February 24, 2020

Cutting rates is bringing us closer to ‘the greatest amount of debt’ in human history – RT’s Boom Bust

“In August we saw that we were at $17 trillion negative yielding global debt… The IMF is warning that if we reach $19 trillion, which is not there yet but pretty close, we will be in the greatest amount of debt that human history has ever seen,” RT correspondent Sara Montes de Oca said, reporting from the International Monetary Fund (IMF) meetings in Washington, DC.

The situation is even closer as central banks are cutting rates worldwide, the correspondent said, adding that further decreasing can only “dig a deeper hole.”

“We’ve seen worldwide certain countries cut federal rates here in the United States as well as China and India. The Federal Reserve has cut rates here in the US twice this year already,” she reported. “With an upcoming meeting in two weeks in October, there could be another possible cut, and then another possible cut in December. So we’re looking at at least one more federal rate cut which will again dig us into this deeper hole.”

Meanwhile, US President Donald Trump has been calling for even larger cuts. He called the latest move by the Fed a “failure,” after it cut the benchmark interest rate by 25 basis points for the second time since 2008 in September.

Also on rt.com US Fed ‘boneheads’ should cut interest rates to zero or less – Trump

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/471312-cutting-rates-greatest-debt/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

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