[…] or negative interest rates are doing the opposite of what was expected of them because, if growth is muted and risk-free […]

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When all these low (or negative) interest rates finally have the intended effect, namely to change the public's perception of the financial situation, resulting in increased confidence and spending, it will be impossible to halt the avalanche. As the psychology of entire economies (nations) switches they won't be able to raise interest rates fast enough to stop the spending in time, which is likely to result in runaway hyper-inflation. Capitalism may have run it's course, as the currency that underpins the world's financial markets, and has had a monopoly on oil purchasing (USD,) was de-coupled from physical gold reserves decades ago. Given much of US national and household debt is held overseas, there seems to be only ever-increasing odds that this will come home to roost and the effects will be catastrophic. Money, why don't you do a piece on the effects of fiat currency creation being controlled by private entities across the globe?

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[…] Reserve Bank this month dropped the official cash rate by 0.25% to 1.5%, a new low. This low-rate environment is the ideal time to review your investments to ensure you're on a […]

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