Why will interest rates remain low? As I shared previously, the interest rate will stay low for a long time due to 2 reasons.

1. A debt laden world

The world’s leading financial centre, US, has a government that is in debt of over USD$27 trillion. Furthermore, the amount of debt is showing no signs of slowing its growth. Joe Biden has been elected as President and is leading the Democrats. They have decided to increase stimulus for the people while also increasing stimulus for the economy. To do so, they must borrow money from other countries as they currently do not have any savings. In borrowing money, US will also owe other countries interest. Hence, to minimise the interest expense that is incurred, US will have to keep the interest rates low.

2. A large amount of unfunded liabilities

The balance states that unfunded liabilities are debt obligations that have insufficient funds set aside to pay them....