Eddie Hobbs: Your savings are collateral damage in the new rules of the game

A decade of negative interest rates will have a profound impact on your money power

'Policymakers know that pushing up rates prematurely will tip over the global economy into depression, that’s why they cannot do it.' Picture: Pexels

There was never going to be a V-shaped recovery. It was a myth for cosy cocooners. We are entering a decade, maybe longer, of negative real interest rates with a profound impact on money power. It is climate change for cash deposits.

Yesterday’s budget is a tactic, part of the response phase of the global pandemic. Next up, in 2021 comes the Flood and Fractures phase as the collateral impact becomes clear, before the real recovery phase can begin in a reshaped world thereafter. Not everything can be saved and the idea that there is unlimited borrowing capacity to do so is as fanciful as rewriting Game of Thrones with Nanny McPhee in power at Kings Landing.