Dedicated to Deposits: Deals, Data, and Discussion

Raising Awareness of the Effects of the Fed's Policies

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Yesterday I mentioned how an online petition may help draw attention of how savers are being unfairly punished by the Fed's monetary policies. There's something else that you can do to help. I was contacted by a reporter from a major national publication. They're working on an article on the topic of the Fed's zero-interest-rate policy and how it's affecting savers. They're looking to talk to people about how they are being impacted by the prolonged low interest rate environment. The reporter is particularly interested in finding out whether the Fed's announcement that rates will remain low to late 2014 will impact their spending, savings or investing plans, or if they've made any changes in these areas in the last six months because of the low-rate environment.

If you're interested in being interviewed by the reporter, please email me your phone number (ken at depositaccounts.com). I will forward the reporter your name, phone number and email address. The reporter will likely do the interview over the phone. If they decide to use you in their article, they will probably want to mention your full name in the article. So keep that in mind.

In addition to showing how the low rates are reducing incomes, the article should also show how it's affecting spending. Many economists think low rates will stimulate the economy since it'll spur more borrowing and spending. However, when rates are held too low for too long, people who are living off their savings will be cutting back on their spending. Economists know that you can't just keep raising taxes to raise revenue. When taxes get too high, the revenue will fall. I would think the same is true with interest rates. When rates fall too low for too long, overall spending won't keep rising.


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Comments
29 comments.
Comment #1 by Anonymous posted on
Anonymous
Wow!  Ken this is great!  More reason to let that reporter know you are helping us by putting up a Petition about this on this forum.  Too bad I can't allow myself to be interviewed because my story would have that reporter crying!  However, I know what these low interest rates have done to my life can be duplicated by others on here so I hope they will come forward and be willing to be interviewed.  The more publicity we can get about this, the better chance we have of getting good results!  There is a "light" at the end of the tunnel after all!

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Comment #2 by Anonymous posted on
Anonymous
There's no light as long as Bernanke is there.  We need Ron Paul in the white house.

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Comment #3 by Anonymous posted on
Anonymous
If there were a gold standard again(which there was when honest people were in charge) there would not be worries about inflation and the federal reserve would not be able to debase the currency as they currently do.

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Comment #4 by Anonymous posted on
Anonymous
A petition????? It will do no good and is a waste of time.They dont care. Low interest rates are government policy now. They are down for good......ballgame....over.....done.

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Comment #6 by Anonymous posted on
Anonymous
#4  It's very obvious you have NO idea how politicians think!  Petitions CAN help because without votes, they can't survive!  I do hope Ken ignores the "naysayers" and realizes the Petition CAN help! 

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Comment #5 by Anonymous posted on
Anonymous
How about starting a "Savers against Obama" website to put some politcal heat on the issue during this election year?

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Comment #7 by Anonymous posted on
Anonymous
Another impact of extended low rates is that workers are delaying retirement which in turn is impacting youths who are unemployed because jobs are not being turned over between generations.

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Comment #8 by Kaight posted on
Kaight
Bernanke will no longer be able to hold down rates when he is out of power.

I do worry, though, about Obama's having packed the FRB with Bernanke clones.  Even if Obama is defeated, it will take years to put right the damage he and Bernanke have done.

And do not forget for one instant, it is Bush who appointed Bernanke, not Obama.

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Comment #10 by Anonymous posted on
Anonymous
#8  I posted the same thing in an earier thread about Obama. Im Republican, didn't vote for Obama, and it was the Bush Administration that started all this mess we find ourselves in now.  Defeating Obama is not going to change the Fed Reserve, and the clowns that are left in the Rep Party primary race will not change the Fed Reserve if they were to win, which won't happen until pigs grow wings and fly.

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Comment #12 by Anonymous posted on
Anonymous
#8-Liar. You're not a Republican.....you're a radical leftist. Nice try, though.

