Janet Yellen: Savers will have to be Punished 'For Quite Some Time'

[AuH20]

State authorized theft on an unprecedented scale will continue indefinitely. I took the liberty of translating her deceptive rhetoric.

http://abcnews.go.com/Business/wireStory/yellen-signals-continued-support-low-rates-23126435

 

[AuH20]

Take a look at this CNN Headline!!!!!! Could they not be more in the tank for this entire scam??? Raise!?!? What good does a raise accomplish when your fuel and food costs are spiraling out of control?? It's like supplying a group of prisoners with antiseptic after you had previously released a few wolverines into their cell.

http://money.cnn.com/2014/03/31/news/economy/janet-yellen-raise/

HINT. There never was a recovery. So in a roundabout way, she is actually telling the truth.

 

[oyarde]

Yes , this sucks . I have a couple extra K around yet this spring after putting back property tax money , buying seed , equipment repairs etc . Twenty years ago I would have put it in the bank , IRA something .Now ? probably just buy some more fruit trees and put some more fuel back.....

 

[surf]

+rep for translation

edit: how is it that these folks see the fix to the problems of too much debt and too much bad debt as... encouraging more debt?

 

[Zippyjuan]

Yes , this sucks . I have a couple extra K around yet this spring after putting back property tax money , buying seed , equipment repairs etc . Twenty years ago I would have put it in the bank , IRA something .Now ? probably just buy some more fruit trees and put some more fuel back.....

Which actually kinda supports what she said- low rates will encourage more investment in job creation activities. Your buying more trees and fuel helps the grower and the energy seller. They have more money to spend on things and might also hire more workers to help the increase in business. Putting it in the bank doesn't directly create any jobs. Spending it does.

 

[AuH20]

Which actually kinda supports what she said- low rates will encourage more investment in job creation activities. Your buying more trees and fuel helps the grower and the energy seller. They have more money to spend on things and might also hire more workers to help the increase in business. Putting it in the bank doesn't directly create any jobs. Spending it does.

But shouldn't that choice ultimately be left to the individual? Why should they be forced to participate in risktaking ventures of the suspicious variety for the alleged "benefit" of the collective? It's akin to walking into a casino and then having armed security forcing you at gunpoint to partake in the table games.

 

[Zippyjuan]

It is still your choice what to do with your money. You can save it, invest it, spend it, or burn or bury it if you like. Nobody is holding a gun to you. Savings accounts have nearly always paid less than the rate of inflation.

 

[AuH20]

It is still your choice what to do with your money. You can save it, invest it, spend it, or burn or bury it if you like. Nobody is holding a gun to you.

What do you think the abnormally low interests rates are for? That's the proverbial sidearm affixed to the temple of every citizen in this country. And let's not even get started on precious metals manipulation that was already exposed with the Deutsch Bank revelations. Certain entities are actively preventing true price discovery & environment reflective market yields. They're essentially fencing in investors to a select group of financial instruments that they have control over. Close enough exits in the maze and the mice will proceed down the desired pathways. Take for example, the harsh penalties incurred on 401k accounts for premature access.

 

[Dr.3D]

Savings accounts have nearly always paid less than the rate of inflation.

Savings accounts are also robbed from by way of the inflation tax. It's that wonderful way U.S. government has of taking money away from people and most not even noticing how they have been robbed.

 

[AuH20]

Here's the major problem with the Keynesian tyrants running things. They demand full employment (what they term to be 6% or below) as some bizarre moral imperative, yet refuse to relent in terms of loosening the tax codes as well as restraints of the regulatory environment. Why would anyone open a job creating business in this toxic environment? What is the incentive exactly? To be kicked in the ass repeatedly by multiple alphabet agencies before finally filing for bankruptcy?

 

[Zippyjuan]

Savings accounts are also robbed from by way of the inflation tax. It's that wonderful way U.S. government has of taking money away from people and most not even noticing how they have been robbed.

