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MarkGB 

"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world" - Henry Kissinger

and yet...

"Sooner or later everyone sits down to a banquet of consequences" – Robert Louis Stevenson

Martin Wolf wants to wipe out 'rentiers' with cheap money

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'

http://www.ft.com/cms/s/0/d442112e-d161-11e3-bdbb-00144feabdc0.html#ixzz46ZxqhLnf

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.

Don't tell Tony Blair to shut up - make him talk

Tom Braithwaite says Goldman is struggling to restore brilliance