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Comment #9 by joe (anonymous) posted on
joe
The zero percent rate guarantees that Grandma tonight has to choose between eating dog food and cat food for dinner while the banksters gather all the wealth.  I'm not a socialist, but I do think it is wrong that the top 400 individuals in this country own 50% of all the wealth.  That means the laws are not for the middle class and that is wrong whether you are a democrot or a republican!

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Comment #13 by Jim (anonymous) posted on
Jim
What is amazing to me is how in the past 60 years the people who have actually ran this country, namely BANKS, POLITICIANS, ect...have put this country exactly where they want it ..and I strongly believe that the actuarians who are crunching numbers know that most americans cant really march or demonstrate against them ... there have been many books movies and documentaries made as to how they continue to do so, but because the american people are so suppressed they are unable to do so.... I have seen a place called CHANGE.ORG that has worked for certain venues...But Can Only PRAY that something good will come of this !

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Comment #14 by Anonymous posted on
Anonymous
The irony of what the Fed is doing is that it may actually be hurting the nascent recovery in housing.  I'm somewhat interested in taking on debt to buy an investment (rental) property.  If I felt like rates were going to go up in the near future, I'd be much more likely to be more active in my search.  When you are renting/leasing properties the appreciation of the property itself is the icing on the cake.  You might make a little each month on the rent, but what you really hope for is that the property appreciates in value.  In a slightly inflationary environment, home prices are more likely to appreciate.  I'd be more willing to pull the trigger on buying a rental if I felt like this were my last chance to finance the purchase at low rates.  The Fed is telling me I have until late 2014 to find and finance my rental, so why should I be in any hurry.  

If the Fed made me feel like rates were going to go up in the near future, I might be more anxious to find and buy a place.  I'd worry that if I didn't find a place and buy it now, I might miss out on the historically low rates.

Irony.

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Comment #15 by Anonymous posted on
Anonymous
Here are two numbers that mey explain why rates are likely not to be raised soon. There are estimated to be 40 million retired persons and 181 million employed persons in the U.S., with the employed at about 4 and 1/2 times the number of retirees. It seems a safe bet thatt most employed persons favor low interest rates especially when the economy hasn't picked up much for most people who are employed. When the economy has picked up some steam for some time, the employed probably wouldn't resist higher rates if inflation was a threat.

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Comment #16 by Anonymous posted on
Anonymous
#15  What makes you think these employed people (those who are still blessed to have jobs) are happy with low interest rates.  "They" are trying to save for their futures and may want higher interest rates so they won't be forced to put their 401K money in stocks!  Now they either risk it or have no place else to go.  What a horrible fiasco on everyone! 

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Comment #17 by Anonymous posted on
Anonymous
#15  Your statistics may be accurate , retired vs. employed, but this is not the crux of the issue. It is a savers issue, and savers range in age from 1 to 101 and include employed and retired people.

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Comment #18 by Anonymous posted on
Anonymous
Go to the cnbc website and read the comments from posters there. When I write something negative about the FED and say how savers are being hurt they jump on me and laugh and say how they have signs in their front yards saying they love the fed. They are very happy that the FED is creating money and taking it from the savers to pump the market. Greed is an ugly thing they only care about the money nothing else, turns my stomach. Reward the people that caused this mess and make the savers and taxpayers pay for it, what a beautiful deal and wall street gets richer.

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Comment #19 by Anonymous posted on
Anonymous
#18:  I went to the cnbc webpage but could not find the blog you are referring to.  The people who feel the way you described probably are not in the category of savers.  They must love the type of welfare society we are heading for and just want the rest of us who don't want to have to depend on others, to just take care of them forever.    I don't think the majority of Americans are like them (I hope not!).  This is why, I feel, it is so important for us to give notice to the politicians and people like these that you encountered, that we will not go down without at least making it known to the world how upset we are with what has happened to the financial system in our country.

