Governments on both sides of the Atlantic, he said, are committed to Keynes' policy of increasing public debt to sustain levels of economic production, consumption, and employment.
He said artificially low interest rates are another key to the strategy of increasing spending and discouraging saving. With no incentive to keep money in the bank, those who would have otherwise been savers are pushed to spend.
"Zero interest rates factually equal a de facto transfer of wealth from he who was a virtuous saver (although not for Keynes) to he who has become virtuously (for Keynes) indebted," he said. "Practically, it's about a hidden tax on poor savers, a tax transferred to the wealthy, (that is), over-indebted states, business people and bankers.”
Although the alternative to zero interest in such a situation is economic collapse and eventual default, the zero-rates "are not sustainable and are dangerous," Tedeschi warned.
"They destroy savings, which is an essential resource to create the base for bank credit; they promote speculation on real estate and securities, create illusory artificial values rather than scaling them down; they push consumption to more risky debt; they alter the market with artificial values and thus lead to belief that the very markets do not know how to correct themselves."
The biggest danger, Tedeschi said, is that zero interest rates "permit, or impose governments into management of the economy, without correcting inefficiency and facilitating distortions in the competition."
He warned that the greatest economic impacts may be on the way.
In the future, he said, inflation might be used as the "maneuver" to absorb the enormous debt in both the U.S. and Europe. Debt levels are now three times as large as the gross domestic product in most countries, he observed. Governments have thus far been able to control inflation by controlling consumption rates.
"Someone," he said, "is hoping for new taxes to sustain a new statism that reinforces a rather weak political class in the whole western world."