---
title: One Cannot Operate A Capitalist System If The State Can Borrow At A Negative Cost
description: One Cannot Operate A Capitalist System If The State Can Borrow At A Negative Cost - A Blog Post by Global View Partner & CFP, Adam Wiles
---

[Global View Investment Blog](https://blog.globalviewinv.com)

# [One Cannot Operate A Capitalist System If The State Can Borrow At A Negative Cost](https://blog.globalviewinv.com/2012/07/one-cannot-operate-a-capitalist-system-if-the-state-can-borrow-at-a-negative-cost)

 Written by [Adam Wiles](https://blog.globalviewinv.com/author/adam-wiles) | 7/25/12, 2:00 PM

This post from Charles Gave, and sourced from Zero Hedge, offers interesting insight on two potential important ideas:

- Highlights some of the risk that the Fed is taking by operating at Negative Real Interest rates for an extended period of time.
- Interestingly, Gave connects the negative real interest rates, the status of the US dollars as the world’s reserve currency, and explains that this relationship is responsible for the extreme outperformance of US Dollar based assets compared with other assets in the world.

[View Full Article](http://www.zerohedge.com/news/one-cannot-operate-capitalist-system-if-state-can-borrow-negative-cost)

[View full post](https://blog.globalviewinv.com/2012/07/one-cannot-operate-a-capitalist-system-if-the-state-can-borrow-at-a-negative-cost)

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