We are all zombies now

For decades, all G7 nations and more besides have prevented the creative destruction upon which economic progress depends. Whole countries are now zombified.

The consequence is soaring, unproductive debt both in public and private sectors. In the past, debt levels have been low enough for central banks to force through further interest rate suppression to perpetuate malinvestments. That is no longer possible, with G7 government debt to GDP ratios commonly exceeding 100%. This article argues that interest rates will not fall materially, if at all, but will continue to rise.