Savers are not sacred cows, redux

Savers are not sacred cows, redux

 

Negative real interest rate is what fundamentally facilitates the financial engineering of systematic wealth and debt redistribution between 1% and 99%. The savers are repeatedly sacrificed for the sake of financial innovation. However, they are normally well compensated by the welfare state. In the end, it’s the welfare state that keeps 1% and 99% happy and the class war at bay.Nevertheless,the welfare state as the panacea to the capitalism’s ills incurs substantial costs, which Europe now is paying heavily with a sovereign debt crisis.

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