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If the ECB lowers interest rates to around 1% all three major economies (i.e. USA, Euro land and Japan) will have very low interest rates. As long as economic growth does not pick up interest rates are likely to stay low. And it would appear that economic growth is not going to pick up anytime soon.
This very low interest rate environment has been created by "printing" large amounts of currency and then buying treasury securities (i.e. bonds and bills) so that their price rises and the yield falls. The falling yield then causes the interest rate to fall.
But a mountain of money has been created. This money has to find a home. Where will it go? Enough of it is going to go into hard assets (i.e. commodities) to cause a significant price rise.
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