In response to an FT article by Martin Wolf on 6th May 2014, entitled 'Wipe out rentiers with cheap money'...sub-titled 'Cautious savers no longer serve a useful purpose'
This is a lot of interesting pieces of information followed by conclusions that are absolute tosh. The most misleading of which is the following:
"In a world of abundant savings, the available returns ought to be low; this is a consequence of market forces to which central banks are responding".
Firstly, in a world where currencies are being systematically debased in a race to the bottom, and 97% of 'money' is debt, there is no abundance of 'savings', there is a massive bubble looking for a pin. Secondly Central banks are not responding to market forces, they are destroying them. They have bent, twisted and rigged market prices until there are no free market prices left. Little wonder that business people with a grasp of how real wealth is created are cautious about playing with a rigged deck. Central banks, particularly the Fed, have perverted markets by printing money which provides a free lunch to the banking cartels, and ZIRP which misallocates capital and provides governments with a get out of jail card to continue propping up their insolvency.
This article demonstrates a confusion between what are causes and what are affects, and provides intellectual cover for meddlers, looters and skimmers. There is a huge transfer of wealth going on and this kind of logic helps it along very nicely.