By Dmitry Orlov Previously, I have written about the progression from positive interest rates to zero interest rates (since 2008) and finally to negative interest rates. And I asked my readers a simple question: How will negative interest rates blow up the financial system? And apparently none of you knew the answer. Now, I must confess that to start with I didn’t know the answer either, which is why I asked the question, and my first attempts at finding it were somewhat tentative. But now, having thought about it, I do seem to have found the answer, and it is that… But first let us back up a bit and answer several preliminary questions: 1. Why did zero interest rates become necessary? 2. Why are negative interest rates now necessary? and, 3. Why are negative interest rates a really excellent idea?* * if you ignore certain unintended consequences (which is what everyone does all the time, so let’s not worry about them just yet). 1. Interest rates went to zero because economic growth