Carmen Reinhart (co-author with Kenneth Rogoff of
“This Time is Different: Eight Centuries of Financial Follies”,
Princeton University Press, 2009, translated into French by Michel le Séac’h,
Pearson, 2010) explains why the current crisis is not over in the US or Europe
and why it bodes ill for savers. Money is transferred from savers to borrowers
via the current negative interest rates. And more is to come via explicit
“haircuts” on debt and/or inflation, both meaning a substantial financial
repression of savings.
The best one page analysis of the current financial and governmental
crisis I have read to date. Read the Spiegel Online interview
here.
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