Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

June 4, 2019 | When Will Interest Rates Rise?

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

QUESTION: In the recent past you have spoken about rising interest rates in the USA being imminent. Just wondering where we stand on that front as rates have been in a downtrend since peaking last fall?

Thanks,

Pete

ANSWER: The rise in interest rates comes with the turn in the ECM in January. However, what you have to understand is there will be a divergence between private and public rates. The central banks really cannot raise rates without creating a budget crisis. The more likely outcome is that governments are losing their ability to borrow in the real market. The public rates are more likely to become simply pegs that render them useless in all practical terms. We have already witnessed this in Europe. The central bank created negative interest rates. All they have done is to kill the viable domestic bond markets.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

June 4th, 2019

Posted In: Armstrong Economics

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.