Tuesday, 20 September 2016

Crusade against Saving

Taking their cue from 'Saint Maynard' the political and economic 'Elites' that rule Western Societies wage a merciless war against Saving, and by implication against individuals that want to manage their own affairs responsibly. The ulterior motive may be to make people completely dependent on the Welfare states that countless bureaucrats are employed to administer.
Given that most economies sail along at a positive rate of growth - albeit not much above zero - and that inflation/deflation can safely be allowed to fluctuate around the zero mark (plus or minus 2 percent should not mean the end of the world by any stretch of the imagination ) it is not obvious why 'QE a outrance' should be on the policy menu at all.
Has a strange form of hysteria taken hold of Central Bankers and their camp followers in Media, Academia and Politics?
Why would it be morally acceptable to steal from savers and give to borrowers when - for thousands of years - saving was to be held in high esteem and spending/borrowing was to be discouraged?

No comments: