are Losing Control
James Turk: “Everybody needs to be focusing on what is happening with interest rates, Eric. The yield on the 10-year Treasury Note is flirting with 2.50%. The last time we saw a yield that high was over two years ago. But rising yields are not just happening in the US. Yields are rising in Europe and Asia too. The upward pressure on interest rates is global, and more to the point, central banks are losing control…
For several years the financial repression foisted by central banks on savers around the world has kept interest rates artificially low. In most countries interest rates are below the true inflation rate, so savers have been badly hurt. The currency they saved lost more purchasing power than the interest income they earned. While central banks are powerful, they are inevitably overpowered when the distortions in markets and asset prices caused by their actions eventually become too great.
It looks like Mr Trump’s victory is becoming the trigger that is going to force an end to central banks’ zero interest rate policy. So here is the question that we need to be asking: Will the lower taxes and less regulation promised by Mr Trump really revitalize the US economy enough to offset the impact of higher interest rates?
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