Forum Post: Retirement Crisis Coming with Inflation, Your Individual Savings Interest Rate = Zero, 5 years into it, Understand?
Posted 11 years ago on Dec. 12, 2012, 8:02 p.m. EST by Middleaged
(5140)
This content is user submitted and not an official statement
Older People are losing their Retirement Savings and You don't get any interest on savings. Banks get Treated a lot better than you do. Your Individual Savings Interest Rate = Zero, 4 years into it, Don't you Understand, You are losing money as the Dollar deflates... You are being Screwed through Stealth, .... You are a "Boiling Frog" ... It is like a Silent Death ... A Poison ... or a Financial Disease that you are being given?
You Fiat Dollar is being Deflated, and the Prices of Food and Products in the USA are being Inflated wihle your savings is being Ruined
You need to know that you need a Network to Pass Briefing Charts every week ... You Need to Know that you Need to be able to Speak in Public Several Times a Year Personally about the Ture State of the Union, Economic Charts, Individual Rights, and Worker Rights.
Everyone Must Send Current Charts & Graphs ... Monthy ... to Educate your Friends, Family, Community and State. Monthly!!!
1) Know Economics!
2) Know how Small Businesses are the Life Blood of your Community.
3) Know what Individual Rights are, should be, and have been decreased.
4) Know What Workers Rights Are.
5) Know that Corporations, Republicans, and Wealthy people Consider you to be weak, dumb, unorganized, uninformed, uneducated, and ... unable to strategize.
Pensions in the US are in Trouble. Retirement Funds are in Trouble. The Ripoff has already happened ...or was it just stupidity. Doesn't matter. Now you can not buy a house, get credit, invest your money ... or even get ... a little interest off your Individual Savings Account. What does it Mean? It means ..."No One Cares ABOUT YOU!!!!!!"...**
You are not represented. No one is looking out for you. Consider Voting Third Party in 2016 and helping very obscure US Political Parties...
There are so many Systemic Problems in US Government and US Money Systems ... It is just Revolting.
So Lets Summarize:
1) You have Low Paying Jobs.
2) Wages have been going Down for 30-40 Years (1980)
3) Inflations has been going up at least 3% per Year since 1970.
4) Tuition for College is like 6% Inflation a Year.
5) Medical Costs go up 6% Inflation a Year.
6) Housing Costs go up like 3% a Year if you are lucky.
7) You get no Interest on Money in the Bank.
8) You have No Pension or Retirement.
9) Food Prices go up with normal Inflation, but there are only like 3% of the Employees working in Agriculture since 1960s.
10) Job losses for Agriculture, Manufacturing are over 50% in the last 80 Years.
11) Automation has Displaced 50% of Office Jobs over the last 20 Years.
12) Off Shoring and Out Sourcing has Displaced at least 20% of all US Jobs.
13) And No One Cares that tax Loopholes Allow Wealthy, Corporations, and Even Small Businesses to Skate on the Official US Indiviual Federal Tax Rate. They all Pay less than you.
14) This is all Indicative of a Fascist System!
The Message is you have to Join the Fascist System and you have no Freedom to Act ... let alone think differently!
There is no Choice.
Freedom to be an Artist depends on your Conforming to the Corporate Collective
Freedom Of Self Determination ... is a fantasy ... was a fantasy ... was never Real ... indicates you are immature ... indicates you are undeveloped and uncompliant ... you are a Rebel, but only in the sense of being Immature and Disrespectful ... You must be sent for homogenization.
You are an Asshole Motivated Yet?
I actually do look at numbers, so wanted to post some numbers on this post ... the Pension Crisis will develop over the next 5-10-20 years and get worse. The only thing worse is cuts to Social Security, Medicare, Medicaid, and Unemployment Insurance - which operate as Trusts meaning they have Robust Revenue generated by the decuctions from you Income. They are great programs. These are our safety net to keep us from rioting and keep crime low.
But you should also look at the Government Budgets a little to see how stupid War and Defense Spending is.
