Quote:
Originally Posted by macker
With US politicians spending trillions of dollars that they don't have they clearly don't seem to understand the problem that they have. The combination of massive spending and massive printing spells disasterous consequences for hard working, honest savers. Right now what the Federal Reserve is doing is ruining an entire class of people. How can a saver truly save when the Fed is destroying savings and there is no yield to be found as rates are being artifically suppressed. As the Fed continues to print money your only choice is to own real assets that may depreciate but likely not to the same degree.
The Fed claims to be on the sideline but ready to print more money but this is not the case and they are lying as they are in the market right now. All you have to do is look at the Feds own charts which don't lie.
http://research.stlouisfed.org/fred2/graph/?id=M2
Heard Paul Volcker and John (Jack) Bogle speaking on this today and I would feel a lot better about the outlook for the US and the markets in general if these two 80+ year old farts were in charge of things. |
You have to seperate the long term from the short term in this, the policies that the US needs to follow in the long term, massive budget cuts plus tax raises to clear the deficit and reduce the debt will screw them in the short term by destroying an already shacky economy in a weak world market, in the short term keeping the money supply flowing and people spending money allows the economy to hopefullly streangthen with its associated increase in employment figures.