I think near zero rates is the new norm. If rates went back to historical averages, governments would be screwed. Debt as a percent of GDP is at record levels. The developed world would drown trying to pay interest on government debt. That or you’d see money devalued so rapidly that it’d cause massive destabilization of the world economy. We’re at 8 years of ZIRP or near ZIRP, and the world economy is still barely growing.
Corporate balance sheets are full of debt too. Most companies can’t payoff the debt, so they depend on issuing new debt when existing debt matures. Profit margins are already around 8% average. That’d take a huge hit if interest rates returned to normal.
I think this will end epically bad with money losing massive amounts of value at some point. Anyone with hard assets and debt will be a winner.