The global bond glut: a doom loop of financial repression | Metals Mine

  • The global bond glut: a doom loop of financial repression

    From omfif.org

    In 2005, then-US Federal Reserve Chair Ben Bernanke described the phenomenon of a ‘global savings glut’ to outline a world awash with excess capital. High saving rates in trade surplus and oil-exporting countries were not matched with equivalent domestic investment opportunities, prompting these economies to channel excess funds into capital-importing countries – particularly the US. This created a persistent decline in real interest rates, fed global financial imbalances and helped inflate asset bubbles that would burst in the 2008 financial crisis. Two decades on, the global economy is experiencing an inverse ... (full story)

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