Negative Rates, DB Bailout, Gold Prices… Q&A with Lynette Zang and Eric Griffin

ITM Trading, Released on 2/4/20

Slides and Sources:…

Question 1. Sean M: With the massive money printing and dollar’s weakening purchasing power, why would anyone want to be invested in equities (or any non-precious metals investment) since when you eventually sell, you will receive dollars that are weaker?
Question 2. Vijay M: if these China, Russia and India increase their gold reserve by 25% or more in the next 5 years, how would that effect the gold price?
Question 3. Jeffrey C: With all the overnight lending from the FED, who is legally on the hook for the loan and the interest rate? if all banks fold in a collapse, would the taxpayer be responsible to pay the Repo principal as well?
Question 4. Nathan M: Negative interest rates haven’t worked in Europe and Japan. Why would President Trump be advocating for negative rates? I believe it would only kick the can down the road and prolong the upcoming crises.
Question 5. Shaffer: Is it possible that American repos are being funneled to Deutsche Bank? As banks constantly do overnight transfers, is it possible they’re hiding in their books, the first foreign bank bailout?

Lynette Zang has held the position of Chief Market Analyst at ITM Trading since 2002. Ms. Zang has been in the markets on some level since 1964. Her mission is to convert financial noise into understandable language. She has been a banker, a stock broker and studied world currencies since 1987. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community in order to survive and thrive through the hyperinflation she sees in the near future.

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