"Equilibrium real interest rate"??? What a load of horseshit. Interest rates are low because if they raise them the entire world goes broke. They dropped them

"Equilibrium real interest rate"??? What a load of horseshit. Interest rates are low because if they raise them the entire world goes broke. They dropped them down in order to sell more and more debt. Now all the debt is sold. This is the result of globalization; there's only so much "good" debt to buy. With all individuals and governments in developed countries maxed out on their debts, the banking system is basically stuck. Economists dredge up techno baffle-gab like this to fool the public into thinking there's some complex mystery to the financial system that only quants can figure out. It's not that complicated. Declare debt amnesty, make all the banks suddenly smaller, and if you really want to prevent this kind of thing from happening again make currency speculation illegal. That's a good start.