{"id":20423,"date":"2016-05-05T05:28:19","date_gmt":"2016-05-05T10:28:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20423"},"modified":"2016-05-05T05:28:46","modified_gmt":"2016-05-05T10:28:46","slug":"the-central-bank-war-on-savers-the-big-lie-beneath","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20423","title":{"rendered":"The Central Bank War On Savers\u2014\u2013The Big Lie Beneath"},"content":{"rendered":"
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The Central Bank War On Savers\u2014\u2013The Big Lie Beneath<\/a><\/h3>\n<\/header>\n
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The central bank war on savers is rooted in\u00a0a monumental case of the Big Lie. Here is what a retired worker who managed to save $5,000 per year over a 40 year\u2019s lifetime of toil and sweat in a steel factory now\u00a0earns in daily interest on a bank CD. To wit, a\u00a0single cup of cappuccino.<\/p>\n

Yet the central bankers claim\u00a0they have absolutely nothing to do with this flaming economic injustice.<\/p>\n

\"\"<\/a><\/p>\n

That\u2019s right.\u00a0A return that\u00a0amounts to\u00a0one Starbucks\u2019 cappuccino per day on a $200,000 nest egg is purportedly\u00a0not the result of massive central bank intrusion in financial markets and pegging interest rates at the zero bound; it\u2019s owing to a global \u201csavings glut\u201d and low economic growth.<\/p>\n

Thus, Mario Draghi insisted recently\u00a0that ultra loose monetary policy and NIRP are,<\/p>\n

\u2026\u2026\u2026\u00a0\u201cnot the problem<\/strong><\/em>, but a symptom of an underlying problem\u201d caused by a\u00a0\u201cglobal excess of savings\u201d<\/strong>\u00a0and a\u00a0lack of appetite for investment<\/strong><\/em>\u2026\u2026This excess \u2014 dubbed as the\u00a0\u201cglobal savings glut\u201d<\/strong>\u00a0by Ben Bernanke, former US Federal Reserve chairman \u2014 lay behind a historical decline in interest rates in recent decades, the ECB president said.<\/p><\/blockquote>\n

Nor did Draghi even bother to blame it soley\u00a0on the allegedly\u00a0savings-obsessed Chinese girls working for 12 hours per day in the Foxcon factories assembling iPhones. Said Europe\u2019s mad money printer:<\/p>\n

The single currency area was \u201calso a protagonist\u2026\u2026.\u201d<\/p><\/blockquote>\n

Actually, that\u2019s a bald faced lie. The household savings rate in the eurozone has been declining ever since the inception of the single currency. And that long-term erosion\u00a0has not slowed one wit<\/strong>\u00a0since Draghi issued his \u201cwhatever it takes\u201d ukase in August 2012.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Central Bank War On Savers\u2014\u2013The Big Lie Beneath The central bank war on savers is rooted in\u00a0a monumental case of the Big Lie. Here is what a retired worker who managed to save $5,000 per year over a 40 year\u2019s lifetime of toil and sweat in a steel factory now\u00a0earns in daily interest on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,13269,124,3598,2120,233,282,1044,702],"class_list":["post-20423","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-big-lie","tag-central-banks","tag-contra-corner","tag-david-stockman","tag-ecb","tag-european-central-bank","tag-mario-draghi","tag-savings"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20423"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20423\/revisions"}],"predecessor-version":[{"id":20425,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20423\/revisions\/20425"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}