Posted a few days late.
My Saturday Night Rant
Central banks in major economic regions Japan, Europe and USA have engineered the groundwork for the next worldwide financial crisis with their zero/negative rate interest policies.
One area affected with multiyear quantitative easing (printing billions of dollars of money from nothing) and zero/negative interest rate policies are creating huge investment management problems for individuals and pension plans and their fixed income planning models based on receiving a normal 4-6% annual return.
The attached chart shows how absurd central bank policies have become. Now with trillions of dollars of bonds worldwide yielding nothing. Actually the holders of bonds pay to own them in their portfolios.
My wife is already adjusting to the effects of these Central Bank zero interest policies with adjustments to her defined benefits pension income. Current changes are centered around increased premium deductions for health care coverage along with reduced coverage limits.
Japan Central Bankers thought they could reduce interest rate based income to zero and below and it would encourage their population to spend more and generate economic growth.
WRONG. Their ageing population has responded by spending less and hording their savings to make them last longer in the absence of not receiving any interest income on their fixed income investments.
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