Why a low interest rate in the financial system is not good in the long term

Ad Majorem.....

In Japan before, and even now, the interest rate is close to zero.  Ben Bernanke of the US keeps the interest rate in the US low, if only to stimulate the economy.

However in the recent post at WSD, they reported that a low interest climate is not good overall:

l.  If no one use the money, the banks hoard the cash and no one benefits;

2.  No one invests;  they rather use the low cost money.

3.  Companies invest in labor savings devices, so no jobs are created.

4.  In the long run, people do not save because they do not earn anything.

5.  Liquidity leaks out of the system;  there is a capital flight.  Those with cash will invest abroad or
elsewhere the yield is high.