Interview with Leo Kolivakis, Publisher and Editor of the Web Site “PensionPulse.blogspot.com“. Mr. Kolivakis is an independent senior economist and pension and investment analyst with years of experience working on the buy and sell-side. 

Leo Kolivakis believes we have entered a period of long deflation due to six major structural issues:

• The global jobs crisis
• Aging demographics
• The global pension crisis
• Rising inequality
• Technological Advances
• High and unsustainable debt all over the world

Each of these structural factors is significantly contributing to global deflation.Together they are a domino effect, exacerbating deflationary headwinds in the world.  They are causing rates to remain ultra low and will continue to for years to come .

Rising Inequality

What is not understood and fully appreciated by economists is how the dramatic rise in inequality brought on by low interest rates is limiting aggregate demand growth.

Investing in an Era of Low Aggregate Demand

Bond yields are going lower to negative and you must prepare for a lower returns, for a very long time

Question:  If rates remain ultra low, won’t that be good for residential and commercial real estate?

“Not necessarily. If deflation becomes entrenched, low rates will exacerbate debt and increase unemployment at the worst possible time. It can easily spiral into a debt deflation crisis and you’ll see rising vacancy rates and/ or declining rental rates. In this environment, real estate is the asset class that makes me most nervous.”

But it’s not just real estate that will suffer if deflation becomes more entrenched.

“All asset classes will exhibit a prolonged perio

Video Length: 00:44:23