One response mentioned, “zero is just a number” not true it is an inflection point but you need to use a real scale. Real inflation adjusted U.S. Treasury rates are hovering around zero. The real zero risk rate of return is less than zero, how else could the middlemen make money.

Imaging an environment where currency appreciated, negative inflation, deflation. How negative would bond yields go? Would cost of living adjustments of pay and benefits be reductions?

Aren’t we almost to the point where almost all qualified borrowers don’t want to borrow more.

TEK