Just realized something, the FED doesn't want growth, growth implies inflation and higher rates, which will collapse system. They want deflation at a measured pace down. Even though they say otherwise. All governments with unsustainable spending need zero percent rates at bare minimum.
This statement is beyond absurd. And civics lesson here, the Fed is a private institution. They are NOT the government.
Inefficient and non productive populations with ever growing unsustainable liabilities, can only be supported by perpetual debt printing. Perpetual debt printing can only be sustained as interest rates get driven to zero over long periods of time. Just think about it, if you have a productive population you can generate enough GDP to pay for the things that the population needs. Basically we are turning into a welfare state with ever increasing proportions of the population who contribute minimally to GDP. If the population starts being productive, interest rates start bumping up triggering a crisis situation as bond values cascade down. The current evolving situation to zero interest rates is the best solution since its a interest free loan for all the social programs and defense spending. Its a hole dug that can't be escaped, if you try to jump out of the hole, you have runaway inflation.
The Fed does not "print" debt. The US Treasury does. The Fed "monetizes" debt. Try to understand the difference because it is not trivial. Also as interest rates go negative, the demand for debt is going to decrease, not increase. Because the opportunity cost of holding that debt goes up. Again, this is not trivial, it's really important to understand the math and economics behind money before you make these arguments.
All of what you said is known, just playing out different scenarios and what has already happened in other countries. Basically the message is we are headed to zero because of non productive portion of our population. Thats all I'm trying to get at. Non productive relative to the quality of life enjoyed.
I don't see this connection. First of all, market rates are not even remotely close to zero. In most emerging countries they are actually quite high. Even in the US, a majority of the population pays over 10% for interest on items related to consumption. And what we are losing from productivity from the lower half of our population is more then offset by the increase in productivity from the upper half. In fact, the increase in productivity is partly the reason why labor has taken such a strong hit in the middle to lower middle class. This technological transformation will only get worse. Japan is one of the most efficient countries in the world. Their negative rates has nothing to do with low productivity. And I have no idea where quality of life fits into this conversation. India has some of the high rates in the world with one of the lowest quality of life imaginable. If I had to choose between Japan or India to live I take Japan walking away.
yes it's all playing out. retail is heavily short equities and oil. watch as it unfolds as per my post above before the fact. Why is the market going up on nothing, it's all written in my above post, that's the 'why'. I have not spelled it out exactly as it would be foolish to do so. Prices are being heavily manipulated imo. This is all about wealth transfer and we are just getting started.