The Fed’s Immiseration of People Who Live on Interest Earnings | History News Network

Even apart from the Fed’s entry into clear credit-allocation activities (e.g., buying mortgage-backed securities rather than Treasury bonds alone), it is plain that the Fed is acting in a way that impoverishes a definite class of persons—those heavily dependent on interest earnings for their income—and, moreover, that a policy of keeping interest rates on low-risk assets near zero must eventually wipe out such persons’ incomes completely. In that event, people who worked and saved over a working lifetime, taking personal responsibility for guaranteeing their self-sufficiency during their elderly, nonworking years, will be able to survive only at the mercy of the providers of private and public charity.

via The Fed’s Immiseration of People Who Live on Interest Earnings | History News Network.

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