The U Shape of Interest Rates

When a civilization establishes itself, first of all, there will be more risk because it's not secure and there will be relatively few savings. So the moment you have middlemen, bankers lending money, then you're going to get interest rates coming down. Then when a civilization is established and secure, then you get the sort of bottom of the U shape. And then as it collapses, well then, you know, then you got more risk because the civilization is on its last legs - that period is indeterminate. We've been living through the lowest interest rates in this year's,. You do see a bit of a U shape is not really comforting.

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