Rothschild reported on the global financial experiment
Published: 16.08.2016, 16:01
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For several years now the world lives in a financial experiment, which is implemented by Central banks “out of thin air” printed record amounts of cash, and interest rates fall to historic lows.
The corresponding statement in your letter to customers did Lord Jacob Rothschild, the head of the Fund RIT Capital Partners.
Central bankers continue, of course, the largest monetary experiment in the history of the world.
The consequences of these actions impossible to predict, he said.
To predict the impact of ultra-low rates and massive quantitative easing programmes impossible.
Pumping money into the system, according to Lord Rothschild, resulted in a rise in the value of shares (for example, three times in 2008 jumped US market) and government bonds (with negative rates is trading about 30% of such securities).
On this celebration of life remains a stranger in the real sector of the economy, although the heads of world Central Bank as its main purpose declare his recovery.
Almost all types of investments were raised due to the monetary tide. But economic growth remains anemic, the demand is weak, and in many developed countries are still mired in deflation.
Also the head of RIT Capital noted the deteriorating geopolitical situations on the planet: for many years will remain unresolved middle East conflict, and at the same time slows down the second largest economy in the world – the Chinese.
Rothschild in these circumstances, advice in the first place to take care of the preservation of capital seek opportunities to multiply must fall by the wayside.
