Australia Gets Paid to Borrow in First Sale at Negative Yields

Hmmm... interesting , so ask yourselves why don,t governments invest in the stock market 15% yield then? Instead of issuing negative government bonds?
The answer is my friends, that via related party transactions the funders of those bonds have done just that ,it’s off balance sheet, and not reported officially , just a matter of joining the dots !
Think about it , it is very easy to do , a CB or Reserve Bank chummies up with a private (secret) investor (or consortium in NZ's case ) and even if both parties goes halves in the swap /profits, it’s a win win all round, the mirror shadow (destination) side of the of the bond issue transaction is hidden from public view.
Things aren’t as they seem !
Or more to the point , what the public disclosures are really concealing.
(its called the "Shadow Banking System" )

Its a screwed world. Annual increase in DOW 15% (even in Covid times) and negative interest all over the place!

Agree, although I dont believe there is an actual agreement (secret or not) but by flooding the financial institutions with such much money they dont know what use for the money automatically flow to the markets. Question is if this excess money will ever be paid back. I am starting doubt (:

But my whole point is this -how do you know whether the CB or reserve banks is actually 'borrowing' on the international market ?
its not to earn 0.25% interest ( the wholesale rate) inflation has nothing to do with it! ***(except for old school economists)
Take RBNZ, they issue paper - a bill , bond , some sort pf promissory note this can funded using at least two ways
1. create digital currency ( old equivalent of printing money ) on-lent to Banks, and /or
2. they can go to a consortium of offshore investors to advance them the money for what ever the term is

that consortium, with the off balance sheet agreement with RBNZ then goes and invests that SAME money in the stock / equities/ market - the money never physically ( or electronicly ) comes to NZ - do you understand ?
it is a mirror (shadow) accounting ( with the profit shares often not even being repatriated but used to create/bolster off-shore currency reserves)
instead of the consortiums, sometimes the big four Aussie banks (or other offshore banks ) may be approached to do the same deal.
Originally this money was intended to be on-lent to businesses or to build Govt infrastructure, but in this market that rarely happens because the banks realized they could make more money from stock speculation etc... it has been too risky to lend to businesses for some years now - in NZ the actual interest rate that businesses are charged (if they are at all successful in securing loans) is close to 10% which is criminal when the banks are only "paying" 0.25% for their cost of funds. C-19 has actually made this situation worse for businesses.

The deeper you go down the rabbit hole, the more you will be dismayed.
if any of you know Merchant bankers/ Hedge fund managers , consortium financiers please ask them to verify all this - you will be surprised.

This is the main reason why all the major stock markets have gone through the roof since the GFC and will continue to do so as long as the money supply is being inflated

the public are fed such B$ !

*** except that real inflation in the NZ is not being reported accurately , in NZ it is largely CPI based and excludes ALL the Major asset classes - which is one of the major contributing factors as to why NZ has rampant house price escalation - hello ? the sheeple are not really that stupid are they ?

Sooooo

Morons get paper trash and pay trash money to duummm govamaaant??


I hold Bitcoin...

Interesting; was not aware of negative rates in NZ at the moment...

Inflation in NZ is about 1.4%. The official cash rate is 0.25%, which is sort of/loosely between the RB and the banks. Has very little to do with retail rates.

I know that's not what the media/bloomberg means (also they are talking about how much it costs the RBA - or whatever central bank - to borrow on international markets, and this never makes the 6pm news), but in reality "real" interest rates are generally less than zero as long as they are lower than the inflation rate.

There used to be bonds issued called something like CPI bonds, which was linked to the real interest rate. I digress.