Friday, April 12, 2013
What this article fails to explain is that the government wants to devalue out of -government- debt. Which it can do by pushing interest rates out into private sector. It is not quite the grand general saver to debtor transfer. The gov. locks in at 2% for 15 years with central bank assistance, the private sector picks up the actual interest rate costs. Probably there will be a mix of savers losing pensions and debtors facing increased repayment costs. When the wealth of a country turns out to ephemeral, there aren't so many different ways to slice it.