Western Central bankers are leading “the biggest experiment in monetary policy” the story with unpredictable consequences, Lord Rothschild writes, warning that the world is now in “uncharted waters”.

The problem is getting ready for the global economy, with unpredictable consequences, RIT Capital Partners Chairman Lord Rothschild warns his investors-annual trends, criticizing the central bankers for what it called “the largest monetary policy experiment in world history. ”

“The six months under review have seen bankers continue what is certainly the biggest monetary policy experiment in world history,” Jacob Rothschild, a British investment banker and member of the powerful family of bankers Rothschild, stresses.

“We are in uncharted waters and it is impossible to foresee the unintended consequences of very low interest rates, with about 30% global debt to negative returns, combined with quantitative easing on a massive scale”, stresses.

Rothschild has drawn attention to the fact that, Despite the policy of having caused the rapid rise of stock markets, This growth cannot last forever as the real sector remains anemic with weak demand and deflation in many developed countries.

Meanwhile, the geopolitical situation is not always easy: China's economic growth has slowed, the atmosphere of the elections in the United States remains fraught and the Middle East conflict continues to rage.

Germany, France and the United States have been subject to terrorist attacks.

To complicate things even further the United Kingdom voted to leave the EU.

“In times like these, preservation of capital in real terms continues to be the most important goal as any in the management of the assets of your company”, stresses Lord Rothschild.

To address emerging risks, RIT Capital Partners has taken a number of measures.

It is interesting to note that, Rothschild reported that is shifting from Sterling (in anticipation of Brexit) and the US dollar to gold and “other currencies”.

“Our significant position of the United States dollar is now somewhat reduced, After the rise of the dollar, We saw good opportunities in other currencies, as well as gold, the second reflecting our concerns about monetary policy and never fall in real yields,” Lord Jacob Rothschild explains.

By the end of June RIT Capital Partners increased their activity in gold and precious metals at 8%.

The Western central bankers are conducting "the greatest experiment in monetary policy" history with consequences impossible to predict, Lord Rothschild writes, warning that the world is now in "uncharted waters."

Trouble is brewing for the global economy with the consequences impossible to predict, RIT Capital Partners Chairman Lord Rothschild warns in his semi-annual addressto investors, criticizing central bankers for what he called “the greatest experiment in monetary policy in the history of the world.”

“The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world,” Jacob Rothschild, a British investment banker and a member of the prominent Rothschild banking family, underscores.

“We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale,” he stresses.

Rothschild has called attention to the fact that despite the policy having resulted in the rapid rise of stock markets, this growth cannot last forever as the real sector remains anemic with weak demand and deflation in many developed countries.

Meanwhile, the geopolitical situation is not getting easier: China’s economic growth has slowed down, the election atmosphere in the US remains fraught and the conflict in the Middle East continues to rage on. Germany, France and the US have been subjected to terrorist attacks. To complicate matters even further the UK voted to leave the EU.

“In times like these, preservation of capital in real terms continues to be as important an objective as any in the management of your Company’s assets,” Lord Rothschild emphasizes.

To tackle emerging risks, RIT Capital Partners has adopted a series of measures.

Interestingly enough, Rothschild has signaled that he is shifting from sterling (in anticipation of Brexit) and the US dollar to gold and “other currencies.”

“Our significant US Dollar position has now been somewhat reduced as, following the Dollar’s rise, we saw interesting opportunities in other currencies as well as gold, the latter reflecting our concerns about monetary policy and ever declining real yields,” Lord Jacob Rothschild explains.

By the end of June RIT Capital Partners increased their gold and precious metal assets to 8%.

Rosalba SELLA