Obama believes that "all spending is stimulus,"
that the national trend to save money during recessionary times is
self-defeating. Ben Bernanke believes this as well.
Artificially low
interest rates accomplish two things: it supposedly helps to maintain the
flow of cash during recessionary periods and, it discourages folks from saving
their money (because of the lower interest rates -- below
inflation) , forcing them to spend their cash on something other than savings. Obama and company want you to spend,
spend, spend. He has even said, "Now is not the time to
save" (back in 2009). It all goes
to the idea that “ we can spend our way out of this recession,” and not only that, we can spend our way out
of debt.
As result of this bit of genius,
the debt continues to grow, the
ratio of GDP to debt continues to worsen and
the percentage of borrowed money
per “a dollar spent” has increased to 42 cents on the dollar (yes,
we overspend our income by 42 cents for every dollar
spent).
Point of post:
just to remind you of two things:
first, this business of interest rate manipulation is
preventing folks from saving money,
something that is thought to be a “right wing, nutcase” idea,
now-a-days. Secondly,
the notion that low interest
rates will loosen up the giving of credit is not working, either.
Businesses are hording this cheap money,
both domestically and overseas.
Anyway, my wife and I have cut
up our credit cards (a few years ago, actually) and I now keep my “extra” cash
at home, not in the bank. What is so cool about that, is the fact that when I get to the $10,000
mark, I can go spend that money, if I chose,
without having to report a “ten thousand dollar withdrawal” to the
Feds. I paid taxes on this money. Why should I have to report to the stinking
government? Guess what, I don’t have to . . . . and I am following the rules. Buul-ya !!!!
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