Have you been saving money all your life for retirement? If so, or you are in the process of doing so, beware. Have you considered that the debt obligations of the world's leading governments will most likely be financed by eroding the value of your savings? According to leading economist Carmen Reinhart, this is probably going to happen.
Economist Carmen Reinhart argued in her March 2011 academic paper, “The Liquidation of Government Debt” The Liquidation of Government Debt”, that the US Government can finance its debt by placing “caps on interest rates” and by creating a “captive domestic audience” to invest in US Treasuries. She argues that negative real interest rates in the face of a steady, although not necessarily extreme inflation ra…Read more >