Presenting The NIRP Club

Tyler Durden's picture

If Krugman is to be believed, the state of global sovereign nation balance sheets must be excellent as there are now 12 major nations with 2Y interest rates below 1.00% with 4 of those nations having joined the Negative-Interest-Rate-Policy (NIRP) club.

Canada, Sweden, USA, UK, Japan, France, Austria, and Finland are all currently below 1.00%

Holland, Germany, Denmark, and Switzerland are all currently negative.

Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Temporalist's picture

Purple nirple...ouch

Max Fischer's picture

Interest rates are relative, man. It's always a question of where capital can sit relative to other places.

Truth is, Krugman has been absolutely right.

Everybodys All American's picture

The truth is playing out in Japan's economy daily for the last twenty years.

Thomas's picture

"If Krugman is to be believed..." Popped a nut on that one!

Sudden Debt's picture

Belgium just went negative also... -0,016%


yesterday our debt crossed the 100% mark and nobody seemed to have noticed that one...

I think it's time to head off to the bunkers because we're going to have the first deflation neutron bomb and in 4 months the inflation hydrogen bomb.

tmosley's picture

Other places like Serta warehouses?

Max Fischer's picture

I think of you often Cliff.

Watching silver plunge by almost 50%, I'm reminded of your endearing, unwavering fanaticism and your repeated claims that you buy X amount of physical silver from EVERY paycheck, price not an issue. I can't even fathom how much wealth you've lost in the past 15 months, but I certainly admire your ability to keep chugging away in the face of HUGE losses.

My warmest regards.....

Beam Me Up Scotty's picture

Paper profits are meaningless until you sell.  So are losses on paper.

Max Fischer's picture

That mentality didn't work so well for Lehman's MBS book, did it?

Nor is it working for JPM's CDS inventory, per numerous ZH articles.

Nor did it work well for MF equity holders.

Essentially, that mentality is bullshit, but rather comforting compared to facing reality, I suppose.

Pure delusion.

Ricky Bobby's picture

Good point Max I am selling all my metals and buying GM, FB and JPM. I can't loose because our brilliant Apparatchiks trained at our best Ivy League schools will lead us out of this soft patch. By the way maybe you would know, when is my check coming?

StychoKiller's picture

MFGlobal (or was it PFG?) sent it via pony express...

LawsofPhysics's picture

Still don't know the difference between paper and physical. And how has that worked out ove the last 5, 10, 15, or 20+ years moron?  - FAIL.

Max Fischer's picture

Thank you for writing the word "fail" after your post. Saved me effort.

LawsofPhysics's picture

Answer the question then moron.  Wake me when gold falls below $300 and silver below $8, that is where my dollar cost average.  The fact that you ignore the rise in PM prices over 5, 10, 15, 20+ years tells me all I need to know.  You stink of fear.  

tmosley's picture

I still am.  If I could get silver close to spot, I would be within $10 of being able to buy at my cost average.  But I can't.

Wonder why that is?

Funny that you think of me so often.  I never think of you.  I do ocasionally think about how at the start of 2011 silver was right around the current paper level, though.

Max Fischer's picture

Holy cow.

Still got 95% of you investments in silver?

Amazing. Simply amazing.

You're a poster child for being too emotionally caught up in your investments. You should be looking for return on capital; instead you got married to a depreciating asset. lol

Did you promise, as God is your witness, to keep investing in silver in sickness or in health? For rich, or poor?

Does your wife know about your other marriage?

Max Fischer's picture

Bro, That's so fucking dumb I can't believe you'd waste your time making it.

Go sit on your TeeVee and watch the couch - It'll be a better way to spend your day.

fuu's picture

I don't even own a T.V.

LawsofPhysics's picture

Your post lacks any intellectual content troll, answer the question instead of throwing insults.  How have PMs been over the long term again?

I should know better than to feed the fucking trolls.

Max Fischer's picture

I posted long term data two days ago.

Equities win.

tmosley's picture

Sounds like you are the emotional one here.

BeetleBailey's picture

Max...the REAL truth're absolutely wrong

Cortez the Killer's picture

truth is, the Fed manipulates interest rates with the help of its captive banks.

who cares what things cost and if capital is used efficiently as long as I can by a quarter pounder with cheese at Micky D's on my SNAP card

Hedgetard55's picture



And depressing rates is the equivalent to cutting the nerves in your arm and expecting it to still work properly.

JeffB's picture

So Krugman is in favor of pushing capital towards productive things like being hidden in mattresses, safes and being buried in back yards?

At least until they can stage a fake alien invasion to get the world out of it's current, completely inexplicable and unforeseeable mess, to show the world the amazing power of central bankers with a Keynesian at the helm.