I didn't include payments from Treasury for Interest on Federal Debt. We should not pay Banks Interest. The Federal Government creates Money and authorizes banks to create money. Banks are a User of our Fiat, the Government correctly is the Creator-Maker of FIAT. The Federal Reserve is part of the Banking Cartel. This cartel is making you poor, Deflating the Dollar, Inflating the price of Food and Products, and ... they are ruining your savings and retirement.
Defense Vendor Payments 1998 = $95.6 Billion
Defense Vendor Payments 2011 = $394 Billion
DOD Federal Outlays 1998 = $256 Billion
DOD Federal Outlays 2011 = $680 Billion
Department of Education outlays 1998 = $43.7 Billion
Department of Education outlays 2011 = $245.6 Billion (500% increase)
Federal Highway Administration 1998 = $19 Billion
Federal Highway Administration 2011 = $44.8 Billion
Health and Human Services Grants (misc) 1998 = $37.7 Billion
Health and Human Services Grants (misc) 2011 = $101.9 Billion
Food and Nutrition Service (misc) 1998 = $ 13.7 Billion
Food and Nutrition Service (misc) 2011 = $ 95.7 Billion
Supple. Nutrition Assist. Program (SNAP) 1998 = $20 Billion
Supple. Nutrition Assist. Program (SNAP) 2011 = $77.6 Billion
Total Food and Nutrician Services 1998 = $33 Billion
Total Food and Nutrician Services 2011 = $102 Billion
Temporary Assistance for Needy Families 1998 = $13 Billion
Temporary Assistance for Needy Families 2011 = $18.9 Billion
Total Administration for Children and Families (HHS) 1998 = $32.5 Billion
Total Administration for Children and Families (HHS) 2011 = $54 Billion
Unemployment Insurance Benefits 1998 = $23.4 Billion
Unemployment Insurance Benefits 2011 = $117 Billion
Medicare 1998 = $210 Billion
Medicare 2011 = $552 Billion (no price controls)
Medicaid 1998 = $ 100 Billion
Medicaid 2011 = $ 269 Billion
Total Centers Medicare & Medicaid Services 1998 = $380 Billion
Total Centers Medicare & Medicaid Services 2011 = $1.095 Trillion
Federal Salaries (EFT) 1998 = $87.5 Billion
Federal Salaries (EFT) 2011 = $178.4 Billion
It’s called Getmineistan, and that’s where we’re headed, and maybe where we already are.
Lee Adler States in Article Excerp Below. He lays out the problem of low interest rates, Federal Reserve Pumping with QE, and losses in Pensions and Savings... and probably a Food Crisis as money goes into Commodies at some point...
Bloomberg Reports Biggest Story of All Backwards, Saying “Banks Lending Least Deposits in 5 Years” - February 20, 2013 by Lee Adler.
http://wallstreetexaminer.com/2013/02/20/bloomberg-gest-biggest-story-of-all-backwards-saying-banks-lending-least-deposits-in-5-years/ (good long Article with Graph)
"... Bernanke has also historically been in denial that Fed money printing results in massive malinvestment and may drive commodity prices higher, which is what happened in the last round of QE. Ultimately I believe that’s what forced him to pause between QE2 and QE 3/4..."
"....He is also in denial (or simply disingenuous) about the costs of financial repression, or as I call it, ZIRP Bernankecide. Retirees have been driven to the poorhouse and can no longer spend. Conservatively managed pension funds can’t generate adequate returns. Pensioner incomes will be cut. Insurers are being squeezed, driving up insurance costs. The Fed acts likes ZIRP is a win win. But the fact is that it imposes real, painful, and I would say immoral, economic costs, that are at least equal to, if not greater than the benefits that accrue to the Fed’s commercial bank clients. Over the long run, the transfer of the wealth of middle class retirees by suppressing their rate of return on savings in order to liquefy and make the banks profitable cannot be considered a good thing. It’s bad for the economy, and it’s terrible for public morals and mores. Under the circumstances and in view of the fact that financial fraud is never punished, cheating becomes an excusable, even acceptable mode of behavior not just at the top, but at all levels of society. It’s called Getmineistan, and that’s where we’re headed, and maybe where we already are..."
