SINCE 1694!
Today's crazy news out of merry old England is: their central bank has now set interest rates at the lowest point in its history. That's since 1694.
Or, put another way, the lowest in 315 years.
As the discussion proceeds about the depths of this economic downturn, (for example: how deep, how long...) hold this thought: through all the economic ups and downs of the last three centuries in England, which does include both World Wars and The Great Depression, now the rates are set the lowest.
Again, watch bonds.
As the central bankers of the most of the world print paper like crazy, they fail to explain how this is going to play out. In fact, they are flying by the seats of their pants, and probably lighting candles down at the local cathedral while praying for a miracle.
Stay turned.
So far, they are finding it beyond their abilities to dispose of the hundreds and hundreds of trillions of dollars of off balance sheet derivative debt instruments. They are fighting a cancer that is not responding to their voodoo chemo.
Cheers!
