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Federal reserve cutting rates to historic lows, economy not good for savers, rate cuts cause savings account to go down, cost of living higher than interest rate on savings account
the fed is an international banking cartel which uses inflation and deflation to whipsaw the average bystander out of their savings. one economic machination is not more favored over the other when the goal is to ensure that the public's savings ends up in the accounts of the shareholders of the federal reserve system.
It has taken a good 3-6 months for a group of us here to finally get it through the heads of so many CD posters that the Fed is at the heart of all this financial turmoil. Is our effort finally paying off???
Just what is so frightening about a deflationary economy? I never expected to make any money on my house and I expect to stay there for a lot longer. My mortgage is nearly paid. I have a secure job and would not mind if prices of food, energy and gasoline fell through the floor. I actively want the financial, investment and real estate speculators to go broke as individuals and as a system.
I would have preferred a system where I could have put 15% of my wages in a tax free guaranteed 4% compounded savings account instead of having to risk them in an IRA. My IRA got hammered but still has done better than any savings account.
The point of a FIRE economy is to force the masses to borrow money so the Finance, Investment and Real Estate boys can make the profits at the masses expense. Well the FIRE boys played money and lost it but somehow they kept their own money intact. We need a revolution that will prevent this from ever happening again.
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Hi GregW,
What is so frightening? Do you want an angry mob on your lawn with nothing to lose wondering why you "stole" everything from them because you obviously have it too good(It does not matter if its accurate). Do you want a dictator to fix this problem? Will he give from the haves(you) to the haves not(them)? What comes to my mind is James Madison when he cited the greatest threat we have, "tyranny of the majority". What happens when a desperate majority just wants to get to tomorrow and will do anything to get there. My advice, don't look too fat and happy.
I just love these homestead types who think they are safe. The socialist dictator's main victim was the small farmer. See the Kulak.
Joseph Stalin, leader of the Soviet Union, set in motion events designed to cause a famine in the Ukraine to destroy the people there seeking independence from his rule. As a result, an estimated 7,000,000 persons perished in this farming area, known as the breadbasket of Europe, with the people deprived of the food they had grown with their own hands.
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Stalin also imposed the Soviet system of land management known as collectivization. This resulted in the seizure of all privately owned farmlands and livestock, in a country where 80 percent of the people were traditional village farmers. Among those farmers, were a class of people called Kulaks by the Communists. They were formerly wealthy farmers that had owned 24 or more acres, or had employed farm workers. Stalin believed any future insurrection would be led by the Kulaks, thus he proclaimed a policy aimed at "liquidating the Kulaks as a class."
Any rival power structure is threat and the food chain is always undermined. Oh and yes, the worst genocide in history was not in Germany. It just does not get much press. What did they have to be afraid of when they had all the food?
It does not even have to work out that way. How does a federal land tax sound to you? Surly people who don't have a mortgage to pay can contribute to the good of the society. Everyone must sacrifice. The gold bugs must be safe too. They would never tax gains made on gold to 95% would they? Well, not unless it was for the greater good just like in the last depression where Americans faced prison for not turning in their gold.
No matter how well you have done for yourself what ultimately happens its what happens to everyone to some degree we do not yet know.
It has taken a good 3-6 months for a group of us here to finally get it through the heads of so many CD posters that the Fed is at the heart of all this financial turmoil. Is our effort finally paying off???
Hi Nor'Eastah,
In 2006 someone else went through the effort to educate me. I have studied economics for years and I feel I am most guilty of all people to assume I knew how our money really worked. I do however take instruction when I have the facts presented and when presented the transformation was immediate. It took another year to grind though the details but it is all so clear now. That created a naivete` in me when I thought others would also make an immediate change.
To make clear ,the Federal Reserve is not quite the whole problem. Jackson killed the bank but not fractional reserves and monetary manipulation. It is the Federal Reserve and its member banks that control it that represents the whole system.
And the Fed needs to die. The question is how do we collectively raise awareness and pitch to the gerbil-on-a-wheel I call the American median that their economic dispossession is concentrated on the existence of this particular institution? Once we are able to effectively convey to the masses that the Fed is robbing them blind we stand a chance of having the masses push for the abolition of the fed and fractional reserve banking with enough sincerity to disobey and go out to the streets when the banking class obviously says 'no way'.