Click for full article - Lack of Savings and overheating Stocking Market will Kill us and our Country.
I can blow so many holes into this, I dont know where to begin. FYI my money earns interest (and i have various other investments) in the bank, which bank do u go to?
I'm not really invested in anything right now ...I still have a bunch of penny stocks, but don't look at them.
The main arguement should be that Individual Savings Account Interest Rates are tied to Prime rate set by the Fed. I'm trying to get you followers to think outside the box here. A policy is only a policy till it is changed. Then your argument should be that Sound banking Policy should be very conservative and should be handled with a lot of care.
But, the US Wall Street banking System proved that it was not Conservtive as US Derivatives exploded around the world in 2007-2008. True conservative Banks did not get hurt by US AAA investments that turned out to be worthless.
So, I'm saying we can pay Interest Rates to Individual Savings accounts of 5% by creating that money out of thin air. After all all US Money is created out of thin air - unless you make a product or sold a service.
Credit= Debt = Money. The US Economy and the US Government depend on debt/credit to continue to operate. Without Debt creation the US government stops working.
Banks create money because the state and federal government allows them to. You get a loan, new money is created. Was there Value provided by the bank who didn't really do anything? Not really. The Bank is just a Middleman getting a cut.
So, why not just create an Interest of 5% for US Individuals who have some money in the bank. We should have incentives to Invest or let the banks lend out our money.
Just like we have tax incentives to own a house, have medical insurance, put money into a 401K or an IRA, or even start a business. I don't really like all the Tax Credits in our complicated tax system, but shouldn't we have incentives to own a house, save for retirement, etc.
Yeah, I get the highest Interest rate of any bank around... I get less than a buck every month.
Conservative Banking disappeared long ago in the USA. Wait, we have small banks and credit unions who are not Investment banks. It is the Invstment Banks that play fast and loose with banking.
BTW we lost $8-10 Trillion in the 2008 Financial Crisis ...so is there harm in allowing savers to earn 5% in savings accounts?
Yes, We Are Dead. Yes, We Are Dead. Yes, We are Dead. Yes, We are Dead. Yes, we are Dead. Yes, we are Dead. Yes, we are Dead. Yes, we are Dead. Yes, we are dead. Yes, we are dead. Yes, we are dead. Yes, we are dead. Yea, we are dead, yea. yea, we are dead yea. Yea, though we walk through the valley of Death, we are Dead, yea. Yea, thought we walk thought the valley of death ... hell we are dead... yes, of yes.. we are dead. Yeah, though we walk through the valley of death... we will fear no evil. We are dead. Yes, we are dead. Yes, we are dead and we live, but we are dead. Yes, we are dead.
we are one. We are dead. We are one. We are the one that is Dead. We are the unholy one that is dead. We are the one that is dead and everyone know that we are dead. But we are dead adn every one knows we are normal and healthy and undead.
You are dead. Some of us aren't.
You guys know anything about figurative death?
I'm thinking about ... death of a psychological kind.
We must die to Capitalism ... in order to be reborn ... into Socialism ... into hate for Capitalism ... into love ... into looking for Love as the Structure to Replace Capitalism.
Well ... go down to the seductive red streets of a foreign country... what do you have?
A new Political Ideaology.
But that is okay. It is not unpatriotic. It is not un-nationalistic. It is not anti-state, or anti-cowboy, or anti-farmer, or anti-country, or anti-conservative... This last part is important.
Conservatives claim the right to most political thought.
Conservitives are wrong about 90% of everything they claim to own.
Not only that. Why am I paying 600 dollars a month just for interest on my home loan, when values are flat or negative for 10 years.
Wow, Yes! I'm Sad. The Whole Money Creation Model is Corrupt.
