The day that the banks don’t open is the day that the jig is up. How far away is that? I just don’t know and no amount of noggin strain will produce that datum. It cannot be known.
That said, I had dinner in Sydney last night with the legendary Keith Weiner. He is of the opinion that the strength of the US$ will see continued capital inflows into the US for many years to come – meaning that the system can survive there for a long while yet.
The rest of the world, including Australia, well, that is where the capital will be coming from. As fast as interest rates go negative will be as fast as capital flows out to where interest rates are still positive.
No matter how central banks sell it, negative interest rates are the end of the line. No one but a fool would willingly invest in negative rates when positive rates, no matter how small, are still available in the US. Negative interest will also necessitate the curtailing of cash transactions, which will further devastate high street economies.
Negative interest rates 1/ destroy business capital, 2/ send the capital that remains elsewhere, 3/ destroys savings and small business, and 4/ impoverishes pensioners. Every aspect of society is destroyed.
Western Europeans have not only given away their cultures, they are collapsing their capital base. As fast as they are bringing in an alien occupying force is at the same speed as they are sending their capital to the US. Mass, economic suicide is upon them in a Jonestown orgy of incomprehensible destructiveness.
I am hoping to get over to Europe for one last trip before the end of the year. I love those glorious capital cities. They are monuments to the 19th century peak of Western Civilization.
Capital controls will also be a necessary part of negative interest rates so, if you wish to get your money into US$s, then do so quickly. Nothing here should be construed as meaning that all will be hunky-dory in the US. It will not be; a way of life is finishing and it will be worldwide, but it will be with differing degrees of severity with some failing faster than others. The US will fail last.
One day, banks will take an extended ‘holiday’. From that day, whether they re-open or not, life will be forever changed.