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The £170Bn Secret Raid On Your Savings: How Keeping Rates At A Record Low Is A Deliberate Government Ploy To Pay Off Its Debts

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http://www.dailymail.co.uk/money/saving/article-2392174/Interest-rates-How-keeping-record-low-deliberate-government-ploy-pay-debts.html

A stealth raid by the Bank of England has stripped savers of more than £170billion, a Money Mail investigation can reveal.

By slashing the base rate to a record low of 0.5 per cent and allowing the cost of living to soar for more than four years, the Bank has whittled away the value of cash sitting in High Street accounts through a ‘secret tax’.

And it is not just savers who have effectively had their money pinched. Anyone who has a fixed monthly income, such as pensioners, or has had a tiny pay rise, has also lost out.

Someone who earned £20,000 four years ago is now £804 worse off. A retired person living off a personal pension of £550 a month has lost £1,236 a year. A saver who has kept £10,000 in the best easy-access account has seen the value plunge by £1,243.

The money pickpocketed from savings and wages through this cunning attack is being used to pay off the nation’s debtors, including our own Government. This grab is about to get worse, too.

..

A PLOY TO PAY OFF £1.2TRILLION

So if you're losing money, where does it go? Again, it’s extremely complicated, but essentially it pays for a reduction in the debts of anyone who owes money. That inflation has been allowed to carry on above target is not an accident, rather it is a deliberate tactic by policymakers because the country owes so much money.

The Government has debts of £1.2trillion and households owe £1.4trillion. But, just as with money in savings accounts, every penny of this is worth less when the country has inflation. If the cost of living rises by 2.9 per cent, all this debt loses is a bit of its value.

Essentially, £34.8billion of national debt and £40.6billion of personal debt is wiped out. You only need to look at the housing market to see how this works. A mortgage of £39,000 would have bought the average home 20 years ago.

Today you would have to borrow £127,500 to buy the same property. Suddenly the debt of £39,000 seems tiny, even though it would have bought you exactly the same thing. Of course, all money borrowed is growing at a rate of interest — but even so, a substantial proportion will still be wiped out because of inflation. And it’s savers’ cash that is being used to fund this gap.

Renowned economists have also noted the sneaky way in which governments use inflation as a form of secret taxation. Milton Friedman, for example, observed that ‘inflation is the one form of taxation that can be imposed without legislation’.

And John Maynard Keynes said: ‘By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.’

I'm not certain how this information got in the Mail. House prices are a source of wealth aren't they?

Luckily the govt is inflating and still racking up huge amounts of debt.

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http://www.dailymail.co.uk/money/saving/article-2392174/Interest-rates-How-keeping-record-low-deliberate-government-ploy-pay-debts.html

I'm not certain how this information got in the Mail. House prices are a source of wealth aren't they?

Luckily the govt is inflating and still racking up huge amounts of debt.

They conveniently forget to tackle the inconvenience of how 'inflation' helps Govt repay debts when it does not involve wage inflation.

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News worthy yes but many already knew this, the govermnent will pay for this theft at the polls only problem is whoever is the new one is they will continue with the same policy's.How the hell does ordinary folk protect themselves against the biggest bunch of unpunished crooks ever seen on our planet.

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What is it with the news outlets today?

Telegraph 13/8/13

'Did QE punish savers for nothing?

Comment: A US study suggests "QE2" boosted economic output by just 0.04pc. Did pensioners and savers suffer for such little gain? '

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What is it with the news outlets today?

Telegraph 13/8/13

'Did QE punish savers for nothing?

Comment: A US study suggests "QE2" boosted economic output by just 0.04pc. Did pensioners and savers suffer for such little gain? '

Hmm, all that pain for just 0.04% growth, was it worth it? Evans seems oblivious to recession, that +0.04% could very easily have been -5 or -10%

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Daily Mail readers finally learning they're not exempt from 'We're all in it together' after all. Only the super-rich are.

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