You might not know the story. Bankers create money from electrons on a computer. They have no abiding interst in the bank Loan. They don't really have a cat in the fight. Bank Loans are just a figure added to a Bank Account. So why not write off bad Loans, or why not write off Accounts that have gone bad for a business.
Per month that is Bull SHTT. I bought a cheap house in the 2000s in a cheap part of town... I feel a little held back by the purchase... it holds me back from moving on. Anyway,... I guess I pay $200 per month almost. Okay I can write part of it off... But this is a small city, and it adds up $2200 dollars a year in
I don't know, this is what happens after forty years of smoking dope?
Was that a Question? If you never went to College, then what are you doing here. Scratch that. I have more college than you ... the issue is not college credit ... and you don't want the issue to be a question of who has the most college credit ....
The question for you is probably, which of us best understands society or people or history or culture. The biggest problem with US people and maybe UK people is Anthropology, Cultural Anthropology.
I can only dominate you ... or guess which of us understands Anthropology better. I'm pretty sure you have never read much history, anthropology, or linguistics. You are an asshole.
This forum is dying because of people like you. It amazes me it hasn't been porn spammed.
You have been here 5 Minutes or what?
Nah - it is people like you - that for whatever motivation - would love to see this forum die. Not gonna happen.
Why do you think people linvest in the stock market - because their CD's won't make any money - at least with the stock market you can get a good return over the years.
As for those who don't invest in the stock market - they are living from paycheck to paycheck and don't have enough to save anyway.
You are generalizing. But I will give you the benefit of the doubt. You can't really know when to invest in the stock market... The numbers are always based on some certain year. Sure I made money in the stock market. Sure I did better than a lot of people by taking my money out of the stock market before the crash.
You have to know and admit that the returns from investing in the stock market are jibberish. It depends on when you get in ... and when you get out. The numbers in the MSM (Main Stream Media for those of you that don't understand) are generalizations ...meaningless. No one really got into the S&P 500 on the 31st of January in 1980. I mean in general. People get in over time, a little at a time, and they get scared, and they pull out, and they go back in, or whatever... Anything they say in the news about the average return if you were invested since 1980 is ...Completely wasted Information or wasted words ... or meaningless jobberish
People who invest in the stock marekte have companies that take their money and invest it for them so they will get a return on their investment.
My wifes 401 K is managed by a company - she invests a certain amount every paycheck and they do the rest - it has grown substantially over the years because she chose how she wanted her money invested.
People invest in the Stock market in different ways. You can get a discount broker and invest in a mutual fund or an index fund and be fairly safe if it invests in quality stocks. That said, I have lost money doing that.
What are the fees you pay for being in the stock market. As I understand it only government type 401Ks are cheap. Their are management fees for each mutual fund, but also there are fees when you sell them off. Even the free Mutual Funds have a cost associated with managment.
We have seen big scandals in company stock investment programs where the company only lets employees invest in their own stock. Doesn't sound like you have to worry about that.
5 Years before you plan to retire or use the money in your 401K you should consider the timing for selling out of risky stock index mutual funds. The reason is the financial panics or crashes cut your savings in half and takes 2-3 years to get the price of stocks back up.
I suppose you are right about the mutual fund your wife is in. I missed out on some money by not going back into the stock funds after the 2008 Crash... The stock funds seem pretty high these days. But I don't want to risk the small amount of savings I have.
Wasn't your wife angry after she lost all that money in the stock market in 2007-2008??? Somone in my family lost hundereds of thousands of dollars.
Of course Perigrine Financial and MF Global used peoples money like Bernie Madoff for their one personal use. Big scandals. And Knight Financial and MF Global were into the high frequency computer trading that allows them to trade and profit with an unfair advange that Investors like your wife might be damaged from.
I think your post shows who the asshole is. Grow up.
Who the Hell Are you.
Educate your Community. Pass Knowledge Every Week. Update the Data every week if you can. But at least Pass the Data or Briefing Charts Every Month.
If you are not passing educational Presenations to your Community ... then you are Wrong! Education is one of the Critical Goals.
