World Governments Going Bankrupt: 23 Nations Plunge into Negative Interest Rates

By Damon Geller

ECB Chief Mario Draghi

A shocking new report by PBS reveals that a record 23 countries — accounting for 25% of world GDP — now have central-bank policy rates that are negative or zero.  Negative interest rates mean you pay the bank to hold your hard-earned savings!  Six other countries — including the United States — have policy rates of 1% or less and are heading to negative interest rates in the near future.  According to this frightening PBS report, negative interest rates mean that the major nations of the world can no longer save the economy using conventional monetary stimulus.  In other words, world governments are going bankrupt.  And there’s only one thing you can do to protect your savings & retirement.

The Negative Interest Rate Conundrum

With global growth stalling, the IMF has repeatedly revised down its forecasts and is now calling for more assertive policy action to boost demand. But central banks can no longer cut short-term interest rates in most major countries, because they are already less than zero, which is exactly where the U.S. is headed.
Naturally, if banks are taking your money on deposit, most rational people will pull their money out of banks.  So, how low can rates go before we citizens switch into cash?  Central bankers have publicly said they believe you and I will keep our money in the bank even with 1-2% negative interest.  But they aren’t taking any chances.

Get Your FREE Gold & Silver Guide Now

The Abolition of Cash

As we’ve reported for months, government & banks around the world are taking swift action to abolish the use and storage of cash.  The government has started seizing citizen bank accounts with no due process.  The IRS has threatened foreign nations and financial institutions across the globe to turn over your private data and financial accounts, with the threat of financial warfare if they don’t comply.  And the Department of Justice and local police have started seizing cash from innocent citizens.  Yes, the executive branch of government has been aggressively taking citizens’ cash without due process of law.
So in short, your ability to take your savings out of banks and store it in cash is coming to an end.  And even if you do take possession of your savings in cash, how secure do you feel when the government comes knocking on your door asking about your stockpile of cash?

Governments Are Running Out of Ammo

So if rates are already going negative and can’t go any lower, what else can central banks do to fire up the economy?  Well, they can purchase longer-term assets such as government bonds to reduce interest rates — known as quantitative easing.  The U.S. conducted several monstrous rounds of quantitative easing, pouring trillions of dollars into the markets.  The problem is, excessive quantitative easing dries up the market for assets like bonds, so it’s already been tapped out.
So, where do the central banks turn next?  Desperate central banks are pushing forward into riskier assets, such as highly risky, non-bank corporate bonds.  The Bank of Japan is even buying company stocks!  Imagine the U.S. Government buying high-flying internet stocks in a desperate attempt to prop up the markets!  That’s where we’re headed, and it isn’t going to end well.

Get Your FREE Gold & Silver Guide Now

Debt Will Destroy Nations

The fundamental problem with all this government stimulus is that it can’t go on forever.  Nations around the world teeter on the edge of bankruptcy due to unmanageable debt.  Japan is being crushed by debt that has exceeded 250% of GDP.  The U.S. will soon exceed $20 trillion in debt that has no chance of being repaid!
The writing is on the wall:  world governments are going bankrupt.  And if you’re sitting on the fence trying to eke out a few more points with stocks, you’re about to relive the 2008 financial crisis all over again.  And you’ll have no one to blame but yourself for not getting out now.

Convert Your Savings & Retirement into Gold & Silver

There’s only ONE way to protect your savings & retirement from negative interest rates, the inevitable stock market crash, and the national debt disaster:  gold & silver.  Gold & silver sit outside the system, are completely private, and cannot be tracked and controlled by the government or banks.
Physical gold & silver have been the world’s greatest wealth protectors for over 5,000 years, shielding citizens from government & banking collapse during the worst crises in history. And physical gold & silver cannot be instantly seized with the stroke of a keyboard. So invest in gold & silver now, before you have nothing left to protect.
(Call (855) 833-1201 to receive your free copy of Damon Geller’s popular book, “Defend Your Money against Gov't Confiscation” AND your free Gold & Sliver guide, or fill in the form below)