Banks. That's Where the Money Is.
Fed: CDs. That's Where the Money Is
it's now apparent. American insured savings accounts were FDIC insured
up to $100,000 against everything except Alan Greenspan and his
(wink) "Federal Reserve" – a government created monopoly
insured Certificate of Deposit of $50,000 today, earning the 1-year
average interest rate (2.04%) and shrinking by a disclosed Congressional
banking committee inflation rate (12%) will be worth $45,020 one
year from now, before taxes. At the same time, prices and inflation
continue to rise.
such as Wells Fargo, who are reporting hefty "earnings,"
were not asked by Mr.Greenspan to help shoulder his "economic
boost." Enjoying deregulated good times, they make more interest
profit on loaning out savers' money (property), than savers do on
owning the money.
Mr. Greenspan, that government protected old fox, is expected to
enter the counting shed once again for his twelfth consecutive raid
on savers' nest eggs, stealing the eggs, and the nests as well.
so? As said, the average 1-year interest earnings on a CD is 2.04
percent (internet bank report 1-02). Core rate price inflation is
3.5 percent – per "government math," of course. Actual inflation – measured
by your pocket calculator – has been running 12 percent as revealed
by Congressman Ron Paul of Texas, a member of the House Banking
Committee speaking at a meeting of the Center for Libertarian Studies
in San Mateo, California.
at the same time savers' rates are being driven down, Mr. Greenspan
has been watering down savers' hard-earned principal by inflating
the money supply – pouring 8 percent more fiat money into the economy
per year, according to data from economist Gary North.
data presented to the U.S. House of Representatives by Congressman
Paul on September 6 reveals that "True inflation, measured
by the money supply, is rising at a rate of greater than 20 percent,
as measured by MZM (MZM is a money measure used by the FED to track
money supply in its "system)."
really, it wasn't the Grinch who stole Christmas 2001 – it was the
FED. By raiding Mrs. Jones' Christmas savings account to provide
cheap, economy boosting loans to its stock market friends, it crippled
the consumer. Mrs. Jones just didn't have the money.
course, Mrs. Jones could have spent her shrinking principal (or
borrowed), as Mr. Greenspan wanted, and hoped later for government
alms to stave off the bear at her door. But, Mrs. Jones didn't buy
and author James Brovard points out that because of Mr. Greenspan's
actions some retirees who use their small interest and IRA earnings
to supplement their "Social Security" are losing their
homes, unable to meet the mortgage payments.
security, says Brovard, these folks sacrificed higher returns for
20 years to avoid the risk in stocks and bonds: Now, Mr. Greenspan,
by interest manipulation, is trying to drive them into risky schemes
at a time in their lives when they no longer have the years left
to recoup losses.
was "faith in the system" that fueled the average American's
confidence to "save for a rainy day." It was this faith
that made thrift a way of life for generations, that fueled lifetime
investments in free enterprise. It was faith in our economic history
that allowed Ben Franklin to postulate, "A penny saved is a
penny earned." It was the same faith that made America, as
Mr. Brovard points out, a nation of savers, not players in the stock
in the system is now in jeopardy – thanks to the government corporate
cabal and its mouthpiece, the FED, and by the President, who appoints
the FED chair. Rules have been changed; terms have been redefined.
Personnel and professionals now are "human resources,"
savers are "human capital," and investors are "human
stock", i.e. sitting ducks, fleeced sheep, skinned rabbits,
plucked chickens, corralled cattle…
The famed Nobel Prize economist F.A. Hayek said that when government
planners intervene in money markets they must choose between the
interests of some individuals and groups and the interests of other
individuals and groups.
the end," he wrote in his classic book u2018The Road to Serfdom,'
"somebody's views will have to decide whose interests are more
important; and these views must become part of the law of the land,
a new distinction of rank which the coercive apparatus of government
imposes upon the people."
"watchdog" press obviously agrees with the Fed's selection
of winners and losers. What's more, from business pages to talk
shows to the nightly news, each Fed rate cut arrives as "good
news" for all, omitting the embarrassing possibility that not
everyone benefits. The only point to consider, muse the pseudo sophisticated
news hounds, is "did the Fed go far enough on this one?"
internet bank report (1/2/02)
for Rational Economics and Education, "The
U.S. Dollar and the World Economy," address by Rep.
Ron Paul (R-TX) before U.S. House of Representatives. 9/06/01
on a String?" by Gary North, LewRockwell.com
Law, Pareto's :Law, and Greenspan's Dilemma" by Gary
with James Brovard, KSFO Radio Host Brian Wilson
Francisco Chronicle, Business Section, 1/1/02, pg B2, "Christmas
her mail] is a writer in California.