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Yields on many German bonds are negative: * https://www.investing.com/rates-bonds/germany-government-bonds https://www.investing.com/rates-bonds/germany-govern

Yields on many German bonds are negative: * https://www.investing.com/rates-bonds/germany-government-bonds https://www.investing.com/rates-bonds/germany-government-bon... 10Y bonds have been negative since April 2019, before the pandemic: * https://fred.stlouisfed.org/series/IRLTLT01DEM156N https://fred.stlouisfed.org/series/IRLTLT01DEM156N By borrowing money Germany can actually make a 'profit'.

native_samples 5y ago
That's just because all the bonds are bought by the government's themselves using printed money. It doesn't actually mean Europe is in a good position financially. Inflation is rising fast and had the potential to cause ruin. Of all times it is blue that Europe is financially wrap and unable to respond, thanks to our society being unable to detect academic pseudoscience.
- pas 5y ago
  Printed money is also cheap as long as inflation is low. For example it took trillions in unexpected spending to bump US inflation above the target 2%. And yields are going to remain low because of the aging population of the "west" put their pension into stable assets, and pension funds will buy gov. bonds. https://fullstackeconomics.com/sorry-deficit-hawks/ https://fullstackeconomics.com/sorry-deficit-hawks/
- throw0101a 5y ago
  Negative real rates are negative real rates. The yield has been dropping in the Euro area for twenty years: * https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/euro_area_yield_curves/html/index.en.html https://www.ecb.europa.eu/stats/financial_markets_and_intere... For a while you could get mortgages with negative rates: * https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage https://www.theguardian.com/money/2019/aug/13/danish-bank-la... Too much spending has generally not been Europe's problem.

native_samples 5y ago

That's just because all the bonds are bought by the government's themselves using printed money. It doesn't actually mean Europe is in a good position financially. Inflation is rising fast and had the potential to cause ruin. Of all times it is blue that Europe is financially wrap and unable to respond, thanks to our society being unable to detect academic pseudoscience.

pas 5y ago
Printed money is also cheap as long as inflation is low. For example it took trillions in unexpected spending to bump US inflation above the target 2%. And yields are going to remain low because of the aging population of the "west" put their pension into stable assets, and pension funds will buy gov. bonds. https://fullstackeconomics.com/sorry-deficit-hawks/ https://fullstackeconomics.com/sorry-deficit-hawks/
throw0101a 5y ago
Negative real rates are negative real rates. The yield has been dropping in the Euro area for twenty years: * https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/euro_area_yield_curves/html/index.en.html https://www.ecb.europa.eu/stats/financial_markets_and_intere... For a while you could get mortgages with negative rates: * https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage https://www.theguardian.com/money/2019/aug/13/danish-bank-la... Too much spending has generally not been Europe's problem.