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Comment #21 by Anonymous posted on
Anonymous
#19:

The majority of americans are like them in my opinion. Why do you think Ben said he was going to target the stock market, why do you think consumer sentiment is up, they see the stock market up they think that means things are better. All sorts of people are taking advantage of the low rates to refinance to borrow, they are very happy with the FED. The only people that are not happy with the FED are the savers because we are helping to pay for it all.By the way it is on the CNBC site, I fight with them all the time about it, don't want to say how to find it because I know a few of them.

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Comment #20 by Pablo Savin (anonymous) posted on
Pablo Savin
Yes, it is I, Pablo Savin. These rates are a joke. I feel so bad for the older folks living on interest. If this doesn't change the crooked ponzi schemes will be coming out of the woodwork for these folks. all you can do is save more and spend less, if that is possible. You can have a couple of million in CDs and not be able to get by unless you use the principle. Don't be tempted by the market.

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Comment #22 by Jessica (anonymous) posted on
Jessica
This is not a "retiree/senior vs. young person" issue.  #15 is wrong, #16 and #17 are correct.  I am 32 years old and I am getting 0.50% on my money market accts., not much better on CD's.  I am employed, and spend and borrow money.  Still, I'd rather that we had deposit rates that made sense.  I have an IRA that yields peanuts, a 401-K that yields peanuts, and bank accts. that pay almost nothing.  The FED hurts all responsible citizens, young and old.

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Comment #23 by Anonymous posted on
Anonymous
If you had 3.5 million in CDs at 2.25% you would bring in $78,750 take out your taxes and you have about $67,000 give or take. It cost me about $60,000 a year to live and that is not if some out of the ordinary expense pops up. I am not old enough to get social security yet.

Say both people are of social security age and get $22,000 between the both of them. In this case you would need 2.5 million in CDs at 2.25% to come up with the same number.

So why do they try to tell people they can retire on $750,000????

 

 

 

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Comment #24 by Anonymous posted on
Anonymous
Did I accidentally open the door to some "millionaires club?"  They probably came up with that $750,000.00 figure because they are using  a ridiculous 6% interest rate.  The charts I use always use much higher rates than we will ever see with CDs now.  If this were the "olden days" one could have made about $45,000.00 in interest income on that paltry $750,000. figure and if you add in social security you could have lived a nice life.  At least, I sure could have!  Now you are right.  Anyone not having at least a million dollars saved with these rates is not going to be taking those trips around the world!  Also, no one seems to be concerned with the fact that many of us are having to help support an adult child who has lost a job.  Our savings, unfortunately, can't just be used for ourselves. 

 

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Comment #25 by Truthseeker (anonymous) posted on
Truthseeker
Ken,

It is well and good to try to put some pressure by writing Petitions and contacting news reporters to encourage them to write stories.  But, all of that is going to be for naught, if you are really looking for real change.  You are competing with the boyz at Goldman Sachs and JP Morgan, among other casino banks, who give millions every year to politicians, get them to appoint their hand picked candidates (think Bernanke, Dudley, et. al.) to the Fed FOMC, and want the Federal Reserve to have zero interest rate policy and dollar printing as primary policies.

There is a candidate who will help savers, if elected, but not because he particularly wants to help savers.  The policies of Ron Paul would be to close the Federal Reserve, which is the slush fund of the international casino banking cartel, and to force irresponsible banks and other business, no matter how large, to close their doors.  The remaining pieces of those institutions could then be sold off to more responsible hands.

Mr. Paul also wants to return to the gold specie standard.  Under the pure gold standard, Bernanke could NOT print unlimited quantities of free money, and banks would need to compete in the free market for our savings.  That means cash would be King again at times like this, rather than trash.  That is as it should be. 

Prudent people SHOULD have the opportunity to cash in their savings to buy all types of valuable assets from imprudent people, during major economic downturns like this, for pennies on the dollar.  That is the essential process of "creative destruction" that keeps capitalism alive, and once regularly cleaned the economy out, by shifting management of assets into prudent hands.  And, power would shift from irresponsible management to responsible management.  Instead, the Fed has made cash into trash by debasing the dollar and trying to induce inflation to inflate debt away.