Meanwhile the govt is doing nothing more than propping up the machine in hopes of delaying exactly what would precipitate such change in perception on the part of the masses: unemployment and economic contraction. The only way you're going to make the average apathetic american pay attention is to bring reality to his/her monthly reality. The bailout is just propping the house of cards in the ephimerous hope that a new bubble becomes apparent and can be inflated, perpetuating the cycle on the banker's FACTUAL knowledge that the masses (the pawn) do not have long term memory. Not giving any bailouts would have exposed the house of cards faster than it will with the fake money infusion; only in America do we accept the idea that even in the knowledge that crack is bad for you in the long term, giving more crack in the short term while bad for you, is still good for you in the short term because it makes you feel good, while concurrently acknowledging that it will kill you anyways. WTF. Sound familiar? It does because it's our current justification for giving the bailouts, we are the worst kind of slaves I tell you.....
I would have preferred a system where I could have put 15% of my wages in a tax free guaranteed 4% compounded savings account instead of having to risk them in an IRA.
You can put as much of your income (after tax) as you want into it, and all dividends are tax free. Your risk of capital gains tax when selling is extremely small as it stays in a very tight price range. You can reinvest all dividends in order to create compounding. It's returning 4% annually over the past three years. It's not guaranteed but it's remarkably steady.
In 2006 someone else went through the effort to educate me. I have studied economics for years and I feel I am most guilty of all people to assume I knew how our money really worked. I do however take instruction when I have the facts presented and when presented the transformation was immediate. It took another year to grind though the details but it is all so clear now. That created a naivete` in me when I thought others would also make an immediate change.
To make clear ,the Federal Reserve is not quite the whole problem. Jackson killed the bank but not fractional reserves and monetary manipulation. It is the Federal Reserve and its member banks that control it that represents the whole system.
Someone told me to read The Creature from Jekyll Island and from there I did some more research and came to the same conclusion.
It sure is eye opening when the light bulb goes on. When non-government entities have the term "Federal" or "Government" in them it's all to easy to just assume they are part of the government.
To make people aware is by creating a video, pamplets, an article that easily explains it to people. It would need to be in plain english, pictures, graphs, and backed by hard data that people can easily look up to verify it. That would be a start. It's hard to find information as to what the Fed does, why it's corrupt and faulty.
It is discussed on here but it's still a little hard to understand.
from a supkis blog:
The Federal Reserve was set up to maintain a reserve funds that supposedly wouldn't be touched by politicians. But alas, this is a fiction. Just like your own bank account, if one is married and sharing an account and one party keeps raiding it and spending it on guns and cars or fur coats or whatever, it runs out of funds and then something bad happens like a hurricane hits, and the cupboard is bare.
In the case of empires, a way to gage solvency is, how big is their own reserves compared to the size of these same currency reserves held by potentially hostile rivals? In the case of the USA, we send dollars out as fast as we can print them. If too many people getting this flood of money, around $800 billion a year now!!!!!! If they don't keep a big chunk in bank vaults, the value of the dollar drops. So they keep it in reserve, in case of a 'rainy day'. Like 9/11.
And if we think of these funds as boats, then China has Noah's Ark, Japan has an aircraft carrier, Europe has a holiday cruise liner, Russia has a very fancy yacht and the USA has a rowboat made out of an old bathtub. That is leaking.
China has $1.3 trillion in its reserves and is therefore, King of the Mountain. Japan has $900 billion and is no longer holding new currency so all the red ink in trade is no longer staying away, it is floating back home to here, as inflation. Europe has about $600 billion and Russia, $330 billion. The USA has only $66 billion and the numbers released today by the Federal Reserve shows that number is DROPPING. Yikes. (this was in 2007 by the way)
Location: Georgia, on the Florida line, right above Tallahassee
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George Bush tried stimulus last year by mailing out checks up to about $1,200, and human nature "defeated" that stimulus by saving too much of the check. The U.S. savings rate rose in 2008 to nearly 4%. That was bad. The smarter Obama team wants the savings rate this year and next to return toward zero. They want their billions spent, not saved. Opinion: 'Hair of the Dog' Stimulus - WSJ.com
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