The first time in 5000 years that interest rates have gone to

>>1552439
Interest and service charges on 100 trillion of global debt are about to eat the principle, that would imply complete meltdown of the system of usury. It's either zero to negative interest rates or WW3.

>>1552439

Interest rates seem to be negatively correlated with economic growth, going by that chart.

It is due to a lack of demand for credit by companies. The wages of middle class earners have stagnated for decades, so there's no incentive for companies to supply more, as there is no demand.

>>1552439
How the fuck do they have data from 3000 BC?

>>1552508
https://www.armstrongeconomics.com/research/a-brief-history-of-world-credit-interest-rates/3000-b-c-500-a-d-the-ancient-economy/
> A chap named Hammurabi, King of the first dynasty of Babylon, authored the earliest known formal laws around 1800 B.C. within which we find the first recorded attempt to regulate interest rates

>>1552508
Because everyone knows 3000BC had the highest interest rates known to mankind to combat the triple digit inflation, caused from the increased productivity from the invention of the wheel.

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>>1552528
Jesus Christ my sides are in orbit
Fucking austrians man

>>1552439

The world has become terrible enough to make economic investment (temporarily) infeasible. All the frontiers are gone, technology has stagnated, consumption is dying, trade is reversing, etc. Hence, the interest rates have to be at zero to actually entice people to invest at all. (Or negative interest to punish savers and force investment.)

Last time this happened was the 30's, which led to you know what. And by 2035, when this chart ends, the situation will have resolved itself leading to normal interest.

>>1552528
TOP KEK

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>>1552612
Or maybe it's the first time in history we've opened ourselves up to a point where goods can literally be manufactured anywhere in the world and you're seeing real competition, which is pushing down prices.

This is the first long term period of unhindered prosperity in a legitimate capitalist interest rate model framework. The only time we've been in a period like this would probably have been under the Romans and even then, they only had parts of Europe, Asia, and Africa, and cumbersome interest rate regulations on top of that to prevent "usury."

You end up with a wartime period like under Bush and you've had empires get handed over like the Brits to the Americans, but you haven't had anything along the lines of a Roman Empire or Dark Ages in god knows how many years- probably since the Thirty Years War.

The Great Depression is just going to be a statistic in 500 years. The 2008 recession will be remembered as fondly as the 14th century banking crisis.

>>1552612
>The world has become terrible enough to make economic investment (temporarily) infeasible.

Explain how, please.
The world of 1950 wasn't a much better place, it had much more rapid growth nonetheless.

>>1552612
Actually, my apologies. Didn't read the ending of that post.

Overall good analysis. Sorry for jumping to conclusions.

>>1552640
>the world of 1950
you had booming markets in post-war Europe, which made post-war America comfy, and you didn't have everyone undercutting each other with cheaper and cheaper labor (depressing prices aka creating deflation)

>What is the catch-up effect/diminishing marginal returns

>>1552612
>All the frontiers are gone
t. small-minded idiot

>>1552439
20% in 3000bc that must have been some nice gains in my savings plus account

0% interest destroys fungibility. 0%=not a currency anymore

>>1552528
gilgamesh and enkidu slew primal yellen and she was dormant for 5000 years before her return

>>1552868
I want to subscribe to your newsletter.

>>1552642

You are right, the deflationary pressures created by globalization may be damaging for growth. Yet the wage stagnation phenomenon started way back, under Reagan.

>>1552508
The first written human records were taxes.

>>1552644
Nicely said, fellow (((Internationalist)))

Shalom.

t. American