by Wolf Richter
Consumer Debt with Negative Rates is “a Perversion.”
I’m not sure what, if anything, Ewald Nowotny, Member of the ECB Governing Council and Governor of the Austrian National Bank, and I agree on in terms of monetary policy. But today he said something that is exceptionally truthful – and a glaring expression of just how hypocritical a central bank and the people that run it are.
Nowotny’s keynote speech today at the European Forum Alpbach in Switzerland was titled (my translation from German), “Low Interest-Rate Policies: Free Money for All, or Savior in an Emergency.”