From money printing to savings printing

Sleight of Hand: The UN-endorsed 2008 System of National Accounts is being implemented to make international comparisons easier. The new system increased the US saving rate by 1.5% of GDP last year: the “benefits” of defined pensions are booked as “savings” even if not funded, with future “savings” discounted at 5.5%. The UK is going one better. It is assuming that these “savings” will never be lost and discounting them at only 3.2%, which will add 3%-6% per year to the British savings rate.