The Age of Negative or Zero Interest Rates

 Sure, the federal reserve has been hiking rates, albeit slowly, not steadily and into a weakening economy - for the first time since 1937, but to what end? Many believe the purpose of raising is simply to get to 3.25 or 3.50 % in time to just slash them back to zero during the next recession. For many millennials, the last recession was during their high school years or college and many of us can't remember what a "normal" interest rate actually is. 

 So, if we are to get back to zero at some point, what does this mean for our future years, or retirement?  Raising rates back to normal will surely cause the very recession that the fed is trying to prepare for and they may be back at zero before we ever get near 3%. 

  Those of us lucky enough to have a defined pension know that most funds (public and private) have to yield 7-8% annually to even have a glimmer of hope in fulfilling the promises made in these plans. Where are these funds getting this yield? The answer is that they're not, or they are by investing in very risky assets. So pensions are at risk either way. Those not lucky enough for pensions will naturally be those "savers," hoping to one day retire with that nest egg. The question is, how can one even save in an environment where you get a fraction of 1% interest in any traditional savings/CD account ? The answer is that there will be no actual savings, just post tax capital eaten away by years of inflation. 

  Where can millennials invest to get a good yield? Or prepare to retire? Pensions are not common and those that exist are mostly insolvent, or on their way. Social security is dying under the weight of baby boomers and won't survive for long. Traditional saving is a fools errand. What's left? We have an over priced stock market, a real estate market that is clearly over valued and a bond market ready to crack.

 Most millennials are entering a work force with low paying jobs, college debt and a lack of options with respect to safely investing if they are lucky enough to have capital to invest.

 Negative interest rates financially endanger an entire generation that has yet to expirience a meaningful recession, and who are already working for depressed wages. Many are trying to pay back student loans at 6-8% interest, while the money they manage to save cannot safely earn 1%. 

 Our generation needs bold ideas if we ever hope to strive, or even survive in adulthood and beyond. Please comment and discuss.