Friday, 16 August 2013

Daily Mail: The £170bn secret raid on your savings: How keeping rates at a record low is a government ploy to pay off its debts

"The injustice of easy money is going mainstream" Steven Baker MP writes today, referring to an article in the Daily Mail. James Coney, the author of the referred to article writes,
A stealth raid by the Bank of England has stripped savers of more than £170billion, a Money Mail investigation can reveal.
By slashing the base rate to a record low of 0.5 per cent and allowing the cost of living to soar for more than four years, the Bank has whittled away the value of cash sitting in High Street accounts through a ‘secret tax’.
And it is not just savers who have effectively had their money pinched. Anyone who has a fixed monthly income, such as pensioners, or has had a tiny pay rise, has also lost out.
Steven Baker concludes: "Given that the alternative is higher interest rates, sound money and a painful correction, governments and central banks think they are taking the easy way out. We’ll see."

We'll see indeed. Mainstream opinion is a bit tougher for governments to fight than the small minority influenced by Austrian Economics. Let's hope mainstream awareness of the faulty economic policies that destroy wealth grows quicker than public debt going forward.

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