Here is your runaway inflation
Zero interest rates means that you need infinite savings to earn an income.
Luke Setzer posted this link on "Rebirth of Reason" the salient point is this: "Yield Purchasing Power (YPP) shows how much you can buy, not with a dollar of cash, but with the earnings on a dollar of productive capital."
"... Clarence retired with $100,000 in 1979, and Larry retired with $1,000,000 in 2014. Clarence was able to earn 2/3 of the median income in interest on his savings. Larry was nowhere near that. He would need over $100 million to do the same. In 35 years, the YPP of a 3-month CD fell more than 1,000-fold."
"The collapse in YPP suggests an analogy to hyperinflation. Look at how much capital you need to support a middle class lifestyle. Measured in dollars, the dollar price of this capital is skyrocketing."
Luke Setzer posted this link on "Rebirth of Reason" the salient point is this: "Yield Purchasing Power (YPP) shows how much you can buy, not with a dollar of cash, but with the earnings on a dollar of productive capital."
"... Clarence retired with $100,000 in 1979, and Larry retired with $1,000,000 in 2014. Clarence was able to earn 2/3 of the median income in interest on his savings. Larry was nowhere near that. He would need over $100 million to do the same. In 35 years, the YPP of a 3-month CD fell more than 1,000-fold."
"The collapse in YPP suggests an analogy to hyperinflation. Look at how much capital you need to support a middle class lifestyle. Measured in dollars, the dollar price of this capital is skyrocketing."
In 1979 Clarence could afford to buy a rental property with relatively low overhead (taxes) and generate a low risk return. Larry has to pay insanely high prices for the property and insanely high taxes to carry it, resulting in rental rates that may soon exceed the market ability to pay, so he has much higher risk in that area, too.
The banksters and socialists (looters) have destroyed the ability to of the majority to be self reliant, and created a modern feudal culture of economic slavery.
We need to adjust for the fact that wages and prices were rising much faster in '79 than in 2014. OTOH Clarance at least at a positive real rate of return from hinterest. Larry had to have a riskier income portfolio of bonds and stocks with signficant yield.