Wednesday, March 4, 2015

Reason # 6: End the Fed, Stealing From Pensions and Savers

The point-two-five interest rate that the Federal Reserve charges banks for money not only benefits the recapitalization of banks and allows speculation by hedge funds, banks and financial institutions, but at the same time, it steals from savers, investors and pensions.
The collateral damage done to those people demonstrates the true identity and purpose of the Fed. The crisis revealed who they will help regardless of false claims of "too big to fail" as a stumbling block. Their hidden purpose is to protect the banking industry and every time that the banks screw up, they have fulfilled their aim.
On the other hand people who save are the grass roots of capitalism. People deposit their savings. This money can be loaned to build schools, hospitals, factories, whatever. This is fundamental to a free economy society. This is where capitalism works positively to benefit the general welfare as envisioned by the founding fathers. It is not working today.
On the Other Hand
the Fed has destroyed these people by offering the manipulated negative returns. How can anyone hold a straight face while at the same time offer you a return on your money of 3% for 30 years when by their own stats, inflation is running at 1.7% per year. Pensions like to buy US Treasuries because they are safe and it supposedly, helps the nation. How can you tell your workers who contributed to the system that their money is worth less than when they subscribed at the beginning of their work career? How can the elderly get by on $400 interest on $100,000 saving bond? Can you live on $400 a year? This is yet another reason why I say, End the Fed! 

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