U.S. Downturn Could Bring Negative Treasury Yields, Says Pimco's Fels

The video discusses the potential for negative yields in the US, driven by economic downturns and central bank actions. It explores the role of central banks in responding to global trends, such as a savings glut, and the impact of fiscal policy on negative rates. The demand for safe assets is highlighted, with central banks acting as market makers. The discussion extends to global demand for safe assets, particularly from emerging economies, and the potential for increased fiscal policy. Germany's cultural resistance to debt and its implications for fiscal policy are also examined.

What factors could lead to negative yields in the US according to the discussion?

How do central banks respond to fundamental forces in the economy?

What is the significance of a global saving glut mentioned in the text?

What role does fiscal policy play in countering the global saving glut?

How does the demand for safe assets influence government debt levels?

What cultural factors in Germany affect their fiscal policy decisions?

What might trigger a change in Germany's approach to fiscal policy?