Alan Greenspan says it's 'only a matter of time' before negative rates spread to the US -CNBC
"It will not be long before the spread of negative interest rates reaches the U.S., former Federal Reserve Chairman Alan Greenspan said. 'You're seeing it pretty much throughout the world. It's only a matter of time before it's more in the United States,' Greenspan told CNBC's 'Squawk on the Street' on Wednesday.
There are currently more than $16 trillion in negative-yielding debt instruments around the world as central banks try to ease monetary conditions to sustain the global economy....'We're so used to the idea that we don't have negative interest rates, but if you get a significant change in the attitude of the population, they look for coupon,' Greenspan said. 'As a result of that, there's a tendency to disregard the fact that that has an effect in the net interest rate that they receive.' He added that gold prices have been surging recently because people are looking for 'hard' assets they know are going to have value down the road as the population ages. Gold futures are up more than 21% in 2019 and are trading around levels not seen since 2013."