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Opinion

How Monetary Policy Undermined American Resilience

A legacy of artificially low interest rates is not just the death of savings, but a forced buying into the perpetual growth machine of financial asset prices.

By Nathaniel Whittemore
AccessTimeIconSep 10, 2020 at 7:00 p.m. UTC
Updated Sep 14, 2021 at 9:54 a.m. UTC
AccessTimeIconSep 10, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:54 a.m. UTC
(Ja_inter/Getty Images)
(Ja_inter/Getty Images)
AccessTimeIconSep 10, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:54 a.m. UTC

A legacy of artificially low interest rates is not just the death of savings, but a forced buying into the perpetual growth machine of financial asset prices.

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

This episode is sponsored by Crypto.com, Bitstamp and Nexo.io.

Today on the Brief:

  • Jobless claims slightly exceed expectations at 884,000
  • ECB keeps policy unchained; euro rises versus dollar 
  • Survey: What’s the right way to understand the business and market cycle in the U.S. today? 

Our main discussion: interest rates and the undermining of American resilience.

In this discussion, NLW looks at a number of artifacts of the low interest rate world, including:

  • Increasing cost of child care 
  • Declining share of total net worth held by bottom 50% 
  • New startups using lottery tactics to incentivize savers 

See also: ‘Absolute Raging Mania’: Famed Investor Druckenmiller Thinks 10% Inflation Is Possible

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

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