How long can this go on? At 2.9% price inflation per year, in 25 years, the dollar will lose half of its purchasing power. (The “rule of 72.” Divide 2.9 into 72.) At some point inflation will rise, interest rates will rise, and savers will still be behind the eight ball.
This is crony capitalism. This is what Reagan’s ex-budget director David Stockman calls the Great Deformation. He saw it coming. He resigned.
The financial system is rigged by politics to squeeze out the common man. The common man senses that something is wrong, but he does not know what.
I will tell you what: Keynesianism, which is funded by the Federal Reserve System.
via Hopeless Savers: 0.26% on Money Markets : The Tea Party Economist.