interest rates Archives - Emile Woolf writes

ECONOMIC DISTORTION, COURTESY OF CENTRAL BANK

“GOING POSTAL” 25-2-19         [ECONOMIC PERSPECTIVES no. 50: EMILE WOOLF] ECONOMIC DISTORTION, COURTESY OF YOUR CENTRAL BANK Governments rarely set out to take responsibility for every single issue, but that usually happens anyway. As a result there is a growing expectation by citizens that, whatever the problem, it is the government’s job to sort it out […]

Read More…

Understanding Economics 4 – Interest rates

Let’s look more closely at the role of interest rates Money is one of many forms in which wealth may be held, but money and wealth are not synonymous. Wealth is the accumulation of savings. Savings, in a business, are what is left after meeting all its direct and indirect costs, depreciation, distributions to the […]

Read More…

Economic Perspectives – 5 – The true interest rate story

ECONOMIC PERSPECTIVES 5 “Death by 1,000 cuts” This was the name given to the ancient Chinese method of torture and execution. It survives today as the role model for central bankers whose insidious cuts – in interest rates – are relentlessly destroying the life-blood of savings throughout the world. Collateral damage caused by this folly […]

Read More…

Pension fund audits: time for a rethink

November 2016 “Accountancy” The central bankers’ obsession with interest rate cuts as a means of stimulating economic recovery reminds me of the “dare” games we played as children, such as “how long can you keep your finger in the candle flame?” Or, in banking terms, “how close to zero can you fix interest rates before […]

Read More…

Economic Perspectives 3: Interest Rate Suppression

The importance of interest rates I have written many times of the persistent but forlorn attempts by central bankers to “stimulate” growth in their countries’ flagging economies by applying the twin practices of quantitative easing (QE) and lowering interest rates. It has been clear for years that these policies simply do not work. The only […]

Read More…