You can write your petitions and contact your reporters, but, far more important, you would do two things instead.  Give a contribution to Ron Paul's campaign in as big an amount as you can afford, and vote for him.  That said, the powers that be will probably prevail anyway.

So, you should protect yourselves against being financially destroyed during the ongoing financial repression process by putting a percentage of your money into the safety of real money.  You need to puchase gold, silver, and platinum whenever the manipulators attack the price. 

The Fed, Bank of England, ECB and Bank of Japan regularly subsidize commercial banks by paying them to enter markets, and use newly printed currencies to manipulate and make it appear that precious metals prices are crashing.  This is done in repeated attempts to prop up the worldwide paper money Ponzi scheme.  Such a big manipulation event occurred at the end of 2011.

Big manipulation events are opportune times to purchase hard metal "currencies".  I am hoping for another big attack on the metals will happen before the end of March, so those who missed out when I advised doing this before, may have one last chance.  It may not happen, of course, but, if it does, you should take a minimum of 20% of your assets out of CDs and other foolish paper Ponzi scheme investments, and put it into real money, which are the metals.

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Comment #26 by Anonymous posted on
Anonymous
I think that petitions and interviews are a good thing. But I am going to suggest some things which might be the only way that the Fed and the government will listen. You might want to wait until the election in November, because otherwise whatever happens in the economy is just used to garner votes for the other side, which will then do nothing, either. Whoever is elected in the Fall will have four years to have to deal with the situation, and not be able to exploit it just for the sake of winning.

What I suggest is to defeat the entire plan of the people who run this government for the betterment of the banks. Simply stop spending so much on discretionary items. You don't have to do it forever, just a year or two. Doing that will really damage the economy. Do I want the economy damaged? No, but it already is, in that it is people who are the economy, not the banks. In other words, Bernanke saying that he knows that low rates hurt savers but help the economy, is inane. Even if the economy improves, how does this help savers on fixed incomes? Not one bit. So stop spending, even if you are not retired, and making a lot of money. Then write a bunch of letters to newspapers and news stations saying that you think that there are millions of people on fixed incomes who cannot spend any more money, because interest rates are so low, and they have to save every cent.

The only possible way for the Fed to raise interest rates is if they believe that low rates are hurting the economy, which means their economy, based on macro numbers. "Americans decreased their spending on consumer items for the last five months." That will matter to them. The idiots who run the government, including the Fed, think that people will be stupid enough to start spending money they don't have, and living on credit, like they did for 30 years. That will stimulate the economy. But if people simply refuse to do that, and make it clear that government policies regarding low interest rates are keeping them from spending, something will actually be done. Because if people don't spend, businesses suffer, and this country only cares about business and its profits, not the fate of millions of savers who cannot make ends meet.

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Comment #27 by Pablo Savin (anonymous) posted on
Pablo Savin
You can retire on $750 k. Take 75000 out a year, then after ten kill yourself . The balance will pay for them to cremate you.

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Comment #28 by Anonymous posted on
Anonymous
TRUTHSEEKER is right ....but like i have said before the media and those who actually rrun this country will not give him any time, nor do thay want him in.....GO to the Real Politician...RON PAUL

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Comment #29 by Anonymous posted on
Anonymous
Who is spending??  With these interest rates do we really have enough left to blow?  I think people will always have to use what they have for food, housing, utilities, medical, taxes etc. but who is really just going on vacations, out to eat, etc.  I think that is a GREAT idea that those who are spending do as little as possible except for necessary things.  The poster is right, imo.  We go on strike basically by "only" buying the necessities even for a few months and try to get AARP or another report done on it and we just may get some action from our so called "Fed"!   "SENIORS ON BUYING STRIKE DUE TO FED'S ACTIONS!"

