What is the problem with the world?
Seven years after the financial crisis, central banks are still keeping interest rates at historically low levels. Low interest rates help finance governments' debt and lower funding costs, as well as support growth. But such policy actions cause financial repression. This comes at a substantial cost for both households and long-term investors such as insurance companies and pension funds, according to a new Swiss Re report Financial repression: The unintended consequences.With continued increases in bond prices, expensive stocks and relatively low volatility, the impact of financial repression on markets is undisputable. Meanwhile, the impact of foregone interest income for households and long-term investors has become substantial: in the US alone, savers have lost about USD 470 billion in interest rate income (net) since the financial crisis (2008-2013).
Current high levels of financial repression create significant costs and lower long-term investors' ability to channel funds into the real economy, a new Swiss Re study shows
26 March 2015, Zurich
There are many problems in the World
excess supply of everything
Automation
Role of man in an automated world
People who learned things that are useless
Everything that is going to be invented is going to be invented in some big countries
The distance between rich & poor will widen
etc...
But for the Economy the zero rates are a big drag on demand. savers don't make enough money and so they don't spend
i see deflation.
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