The federal government spends money and discourages saving, and that's not going to help the economy, says senior economic consultant John Browne of Euro Pacific Capital, an investment firm.
"The Fed at the moment concentrates on spending a lot of money, on stimulation, and on discouraging saving by lowering interest rates so that people are losing money in the bank," Browne told Ed Berliner on "MidPoint" on Newsmax TV
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However, he argues that "savings are essential for healthy business investment and real productivity and wealth creation, as it proved for the whole of the 19th century until [John] Maynard Keynes came along."
Keynes became popular because "he was given the accolade for getting [the country] out of the Great Depression, which I think was a false accolade," said Browne, a former member of the British Parliament.
As a result of his apparent success, "his policies became the mantra for nearly all economists today, and of course the mantra of Janet Yellen of the Fed, who sees him as a hero," Browne said.
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