Wednesday, November 18, 2009
Fortune Exposes Zimbabwe Ben
"This is a quiz. What do the record-high Wall Street bonuses have in common with the record-low yields for savers? Answer: They show yet another way that prudent people, especially those living on fixed incomes, are being screwed by the government's bailout of the imprudent. ... The government is spending trillions to keep interest rates down in order to support the economy and prop up housing prices, and those low interest rates have inflicted collateral damage on savers' incomes. 'It's a direct wealth transfer from savers and retirees to overly indebted borrowers,' says Greg McBride, senior financial analyst at Bankrate.com. ... One day, the federal government won't be able to keep all these interest rates artifically low, as it's now doing. The Chinese goverment, our major financier, is growing restless. The dollar's falling sharply relative to other cuurencies is an ominous sign. If thbis problem accelerates, it will put pressure on the Fed to let interest rates rise to protect the dollar from collapse. ... A nice reward from the government for a lifetime of savings. Thanks for nothing, guys", Allan Sloan at Fortune, 9 November 2009.
Sloan says it all. It is Uncle Sam's policy to "tax" savers to protect the banks. Storm the Bastille! Or at least, kill the banks.