Are you confused about where interest rates are heading? If so, you are not alone. I don’t think central bankers know themselves what they should do about interest rates. They ought to. But they have tied themselves up in knots.

We do know that rates can’t possibly stay where they are, forever. It just doesn’t make any sense if they do. If the cost of money remains low, then there is little reason for asset prices to ever come down.

Is that really what we want? Or more importantly, is that what central bankers really want? Do they want investors to believe that there is no alternative to holding any asset, regardless of their perceived risks?

Could that be the reason why cryptocurrencies are enjoying their day in the sun? After all, if investors are earning nothing on their cash deposits, what could be so wrong with having a punt on some cryptos?