Sweden goes NIRP.....................from Rico

Sweden's Riksbank (their central bank, est. 1668, the oldest central bank in the world) just announced it has gone NIRP (negative interest rate policy) by cutting its rate to <0 .25=""> plus announcing a program to buy ~3.4 billion Euro's worth of Swedish Government Bonds from now to the end of May.

- I'd expect to see more of this from them in future as they try to deal with the foolishness of the ECB (European Central Bank).

 

Sweden still uses its own currency, the Krona, having successfully avoided adopting the Euro.

 

As Western finance transitions from ZIRP to NIRP, and Central Banks are buying the bonds (debt) of their respective governments, consider this:

- Who in their right mind is going to buy bonds with negative yields?

- The ONLY entities buying bonds today are the Central Banks.

- Remove Central Banks from the equation, and the bond market is NO BID. At [no bid] the system collapses, and the game is over.