“Secondly, the near-zero interest rates being paid by banks and other savings vehicles are so low that it actually discourages people from saving when they need to be doing it most. I had the severe displeasure of scanning rates on money market funds for a client the other day and found that the average of the handful of money market funds I looked at was .06%. That is six cents a year for every hundred dollars invested. Incredible. And when you figure that veritable fortune is taxed? Well, what’s the point of even saving? “
Just some thoughts of mine:
1. Money is capital
2. Zero interest rates= no increase in capital
3. No increase in capital+inflation= erosion of what capital remains
4. Soon, no capital remains- it will be worthless paper if it exists at all.
Got Gold?