German 10-year At 47 bps As Inflation Prints 2.3 Percent

Really efficient markets, no?   The Germans  ECB loves a real 10-year negative carry.

This is absurd and tantamount to confiscating the savings of hard working Germans.  Only going to add to the country’s already rising political tensions.

As Holger notes, German interest rates should be around 5 percent according to the Taylor Rule.

Nevertheless, gotta play the hand you’re dealt.  Complaining ain’t gonna keep the lights on.   What a golden opportunity when the European bond market breaks.

Inflation cometh.

This entry was posted in Bonds, Germany, Interest Rates, Sovereign Debt, Uncategorized and tagged , . Bookmark the permalink.

5 Responses to German 10-year At 47 bps As Inflation Prints 2.3 Percent

  1. Greg says:

    This is the reason why Angela Merkel and the EU are destined to fail, regardless of what policy measures, Trump blame deflection, Putin/Xi vilification, Brexit and other excuses she and Brussels come up with.

    German industry needs, and post WW2 has had, a very strong savings pool. Bernanke and Draghi systematically attacked G7 savings, lying that their “extraordinary measures” were a temporary response to an emergency (that their own incompetence created). More than a decade later, this so-called emergency still hasn’t been fixed. The G7 governments are still running unsustainable deficits on top of crippling debt levels. Bernanke was not the first guy to suggest a printing press, hundreds of other 3rd world banana republics ( and John Law in France) thought of this scam before Bernanke did.

    As Germany’s savings pool gets destroyed by inept G7 central bankers, so too does Germany’s ability to act as the EU’s credit card. When Draghi “succeeds” in destroying German savings, he also destroys German industry, he will also “succeed” in destroying the EU. The Wiemar republic didn’t work the last time, and it won’t work now either.

    Merkel never got buy in for all the useless terrorists and illegal immigrants that Brussels unelected bureaucrats want (not Europe’s citizens). Bringing in illegal welfare collectors is not the same as bringing in skilled workers.

    The EU is dying. It can’t pay its bills, and to quote a very wise former British PM… “the problem with socialism is that sooner or later you run out of other people’s money.”

    The EU is rapidly running out of German savings. That is the real reason for Brexit in England, AfD in Germany, Five Star in Italy, the lack of popular support for Macron, problems in Sweden and the independent of Brussels behavior throughout eastern Europe. Its all the same underlying bankruptcy.

    Socialism always leads to economic suffering. In USSR, in Cuba, in Venezuela, in Chicago, in Baltimore, etc etc etc. When the external subsidies wear out, socialism always and everywhere collapses.

    As goes German savings, so goes the unelected socialist kleptocracy in Brussels.

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