 

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Comment #30 by Anonymous posted on
Anonymous
Look for the Ron Paul fan club, I just think he seems like a "great" person and everyone seems to just love him.  However, he has some extreme views, imo and I can't see him running the mess this country is in!  Too bad!  I will probably do a "write in" vote for him just because I can't with good conscience vote for any of the others, Demos or Repugs!! 

Now WHEN is Ken going to post that Petition??  I know we should have enough people on here to sign it and even the others who are not crazy about it, will probably sign it just to see what will happen.  Sooooo let's get this show on the road.  I am getting poorer by the second!

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Comment #31 by Anony/Paoli (anonymous) posted on
Anony/Paoli
People some of you mention about getting AARP involved etc.  Well, we have been members of AARP for quite a few years and I have yet to see an article written in all the newsletters, magazines etc. they send us.  I was able to get the email address of the CEO from a recent newsletter and I just finished writing to him asking him why ARRP is so silent about this "Zero Interest rates" policy and how it is causing such sufferings to savers and many others.  I asked him if he can and "will" get involved in trying to help his members and others with this matter.  Maybe it was a big waste of time but he needs to know people are wondering "where" AARP is in this matter.  "If" I get a reply or see any articles written about the problem in all the stuff they mail us, I will let you know.

In the meantime, I hope we have not heard from Ken because he is busy putting together our Petition!

 

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Comment #32 by Anonymous posted on
Anonymous
#31 - Nice try, but don't expect anything meaningful from AARP in this regard....to busy sending out membership applications and putting together deals on insurance, hotels, car rentals and anything else that will benefit AARP and the executives. If they would, they could have been very good for us in a substantia way, but they have not and are essentially useless. 

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Comment #33 by Ingrid (anonymous) posted on
Ingrid
AARP is useless.  They just want to sell us stuff.  As an advocacy organization, forget them.

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Comment #34 by Anon/Paoli (anonymous) posted on
Anon/Paoli
#33 You seem to forget that AARP can't sell "stuff" to seniors who are mad at them for not trying to help them!  Politicians need our "votes" and AARP wants us to "buy" from them.  As long as they both have a "need" for us (whatever it is) we stand a chance of getting help.  Not trying is not an option for me.

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Comment #35 by Anony/Paoli (anonymous) posted on
Anony/Paoli
I have a very important question.  If we sign a Petition on the internet, what happens to our "privacy".  I like the idea that we can keep our privacy by using "pretend" names.  Paoli is certainly not my real name. But will we all get to see the names of every one who signs the Petition as Ken is planning on doing it?  Just wondering because I have seen terrible things happen to people when others had access to who they are and where they are.  Thanks for any advice because I do want to participate in the Petition.

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Comment #36 by lou posted on
lou
If a petition is going to have any value, i would think it would be necessary to sign our real names. I agree with another poster who suggested it should go to every member of Congress, President, Bernanke and all members of FOMC.  I wonder if anyone has any ideas how to maximize the number of signatures on this petition. The more the better. If members of Congress realize they may lose millions of votes if the current policy is not changed, I believe they would pressure Fed Reserve to change this suicidal zero interest rate policy. If Bernanke becomes convinced that he has lost the support of Congress, I think he would become more flexible even if he wouldn't admit it publicly.

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Comment #37 by Anonymous posted on
Anonymous
Lou:  I have your same concern about how many signatures we can get from just our group, unless Ken has other avenues open where the Petition can be seen.  That is why I was hoping we could also post it on a site like IPetitions which may have more people checking it out and willing to sign our Petition if they see it.  We do need more exposure for our Petition or ways to let the public know it's on our forum so they can sign it, if they are in agreement with it. Just my thoughts.

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Comment #38 by Shorebreak posted on
Shorebreak
Chales Schwab should author a petition...

http://www.fundmymutualfund.com/2010/03/ben-bernanke-content-to-sacrifice.html

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