Interest rates at almost zero % for the last 7 years have not driven growth, nor has the billions in QE. They did save the banks, but now the lower they go and the longer they stay the more they risk destroying the banks again. And the world is stuck in a beggar thy neighbor spiral as countries try n reduce the strength of their currency's to compete.
It's time for a change.
Two wrongs don't make a right, the first wrong was the financial crisis, the second was the answer to it, do you remember in 2008 when they compared QE as the equivalent as setting of a nuclear bomb? Now we print billions with the wave of a hand, it's time to face the music.
But how can we do that without massive problems for our economies? Well first there needs to be some acting in unison, at least between the US and Europe, who should lead the way, second a plan to bring rates to 5% over two-three years should be setup on, no matter the pain ,and finally there has to be support, infrastructure, investments in education and training as they do it, and also, as a wild card a reduction in petrol duty, a tax that adds cost to every business, product, service and affects every household, so if rates rise there can be some offset elsewhere. It's a risky plan, but it's a plan at least and that's more than we have at the moment on this road to oblivion...