As I said, that has always been the case of savings accounts. Maybe the government should force banks to pay a higher interest rate than the rate of inflation on such accounts? (such accounts would likely disappear if they did).

 

[Zippyjuan]

Here's the major problem with the Keynesian tyrant running things. They demand full employment (what they term to be 6% and below) as some bizarre moral imperative, yet refuse to relent in terms of loosening the tax codes as well as the regulatory environment. Why would anyone open a business in this toxic environment? What is the incentive exactly?

Usually the incentive to open a new business is the prospect of making money doing so. And they do. Even in Russia and China new businesses start every day. The people looking at monetary policy (the Fed) have no control over what the regulators (Congress) does and vice versa.

http://www.forbes.com/sites/jasonnazar/2013/09/09/16-surprising-statistics-about-small-businesses/

1) The SBA defines a small business as an enterprise having fewer than 500 employees

2) There are almost 28 million small businesses in the US and over 22 million are self employed with no additional payroll or employees (these are called nonemployers)

3) Over 50% of the working population (120 million individuals) works in a small business

4) Small businesses have generated over 65% of the net new jobs since 1995

5) Approximately 543,000 new businesses get started each month (but more employer businesses shut down than start up each month)

6) 7 out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years and a quarter stay in business 15 years or more

7) 52% of all small businesses are home-based

8) There were 22.5 million nonemployer firms in 2011 (up almost 2% from the year before)

9) To classify as a “nonemployer” business you must have annual business receipts of $1,000 or more and be subject to federal income taxes

10) Approximately 75% of all U.S. businesses are nonemployer businesses

11) 19.4 million nonemployer businesses are sole proprietorships, 1.6 million are partnerships and 1.4 million are corporations

12) The fastest growing sector for freelance businesses in 2011 included auto repair shops, beauty salons and dry cleaners

13) Total revenues from nonemployers hit $989.6 billion in 2011 (up 4.1% from 2010)

14) Nonemployers had average revenues of $44,000

15) Around 80% of nonemployer businesses for 2011 (or 18 million businesses) reported less than $50,000 in receipts

 

[Anti Federalist]

Which actually kinda supports what she said- low rates will encourage more investment in job creation activities. Your buying more trees and fuel helps the grower and the energy seller. They have more money to spend on things and might also hire more workers to help the increase in business. Putting it in the bank doesn't directly create any jobs. Spending it does.

Quite right.

Saving for anything is fairly pointless, as long as there is a multi trillion dollar government "safety net" to catch you.

Unless, of course...

 

[Lucille]

As I said, that has always been the case of savings accounts. Maybe the government should force banks to pay a higher interest rate than the rate of inflation on such accounts? (such accounts would likely disappear if they did).

Of course a despicable statist such as yourself can't conceive of a world with no central planning. The dumbassery never ends.

In a truly free economy, interest rates are determined by market forces rather than central economic planners.
--Ron Paul

 

[Zippyjuan]

Never said it was pointless.

 

[Dr.3D]

As I said, that has always been the case of savings accounts. Maybe the government should force banks to pay a higher interest rate than the rate of inflation on such accounts? (such accounts would likely disappear if they did).

Well, how about just getting rid of the inflation altogether and leaving the rest alone?

 

[Zippyjuan]

How would you get rid of price inflation (I agree that if you are going to have an active monetary policy it should target inflation instead of trying to do unemployment or both unemployment and inflation since they can conflict- stable price inflation rates makes it easier for business, individuals, and investors make long term financial decisions) ?

 

[Brian4Liberty]

Putting it in the bank doesn't directly create any jobs. Spending it does.

Lol. So jobs in banking are no longer jobs?

 

[acptulsa]

Savings accounts have nearly always paid less than the rate of inflation.

Translation: 'Nearly always' actually means 'since the real dollar was replaced with the fiat FRN'.

How would you get rid of price inflation?

Objection, Your Honor. Asked and answered and asked and answered and asked and answered and asked and answered...

 

[Dr.3D]

How would you get rid of price inflation?

That's easy, just make the Fed stop printing money out of thin air.