And yet you wonder why I continually post that you are an idiot? So let's see what's wrong with your post...
Inflation is not 3%. It is barely 2%. (of course you will now argue that the standard measures of inflation aren't correct. Yet you will offer no other measure or intelligent alternative).
Inflation at 2%, really. Been to the food store lately? Everything is up 12-15% year over year. Every year. Meats, cheese and dairy much more! Package
sizes being redused to hide most increases!
Your comments regarding the ability to borrow from the Fed show your standard lack of knowledge. I know it is against your religion to actually read something directly from the source...but someone else may wish to educate themselves:
ALL interest rates (let me repeat that...ALL interest rates) are a function of the Fed's Federal Funds Rate...which is currently targeted at 0-.25% (see link above for latest rate).
We'll call this ZIRP "Zero Interest Rate Policy." So, financial houses, investment firms, banks, etc. can borrow form the fed at 0%-.25% And loan that out at 7-29% or more?
They are just middlemen for the fed raking in BILLIONS in interest payments on money created out of thin air.
At the same time, the fed has been buying, (creating out of thin air, over a TRILLION dollars per year,) mortgage backed securities, trying to keep the system propped up.
They have been doing this for over the past three years. That is well over three (3) TRILLION dollars. And you don't think that that kind of volume of money entering
the economy, in that short time frame, is not going to cause inflation in excess of 2%? You are the idiot!!!
These financial elites get first use of pre-inflated dollars before it trickles down to the consumer level.
Why are home loan rates so low? Because no one has the income anymore in which to afford a home anymore. The market has been stagnate for years! Even with home prices falling! Why are yields on 10 yr Treasuries so low? Because the Fed has short term rates set at the zero bound and is actively purchasing US debt (Called monetizing the debt because no longer are other countries crazy enough to invest in the US Government) in the open market to further suppress rates. So your comment about IRA's/401ks is dumb on multiple levels. In addition to the zero bound, IRAs and 401ks are not investments. Really, not investments? Then why do those accounts pay interest? Are not accounts that pay interest investment accounts? They involve sections of the IRS code that do nothing more than defer taxation until money is withdrawn. What an individual puts in an IRA or 401k is up to that individual (subject to limitations of a company 401k plan) So the 1 yr CD you can put in an IRA is the same 1 yr CD you buy in a non-IRA.
Your rumor is just asinine. There is no Federal proposal to charge individual savers. If there were to be talk, there just might be a run on the banks. So of course they're not going to publicly talk about it. There is an economic policy debate over whether the Fed should stop paying interest on money the large money center banks are holding in the Fed banks. There are also proposals to charge a fee to those banks for holding money at the Fed banks. Both ideas are based out of the need to get banks to start loaning again and get credit flowing. Money held at the Fed is useless to the overall economy. Yeah, yeah, yeah... look over here, nothing to worry about folks, we're just worried about the big money guys, thought smaller in number, not you small fry, with millions and millions of bank accounts.
The European Central Bank-PRESS RELEASE
5 June 2014 - Monetary policy decisions
At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:
The interest rate on the main refinancing operations of the Euro system will be decreased by 10 basis points to 0.15%, starting from the operation to be settled on 11 June 2014.
The interest rate on the marginal lending facility will be decreased by 35 basis points to 0.40%, with effect from 11 June 2014.
The interest rate on the deposit facility will be decreased by 10 basis points to -0.10%, with effect from 11 June 2014.
What this means is the banks in Europe will now start charging customers to make deposits, individual savers etc.
If is happening there, it very well might happen here! To think otherwise is folly.
You may now revert to your common theme of telling the world how you are such an informed voter and citizen.
