Vatican bank chief issues warning about US, European economic policies

[ProVobis]

In case there are some economists out there who care:

catholicnewsagency.com/news/vatican-bank-chief-issues-warning-about-us-european-economic-policies/

 

[JimG]

"He said artificially low interest rates are another key to the strategy of increasing spending and discouraging saving. With no incentive to keep money in the bank, those who would have otherwise been savers are pushed to spend."I hope Ben Bernanke is reading this, but he probably isn’t. In any case, the Fed seems determined to punish savers and reward debtors.

 

[laszlo]

"He said artificially low interest rates are another key to the strategy of increasing spending and discouraging saving. With no incentive to keep money in the bank, those who would have otherwise been savers are pushed to spend."I hope Ben Bernanke is reading this, but he probably isn’t. In any case, the Fed seems determined to punish savers and reward debtors.

The FED tries to delay the bankruptcy of the country. The interest on the Federal debt now at less that 3% is 400 billion a year. Every percent increase in the rate means 140 billion more expense. For comparison the new Republican congress intends to cut the expenses by 100 billion a year.

The resolution will be an inflation what hit Germany in the early 1920’s, somewhere over 1000 % . The savers will lose everything, except gold, real estate and intellectual property.