The Essence Of Subzero Rates—It’s About Speculative Capital Gains, Not Safe Yields

These dynamics gave us the current state of the world. Investors cheer the stupidity of NIRP because they yield profits. The more ZIRP, NIRP, and QE (quantitative easing) the more capital gains can be reaped despite no detectable economic benefits produced. Hence, investors cheer the nonsensical which policymakers mistake as as endorsements. A self-reflective loop is established.