They have a license to steal from savers and everyone else who is punished by dollar devaluation. Pity the retired who were counting on reasonable rates of return from their savings. They were also effective in controlling new regulations so that a major culprit in our recent economic decline: excessive debt and leverage in the financial system, including unbacked huge financial bets through off-balance sheet derivatives, were excluded from consideration and tighter regulation. The reason: it is profitable for these banks to take huge risks knowing that the Fed will stand behind them to shift unexpected losses to tax payers through currency devaluation.
One sad consequence is the growing wealth disparity due to the Fed pushing the string trying to “stimulate” the economy by loaning out money. But that just creates speculation and doesn’t grow the economy and jobs; only sound money and long term investment can do that. Then a lot of people are suckered into the idea that the “rich” aren’t taxed enough, but in reality anyone who commits their money to a long term investment (e.g. trying to start their own business) and becomes “rich” is taxed too much by taxes and inflation.
I immediately thought of this article I read recently.
Politicians are constantly trying to repress trends and events, which in fact make those systems much more unstable, and the change even more destructive.
http://www.fooledbyrandomness.com/ForeignAffairs.pdf
In the globalist economy, the dollar will fall to balance with currencies of once-third-world trading partners, who now do the manufacturing that Americans aren’t allowed to do. So eat the consequences, and allow the global market to be a free market instead of what it is (managed, commie market with managed currencies). That said, spending should be cut from all levels of government to match the decline of sustainable revenues (from manufacturing, of course). No pity—only cheering for the next generation: a tougher, less spoiled and greater generation than ours.
I don't understand why this is not a HUGE issue right now. Where is AARP? The Republicans should be speaking about this NOW! Even the recently retired are eating into their basic savings because there is NO INTEREST being paid on their savings.
[The FED may justify the low rates on the basis of their "employment mandate", but the low rates are keeping older people, who would otherwise be retired, working.]