THE WAGES OF “QUANTITATIVE EASING:” Central bank money-printing has impoverished a generation of older, small savers.

Intergenerational unfairness is one of those intellectually sloppy complaints that nevertheless commands a strong following among a certain cadre of privileged young metropolitan types. It even has its own think tank – the grandly named Intergenerational Foundation. . . .

Yet for those who continue to insist that the baby boomers have had it cushy, consider the following. Say you have done the right thing throughout your working life, and saved when means allowed. . . .

One reason for these now painfully low annuity rates is rising life expectancy. Yet the bigger explanation is officially sanctioned, ultra-low interest rates. Central bank money-printing may or may not have saved Western economies from ruin in the aftermath of the financial crisis, but it has also disfranchised a generation of older, small-time savers.

Just as the main demographic bulge of post-war retirees come to buy their pensions, they find themselves – thanks in part to these interventions – confronted by the lowest rates of return in history.

A recent report by the management consultants McKinsey tried to put hard numbers on the consequences. Their findings were shocking. Since 2007, the world’s four most influential central banks have injected more than $4.7 trillion of new money into the world economy.

The effect has been to help drive both short- and long-term interest rates to record lows. The chief beneficiaries, as you might expect, are governments with big deficits. In the UK alone, ultra-low interest rates are reckoned to have saved the Government some $120 billion since the start of the crisis.

Highly indebted households will also have derived a major benefit. Without these interventions, many would be facing foreclosure. What tends to be forgotten, however, is that most households are net savers, not debtors. On the McKinsey figures, households as a whole have lost out to the tune of $110 billion – a massive transfer of income from people to government, amounting to nearly half of what the Government collected in income tax last year.

It’s financial repression. And it’s produced a Senior Squeeze that, in this country at least, would be getting a lot more media attention under a Republican administration.