To claim you are for the middle class and the proverbial working man and woman, and push for ever lower interest rates is the height of hypocrisy.
Not only seniors, but pension funds, insurance companies, even Social Security (those FICA taxes are ‘invested’ in Treasuries) depend on the cash flow of risk-free interest.
Ever lower rates starve the middle class and retiring class, and only serve to create asset bubbles.
Negative rates are insane.
> Ever lower rates starve the middle class and retiring class, and only serve to create asset bubbles. <
Very true. But when rates are low, governments can borrow more, and put off the day when they must go bankrupt. I suspect this is at least part of the motivation for keeping rates low.
They don’t care about saving and investing. The current shell game is built on everyone spending money as fast as they can get it or borrow it, to create “economic activity” which is supposed to serve as a stand-in for actual productivity. If we stop spending and start saving, then we won’t generate enough activity to keep borrowing, and we don’t have the money to pay the debts we have accumulated, so it would all collapse.
It’s like when Wile E. Coyote is running very fast and runs off the cliff. As long as he keeps running, he is okay, but as soon as he notices he is running on thin air and stops, he falls into the ravine.