This is really scary, part 2
The 3 month Treasury bill yield is almost zero. It’s at 0.03%. That’s a stunning sign at how much capital flowed into the safest security in the world. Investors want to be free of default risk, and their willing to accept no interest in exchange.
Forget all the talk worrying about inflation, or rising prices. With this kind of asset implosion, the real risk is deflation or falling prices. The slowing global economy will put additional pressure on companies, especially in Asia, to cut prices in an attempt to maintain sales. Corporate price cutting, in turn, will add to the downward deflationary pressure.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Give today and get our limited edition tote.