Low interest or null interest policy makes the live unbearable for the young generation, here is what can be done!
I really hate to say it... the central banks with their null interest rate policy (NIRP) makes the live really unbearable and devalues labor. The young generation which does not inherit houses and so on, have a tough live.
You need a place to sleep and live. With NIRP all the investable capital flows into real estate. So in the end the millenial generation has no way to save for a house or even rent a house as rents go up in tandem...
If the young generation would learn that in school they would hit the streets... if they also learned that the consequence would be living for ether in their parents' basement or both partners having to work all day long and even then not being able to have an own family with children, as those are too expensive as well... You cannot live in a 500 square-feet home with 5 persons. No girl would want to be a mother in that situation.
What do you get out of this? Japan!
Have you ever seen those zombies working until they are 95 years old there? They have to work, as their retirement is only 500 bucks a month... Imagine living with this kind of money in Tokyo... that is really shitty and I do not know how they do it. This is shear and utter horror. No family and working until you drop dead in the streets...
They have been living the horrors of NIRP for 22 years now... it is shocking!
What should a young person do in my eyes?
Look for a place with high interest... there are not many countries out there who have it. But if they have for example a 15% interest rate, a home is being paid off after about 10-15 years work.
If the interest goes low and in the western world dramatically up, you can switch back to the western world. Sell your home in a low interest environment and go to a place with high interest.
The same counts if you are able to work remotely. Live somewhere where the interest rate is high. It will benefit you if you want to buy a home.
What do you think?
Disclaimer: No investment advice, just my opinion.
you reviewed the situation very well. low interest or null interest means a shit. why we invest for? it's a pure scam from banks, because, they give loans & earn well. but they didn't provide an interest to the people who actually lend money. impressive post @mexbit
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I absolutely agree with you, now it is amazingly troublesome for adolescents, especially while influencing a family and paying little respect to what we to look like at credit expenses, and they are clearly fundamental, I think in each state there should be exceptional undertakings for youths with a unique financing cost and everything should be on the regulatory level. This will offer quality to make and collect life in your country, not to spend your youth filling in as a guest expert. Thankful to you @mexbit
Yeah... the whole "save up for something" disappears....
Such a great experience person . thanks for the information of Causes of State Bank Interest Rates,
@mexbit
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you always talk about the issues in the society that most of us fail to recognize even :)
The media always tells how greatful we have to be for the NIRP. It seems like they do not want to show all the shitty effects it has... Glad you liked my point of view!
@mexbit
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I totally concur with you, now it is extremely troublesome for youngsters, particularly while making a family and regardless of what we look like at loan costs, and they are obviously essential, I think in each state there ought to be unique projects for youngsters with a special financing cost and everything ought to be on the administrative level. This will offer quality to create and assemble life in your nation, not to spend your childhood filling in as a visitor specialist. Much obliged to you @mexbit
I think the free market should determine interest rates... 0% interest rates only benefit older people who already have assets...
THANKS FOR YOU HELPFUL REPLY..........jpg)
India used to have high interest rates a few years back but in last 5 years they have screwed it up. High interest rates around 10 are good for economy too.
Absolutely, interest rates used to be an indicator of economic cycles. Through ages it was around 5% when a free market still existed....
@mexbit, Absolutely young generation suffering from bank interest rate. Its result they stay live without home and no encouragement their life. All are going only one way. No more multiple way. It would be low development any countries. As my country interest rate currently in 18.9% level. Its too high percentage for low-income persons.
However thanks for the details.
Upvote & Resteem your post.
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You gave really important information @mexibit. Seriously low interest rate giving more opportunities to buying fixed assets.
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the young generation is quite smart now they will adopt to the new ways of building
I think the young generation is pretty stupid.... they have no patience to work for some future goals... everything has to be instant. And NIRP plays into that.
its the glamour that has hit everyone's life but there are still some who are working hard on the future from today