The heads of some of the biggest US banks gather for a press conference outside the White House after a 2009 meeting with President Barack Obama. John Stumpf, center, CEO of Wells Fargo, is at the microphone. (Mark Wilson/Getty Images)
In America and Europe, there is a silent transfer of wealth taking place every day as savings are eroded to fund government spending. Cash-strapped and heavily indebted governments are desperate to hold down the interest rate at which they borrow. This means perennially low interest rates for savers: rates so low that they don’t match the rate of inflation. The result is that retirees are forced to consume their wealth in order to pay the bills.
Click here to read the full analysis, written by Peter Warburton, PhD, only at LIGNET.com.
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