What Are You Teaching Your Kids?

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Recently
by Simon Black: It's
Time To Ce Very Concerned About What's Going on Behind the Scenes

I had a little
piggy bank when I was kid. It was blue. And ceramic. In fact, I
think I broke its nose off at one point and I was really sad about
it. Most of all I remember loving the sound that the coins made
when I dropped a new one inside.

That unmistakable
chink spoke volumes to me. It reinforced my responsible behavior,
and it encouraged me to keep saving. This is something I’ve
carried with me for my entire life.

Today things
are different. Central bankers have proven that conventional savers
are mere patsies to be taken advantage of, sheeps to be fleeced.

With Ben Bernanke
announcing that interest rates would remain at zero for the next
2 years, saving money in conventional ways has become a completely
irrational choice. Based on the way that the government used to
calculate inflation (a much more realistic approach than today),
you’d be losing 7% annually in buying power.

Not to mention,
the bank where you’re keeping your money is probably insolvent
and can’t sustain itself without the constant aid of the federal
government.

This is a long
way from that chink chink sound in a piggy bank. It makes me wonder
– what do people teach their children about money these days?

I have to imagine
that any child watching the goings-on of American politics would
conclude that:

  • debt is
    wealth
  • living beyond
    your means is completely sustainable
  • if anyone
    tells you otherwise, denounce their mathematical errors
  • if at first
    you don’t succeed, keep trying the same thing over and over
  • working
    hard and saving money is bad
  • spending
    money and not working is good
  • if you have
    a problem, the government will bail you out
  • people are
    entitled to things that they didn’t work for
  • no one should
    be held accountable for the consequences of the risks they take
  • it’s
    not illegal if the government does it
  • despite
    what our eyes and ears tell us, inflation is not a concern
  • everything
    is going to be OK simply because the government says so

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