LawsofPhysics's picture

and how many of them are insolvent?  -  "Winning"

cossack55's picture

What about the BIRP club?  Bullshit Interest Rate Policy.

Sudden Debt's picture

it's their banks which are scrambling for assets and why buy the bonds at whatever price to lower the 47 to 1 hedge on their loans to make them look "solvent".
at whatever the cost...
on paper they look like they are worth a lot more than they actually are because the debt will never actually be repaid.

but on the other hand, they're kicking the can down the road for 4 more years if they can hang to it for another 6 to 12 months.

zero19451945's picture

It's time to start looking for an alternative monetary regime when you lose money in nominal terms when lending to insolvent governments.

Temporalist's picture

"Gold has gone up almost six and a half fold since the beginning of this has gone up a staggering 50 fold vs the dollar since the early 1970s."

DavidJ's picture

Time for a bubble bath!

The Swedish Chef's picture

"Time for bath salts!"


There, fixed it for ya!


On the other hand, as a Swedish tax payer I am somewhat thankful that my taxes aren´t overly burdened by interest payments.

Ivanovich's picture

It's amazing how many disciples I run into of the High Priest of Keynesian Theory.  and every single one of them gets backed into a corner and stutters their way through their argument.  But none of them, even when faced with facts they cannot dispute, ever rescinds their belief structure.  If ever I wanted to slug someone in the face, it's that guy.

agent default's picture

You have to remember one thing about the Keynesians.  They are statists, and deep down they all know they are full of shit and what they advocate is wrong.  That's why they always focus on avoiding the real issues, coming up with completely unfounded positions and proposals that basically require that you explain to world to them from day one in order to refute them. Don't bother anyway because you will be back to square one with them after five minutes.  These scamers are pandering to the gullible and know that they are talking unworkable crap.  You cannot treat them as well meaning under any circumstances.  You see they are turning the table on you in a subtle manner.  You are trying to argue based on the merit of arguments.  They on the other hand know that they have no arguments and are refining the art of soundbite.  Unless you and everybody else realizes that, they will keep getting their way, like they have done so far to a large extent.

Offthebeach's picture

Religious faith against evidence went from the church then to Marx then central planning of rigged markets. Krugman is a moderate advocate of the present commadish elite control economy.
We are the outsiders.

Mister Ponzi's picture

Austria's 2YR yield was negative for a few minutes this morning but has turned positive again.

Peter Pan's picture

A pulse rate of 40 means you are super fit but a pulse rate of zero means you are dead.

disabledvet's picture

This is the EASIEST of traps to fall into as a "normal human" and Paul Krugman is no exception. In the world of "buy low sell high" however the DISCIPLINE tells you "i must contain my emotions because they yield the incorrect result everytime"...namely "follow the crowd into the height of the frenzy" and then "follow them into the depression and sell right at the market low." And so it is with "at or near zero interest rates." There is a certain euphoria (going on in Germany i might add) that ignores the terrifying fact that "with money this cheap you are in fact at a HIGH not a low" thus the lack of what is called "risk taking" is in fact precisely wrong. The problem is that risk taking is OFF THE CHARTS in the private's just being hidden by the public sector which is "taking all the losses." Unless and until the media starts pointing out "the bubble bursting in the public sector" on account of all it trading? corruption?...then simply put "policy makers like Paul Krugman are simply on the absolute wrong track." Of course anyone who trades equities for a living would notice this immediately...and "act accordingly."

doomandbloom's picture

negative is positive.... right?

youngman's picture

Nominal will be a word we will all learn in the future....Nominal vs real

EmileLargo's picture

What happens to Krugman when the Dollar collapses? Does he at least lose his job?

PulpCutter's picture

Austrians have been predicting the collapse of the dollar, and hyperinflation, "within 12 months" for years, now. 

Instead, the USD is at 0.83+, and IBM just sold 3yr corporates at 0.75%.  Does the fact that Austrian theory is totally useless BOTHER you at all?

zero19451945's picture

Interest rates are a meaningless indicator when the Fed is openly suppressing interest rates.

LawsofPhysics's picture

All fiats are dying, any suprise that the dollar is the "cleanest dirty shirt?"  Now how is that going to work again when the dollar is no longer used by the majority of other countries in the world?  The BRICs are already doing their own thing.  Better join the military Pulpcutter and defend the dollar, especially since fewer people are willing to do so anymore.

EmileLargo's picture

Good lad! I suggest you sell all your assets and pile into USDs and stay in USDs (or 30 year treasuries - even better)  since we will be in a low interest rate "deflationary" environment for a long time to come. Makes perfect sense no?