Friday, 12 August 2016

Quote of the Day: “The side-effect of rock-bottom interest rates is inequality”


“We know … what happens when the [central bank] starts to manipulate the financial markets by printing money. Interest rates do fall, which crushes savers. And pension funds get hit too, meaning larger liabilities for some companies and bankruptcies for others. The side-effect of rock-bottom interest rates is sky-high asset prices, delivering a windfall for the richest. It’s the best subsidy scheme ever devised for the 1 per cent.
    “QE is a magic wand of inequality.”

~ Fraser Nelson, ‘Forget QE. Theresa May should cut taxes f she wants to drive growth. – TELEGRAPH


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