Forum Post: America's Savings Rate
Posted 10 years ago on Oct. 6, 2014, 12:10 p.m. EST by turbocharger
(1756)
This content is user submitted and not an official statement
Stacking money in a shoe box is a lot less sexy than some rims or new boots, but when the shtf those boots ain't gonna bail you out.
If we don't know how to put together a rainy day fund, chances are the next recession is going to really mess this place up bad.
The savers have been the losers ever since printing money became our national pasttime. The (Non-)Federal (No-)Reserve has the stated inflation target of 2% a year. From the link, average person may have $55,000 in assets. The annual target is to make $1,100 of the purchasing power disappear into thin air every year. It is a slow burning of the money.
Our policies are teaching people that it PAYS to be unprepared for the next recession. "Messing this place up bad" is considered "fear mongering."
Its a sad state of affairs thats for sure..
The U.S. must soon learn to kowtow to its banker, China, for "borrowing" its savings. Rest assured, it will NOT be much worse than dealing with IS. China is after all a major trading partner of the U.S. The kleptocracies in power in both countries will try their best to avoid any shooting war.
中国。你好
Probably going to see more cyberwar than anything else I guess.
"Wir kommen, um zu helfen," murmelt die amerikanische Staatssicherheit.
inflation of price is tied to greater money circulating
the increase of stagnant money does not drive up prices
Partly true initially as inflation takes off. Once people notice the general rise in prices, they demand more for their goods and services. That in turn creates a shortage of already increased currency. That shortage can only be overcome by creating even more currency so that the economy can function. Once this vicious cycle has been entered by creating inflationary expectations, the only way out in a non-disastrous way is to apply the brakes hard. Paul Volcker did just that in the early 1980's. The treasury rates spiked above 17%. Unemployment rate went above 9%. 14% for a new car loan would have been considered a very favorable loan rate. (WTF is Hank Greenberg now complaining about the 14% capital infusion into AIG by the U.S. in 2008 and later?)
Stagnant money not driving up prices is precisely the reason why the (Non-)Federal (No-)Reserve is still printing more money. It is like: if this printing of money has not worked, let us print even more to drive people to work by increasing prices generally. The important question is what are people being driven to do? Jobs! Jobs! Jobs! Yeah, some people are hogging three of those to make ends meet.
I think we have entered a secular period of (not-so-visible) unemployment and underemployment. After all, those who hog three or more jobs, please praise our miraculous job-creation machine and then shut up.
When tshtf money won't be worth the paper it is written on - no? But yes anytime you boycott ws I'm in...just remember every worthless thing you buy has a 400 percent markup that ws pockets and they use that to buy your government ...America put away your wallets stop selling your government for a bobble or toy. Invest in organics ...give your family healthy food and keep these farms in business and your family the energy for the coming fight ahead.