I had some Economic Briefing Charts from Website Business Insider this Summer that were pretty good ... they showed how everything that could go wrong seemed to be going wrong including Investment in Small Businesses and Small Business Loans (since 2006).
Briefing Chars should clearly show Linear representations or Graphical Represenations of:
1) Worker Rights or Loss of Rights
2) Individual rights or Loss of
3) Corporate Rights or Loss of
4) Government Power, Agency Power to spend money, to act upon individuals
5) Federal or State Budget expenditures directly spent in each Industry
6) Federal or state Budget expenditures directly to Corporations
7) Government Policies Increased or Decreased toward small business environment
8) Individual Savings Accounts Interest Rates
9) Pension Environment Policies and Social Security Policies
10) Cost controls over Medical Expenses
11) Cost controls over Federal and State Subsidies and proliferation
12) The Size of the Federal Income Tax Regulations
13) The Cost of College and University Education for US Students (Cost Controls)
14) The Number of Foreign Countries we Occupy and have Bases in
15) Treatment of Terrorist or suspected Terrorist
16) Number of Lies told by Generals in Evaluating War Efforts
17) Privacy Protection Laws or Loss of Laws
18) Strength of Employment in Various US Industries
19) Strength of US Wages
20) US Cost of Living or Inflation
21) Total US Money Supply relative to US Population
You probably have another 10-15 based on your economic expertise????!!!
Some of mine are clearly social programs, but that is okay we live in a Mixed Economy with plenty of subsidies already (too many of them go to Corporations or Corporate Welfare!).
BUT what of Cultural Indicators... What about Mega Cultural Trends.
1) Valuing people because they work not for being people
2) Valuing people because they look like they work as opposed to looking like they don't
3) Valuing people because they have money
4) Valuing people because they have the power to hire people for work
5) Valuing/Supporting Corporations for whatever policy since they are employers
6) Providing Subsidies to Corporations since they produce Energy, Food, Resources, or provide jobs
7) Allowing Special Access to Congress for those who are wealthy, Bankers, or business managers
8) Allowing deregulation of Banking since the power to coin money or provide funding is needed by all politicians and Corporations
9) Allowing Leveraged Buyouts, massive mergers, and Monopolies in Industry since the public largely is not aware of the hidden cost to taxpayers, social programs, long-term employment, federal and state budgets, the disadvantage to other small businesses, the loss of full time jobs and medical insurance coverage, and the strain on wages throughout retail stores as the employer of last resort
10) Valuing Money to the point where we are blind to what financial managers have done to our Bloated and Underfunded Retirement and Pension Funds ...partly due to irresponsible executives that granted contracts with such high benefits ...partly due to incompetent and greedy people moving through public and private financial industry
11) Valuing Money to the point where Credit and Buying a House becomes huge corrupt Industries that bring down the whole system.
Great post. Information, information, information. Each one teach one.
Thanks. I felt bad about the tone of the post. I normally don't use the word asshole or even write it anywhere. Working on a New Post ... that builds a list of assumptions ...hope it is helpful. I sort of like to Brainstorm.
zero percent interest is good its about time people earn their own way. if your earning money in interest that means banks are getting rich and a working person is paying more than his fair share!
Not sure I understand your statement.
1) Banks create money from thin air.
2) Banks make money off lending money they got from thin air.
3) debt Collection Companies ...buy your debt for pennies on the dollar ... and collect the full amount from you no matter where you live or where you go ...or whatever bank agreement you have.
4) But their money is free ... your money is hit with interest ... if you can't pay or whaterver ... you can't get discount in most cases ... you will be hit with collections, collection fees, and any other exspense the bank gets hit with.
Thanks for your heartfelt comment Middleaged. Solidarity to you. You speak many truths there.
While I don't tend to think of myself as an "asshole" you may have something here. Worth investigating....
Sorry it is an old Post, Just deleted the A word. Thanks for the repsonse. pass the numbers below around about the massive federal budget.