“For a little reflection will show what enormous social changes would result from a gradual disappearance of a rate of return on accumulated wealth … this state of affairs would … mean … the euthanasia of the cumulative oppressive power of the capitalist to exploit the scarcity-value of capital … so that the functionless investor will no longer receive a bonus …”
– John Maynard Keynes, “The General Theory of Employment, Interest and Money”
Well, no need to worry about those wealthy investors sitting back and clipping coupons. With interest rates still at historic lows, monetary policy continues to assault the saver and reward the debtor. Great, just what the country needs.
Save for a brief interlude during the early 1980s, when Ronald Reagan stood by Federal Reserve chief Paul Volcker, who allowed interest rates to rise, both parties have embraced the Keynesian nonsense of easy money and artificially low rates of interest. Continue reading