Comments on: The victims of low-interest locusts http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: keebo http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1632 Tue, 14 Aug 2012 17:38:50 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1632 Ours is a market economy polluted by communistic and socialistic ideals. Greenspan said he believed market forces correct market imbalances, and then went on to counteract market forces concerning interest rates. This is because the institution he headed gave his bloated ego the power to ignore market forces and corrupt them instead.

Talk of political neutrality concerning the Fed is a farce. It is an institution created to manipulate market forces; run by people who at all times react to their mandates created by politicians. The political aims of these mandates are to pacify the population and business community at large concerning “action” on an economy not behaving as desired. Our society has gotten what it deserves in the way of an economy in collapse with those in the Fed playing the same tricks that got us here.

Social Security, another political creation, has also given us what we deserve – social insecurity. Where is a sense of personal responsibility? The mass of people want their politicians, whether scum of the earth dictators in China or idiots in Europe or America, to give them what they want or it’s off with their heads.

The difference in America is the individual has an opportunity to defend against “the many” and the “leaders” through his or her own actions. The mechanisms of that defense, free markets and the legal system, have been attacked by socialist/communist dogma and the political lackeys of that dogma. It would be nice to see the American Dream of free markets and the legal system survive that attack.

We in America have freedom and are able to defend it through a system of laws where the people do have a say in their creation and a potential for self-defense. China instead has a weak political system, afraid of freedom, made up of weak political leaders who hide their lust for illegitimate power and its exercise behind the skirts of social stability – how incredibly self-serving and pathetic.

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By: 123456951 http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1631 Mon, 13 Aug 2012 16:25:08 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1631 The full impact of low interest rates on savings still has not occured yet. I was fortunate enough to purchase 5 year CDs with my savings during the past few years. I even have one CD that I am still getting near 6% on through the middle of 2014, but more recently I have had to renew the others at far lower rates. The question for myself is what to do with CDs that continue to come due. Stocks? Gold? Real Estate? My feeling is that stocks will stay about the same, maybe increase slightly, but is the risk worth it? My feeling is No. How about gold? It would not surprise me to see gold fall to $800 or so. Real Estate? In the long run it may be the best investment, but it bothers me that real estate prices are being held artificially high by low interest rates. There is no question that savers are being punished.

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By: 123456951 http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1629 Mon, 13 Aug 2012 16:13:53 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1629 The full impact of low interest rates on savings still has not occured yet. I was fortunate enough to purchase 5 year CDs with my savings during the past few years. I even have one CD that I am still getting near 6% on through the middle of 2014, but more recently I have had to renew the others at far lower rates. The question for myself is what to do with CDs that continue to come due. Stocks? Gold? Real Estate? My feeling is that stocks will stay about the same, maybe increase slightly, but is the risk worth it? My feeling is No. How about gold? It would not surprise me to see gold fall to $800 or so. Real Estate? In the long run it may be the best investment, but it bothers me that real estate prices are being held artificially high by low interest rates. There is no question that savers are being punished.

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By: AdamSmith http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1628 Sun, 12 Aug 2012 22:09:12 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1628 @TheUSofA – Well said.
@TheOldSodbuster – Well said.

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By: AdamSmith http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1627 Sun, 12 Aug 2012 22:06:47 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1627 @TheUSofA – Well said.
@TheOldSodbuster – Well said.

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By: AdamSmith http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1625 Sun, 12 Aug 2012 17:11:47 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1625 @TheUSofA – Well said.
@TheOldSodbuster – Well said.

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By: possibilianP http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1623 Sat, 11 Aug 2012 16:45:54 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1623 The federal reserve basically has only 2 tools to govern the economy with: the money supply and interest rates. When the interest rate goes to zero, and the economy no longer responds, that is a condition known as the “Liquidity Trap”. We are now in the Liquidity Trap, and the Fed is basically in a position where it no longer stimulate the depressed economy. At this point, the government is supposed to step in and start building roads and infrastructure, but they don’t because present day Calvin-Coolidge/Herbert-Hoover’s (like Paul Ryan) have the idea that we should pay off the debt in the middle of a depression. That’ll surely fix the economy – NOT. And it didn’t fix it in the Coolidge/Hoover days either.

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By: possibilianP http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1622 Sat, 11 Aug 2012 16:45:53 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1622 The federal reserve basically has only 2 tools to govern the economy with: the money supply and interest rates. When the interest rate goes to zero, and the economy no longer responds, that is a condition known as the “Liquidity Trap”. We are now in the Liquidity Trap, and the Fed is basically in a position where it no longer stimulate the depressed economy. At this point, the government is supposed to step in and start building roads and infrastructure, but they don’t because present day Calvin-Coolidge/Herbert-Hoover’s (like Paul Ryan) have the idea that we should pay off the debt in the middle of a depression. That’ll surely fix the economy – NOT. And it didn’t fix it in the Coolidge/Hoover days either.

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By: possibilianP http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1621 Sat, 11 Aug 2012 16:45:51 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1621 The federal reserve basically has only 2 tools to govern the economy with: the money supply and interest rates. When the interest rate goes to zero, and the economy no longer responds, that is a condition known as the “Liquidity Trap”. We are now in the Liquidity Trap, and the Fed is basically in a position where it no longer stimulate the depressed economy. At this point, the government is supposed to step in and start building roads and infrastructure, but they don’t because present day Calvin-Coolidge/Herbert-Hoover’s (like Paul Ryan) have the idea that we should pay off the debt in the middle of a depression. That’ll surely fix the economy – NOT. And it didn’t fix it in the Coolidge/Hoover days either.

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By: Boat52 http://blogs.reuters.com/david-cay-johnston/2012/08/10/the-victims-of-low-interest-locusts/#comment-1620 Sat, 11 Aug 2012 11:47:57 +0000 http://blogs.reuters.com/david-cay-johnston/?p=403#comment-1620 Time for a regime change at the rogue Fed. Destruction of the life style of a broad set of citizens is not part of their mandate. The sooner Bernanke and Company are replaced the better. No republic in history had an fiscal and monetary policy like the U.S. currently has and done well economically. It doesn’t take a genius to understand that.

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