quote:Now higher, not lower, interest rates are preferable because interest is no longer a cost, but rather income that we can pour back into our savings. Retirement is foremost in the mind, not spending -- except, perhaps, on the grandchildren. … Interest rate cuts stimulate expenditures by borrowers and penalize the income of savers. An aging population results in a reduction in the number of borrowers and an increase in the number of savers. The massive boomer population in North America is now entering prime saving ages. Even those who are not yet there are in their 40s, beyond their prime borrowing ages. In this new demographic world, interest rate cuts are increasingly ineffective in boosting the economy. Our senior decision-makers should not be surprised that numerous successive interest rate reductions over the past year have not stimulated spending. The demographic envir- onment has changed forever.