It is pure debasement of the currency, plain and simple. Historically, it rarely ends well.
My hat is off to our Canadian neighbors. They are reaping the benefits of sane economic and energy policy.
They are trying to bring America to its knees while the sheeple are sleeping.
I had a grandma who kept her money beneath a floorboard under her bed. Maybe I should do the same.
There are no rewards for people who work hard and save their money. They are all saps.
The only way the government will be able to pay for Social Security will be to inflate it away.
Unfortunately, that is taking away the money we saved to compensate for the loss of SS.
Message to savers: “FU”.
There were decades when S&Ls paid 4% on passbook savings and loaned the money out on houses at 6% ... and it worked just fine.
No more.
Oh, you can still get a return on savings... just don’t save in the form of cash. Saving in the form of tradable metals is perfectly viable.
Pure Keynes.
Personal savings are being STOLEN BY THE STATE!
When asked if this was political, his eyes started blinking fast and he looked down and to the left. Classic tells.
Paying off a 30-year fixed rate mortgage at an interest rate around 4.5% is great for the borrower, but the lender is going to take a huge bath on this if: (1) interest rates rise; and/or (2) the effective currency inflation rate is higher than 4.5%.
To the extent that our economy “works”, it does so because people spend. Each and every year, we hang our hat on the Christmas season. The entire health of the economy judged by people spending money they don’t have on stuff they don’t need. When that’s your barometer, you’re screwed. Saving is for the manufacturing powerhouses, not the U.S.
BOHICA.
For years now, savers have been forced to contribute to the bailout of all the financially destructive policies implemented by politicians, the Fed and some Wall Street types. And there is no end in sight.
Best hedge is dog food futures because that’s all Florida seniors are going to be eating.
November 6, 2012: a day of reckoning
Punishing savers for not 'investing' in the economy is standard. Dont forget to give Obama credit for the stock market as those libs on MSNBC are doing
Alternatively if the two parties were to really let all those tax cuts expire and all those spending cuts to go into effect, at the same time, the result would be a huge slowdown in the economy and market dive, at least in the near term. Long term (in years) it could actually be good to have the deficit reduction, but few really care about that.
Pity the party in the WH if that happens, although it would be Obama’s second term so he would NOT be at risk asa Romney POTUS would, Romney would just make a deal if he thinks he will get blamed.
” - - - He is punishing saving...trying to force people to spend or put money in equities. “
In other words, The Fed is trying to replace Private Capital Investment, otherwise known as Capitalism.
BTW, isn’t Bernanke a University Professor who has never worked a day in his life earning a living in Private Capital Businesses? Well, except for being paid for mowing his parent’s lawn.
BTW, BTW, a suggested new Bernanke policy slogan: “Spending will continue until we are out of debt!”
(Hmmmmmmm, - - - - if that is good enough for The Federal Reserve, then it is good enough for every hard-working American Family too)!
Except that by definition, retirees - the savers - will be dead and will not benefit from these ULTIMATE benefits.
The primary competing interest to higher interest rates is the national debt. It is far easier to pay on a debt with 0% interest. If interest rates were to go to 4% on the debt the fed would default.
We already pay $250 billion in interest each year on the debt with notes near 1.5% on average. Imagine the debt at 4%, the interest payment would be $640 billion. At 7% the debt interest would be $1.12 trillion.
We are broke. The older generations have borrowed/stolen from their children, grand children, and many generations past that.