[vmception]

right, my point is that the Fed and central banks don't ask people why they do what they do. They just see "ah they are still hoarding dollars, make it worth less to force them to want to grow it on their own!" In negative interest rate environments, people are still willing to pay the government for the privilege of not investing in overvalued assets or random entrepreneurs.

> Interest rates drop on their own. It is only natural. Less borrowers, more lenders. Interest rates can't go up in such an environment.

I don't disagree with this without elaboration. The primary driving force of interest rates dropping are the central bank's actions, as they are the biggest whale in the market, they buy the benchmark bonds which forces those bond yields lower as these are inversely correlated. Everything priced based on those yields drops lower too. The "yields based on perceived risk" idea is completely broken right now, as nothing is properly risk adjusted, ie the chance of losing all your money is greater than the ROI for a lot of assets. Your supply and demand model works but only if you replace the market participants with the central banks being the universe sized lender.

The only thing that I would consider natural about interest rates is that risks are reduced as society progresses (in its current path). Like, the stability of human society, the lowered geopolitical risks, the larger economic unions and assets to monetize, the maturation of the market.