Archives

Germany Says “Danke” to Free Money

By Chris Lowe, Editor-at-Large on April 17, 2015

One lucky country enjoying free money is Germany.

With the European Central Bank committed to buying up to €1 trillion ($1.1 trillion) in European bonds before September 2016, the German government now pays lenders interest of less than half of one percentage point a year for 30-year loans.

And Berlin pays lenders just 0.08% a year to compensate them for parting with their cash for 10 years.

Inflation is forecast to come in at an annual rate of just 0.1% this year in the euro zone.

But it’s expected to pick up 1.2% in 2016 – making it a near certainty that investors are locking in guaranteed losses on their loans after you account for inflation.

P.S. Have you picked up your discounted copy of Get What’s Yours, Dr. Laurence Kotlikoff’s bestselling guide to maxing out your Social Security benefits? If not, you could be missing out on an extra $1,620 in monthly income. Discover how to claim back what’s yours here.

©  Bonner & Partners, 55 NE 5th Avenue Suite 100, Delray Beach, FL 33483, USA. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from the publisher.

Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation – we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated and there is no obligation to update any such information.

Investments recommended in our publications should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. You shouldn't make any financial decision based solely on what you read here. 

Bonner & Partners writers and publications do not take compensation in any form for covering those securities or commodities.

Bonner & Partners expressly forbids its writers from owning or having a financial interest in any security that they recommend to their readers. Furthermore, all other employees and agents of Bonner & Partners and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a printed publication is mailed.