“The Tragedy of Low Interest Rates”

Interest rates in the U.S. will remain artificially and abnormally low for the foreseeable future, likely for at least the next 5 years, and probably longer. You will hear a variety of reasons proposed, including to support the economy and create jobs after the COVID crisis, boost the stock market, encourage affordable housing, and whatever else. But the real reason is to bail out debtors, the largest of which is the U.S. government. The end result of the suppression of interest rates by the central banks represents a transfer of wealth from thrifty savers like you, to profligate, undisciplined spenders, allowing them to live beyond their means.

Source: The American Journal of Cardiology - January 15, 2021 Category: Cardiology Authors: Robert M. Doroghazi Source Type: research