Google the term “financial repression” for nice primer on what savers (or more importantly, people that have to live off of the RETURNS from their savings) have to look forward to for the next decade.
Assume an inflation rate of 3%. With the government’s debt being out to mostly the 4-7 year range, that extrapolates to positive return of 2.25 for our government for every dollar of debt issued today at a rate of around .75%. Now look at what Japan has been dealing with for the last 20 years. There’s the American economy until 2030 (at least) or, to put it bluntly, when the boomers start dying off in large numbers.
Bump. Give more people a chance to see what’s going down...
She’s gonna blow, it’s just a question of when.