More than 30 per cent of global bonds are now trading with sub-zero yields

This article in the FT reports that, “There is now more than $16tn worth of bonds trading with sub-zero yields, or more than 30 per cent of the global total.”

When an investor buys a government bond that pays negative interest it means they are paying that government to keep their money ‘safe’ rather than risk it in an investment that might fail completely.

When a third of all bonds in the world are doing this it means that growth has stopped — the whole system is grinding to a halt.

This is hardly surprising when we have been using the resources of 1.6 Earths for the past decade and more, and when we have killed 60%+ of life on Earth in the past 50 years and are currently burning what’s left.

The FT reports “The rise of negative-yielding debt… has accelerated over the summer.”

“Something is going on, and that’s causing . . . a total rethink of central banking and all our cherished notions about what we think we’re doing,” James Bullard, president of the St Louis Federal Reserve, told the Financial Times. “We just have to stop thinking that next year things are going to be normal.”

https://www.ft.com/content/314c626a-c77b-11e9-a1f4-3669401ba76f

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