Quote:
Originally Posted by DAVES
I am thankful that I do not make the decisions. Most people, whoever they are, owe more than they have saved. So inflation is their friend. Most people-the biggest debtor is all of us-the national debt. The national debt last time I looked 28 Trillion dollars.
We talk about that number over and over again. How many besides me realize, face reality that we do no comprehend what one Trillion is let alone 28 of them.
The ten year treasury is now paying about 1% with 2% inflation, the fed target they are
as we blink stealing half of what you are being paid.
We are so distracted fighting each other that we are blind to reality.
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Very good post, until the last few years the Federal Reserve had a longstanding monetary policy that they attempted to set interest rates so that savers earned a real rate of return above the rate of inflation. Our nation was not addicted to debt anywhere near how it currently is. That has all changed, individuals, corporations, and our nation are all up to their eyeballs in debt, savings are at all time lows, and interest rates are near zero. We are in an unsustainable bubble that keeps growing, and the longer we let it grow, without making some hard choices, the worse it will be when it bursts. Our children and grandchildren are not going to have it nearly as good as we enjoyed. Our national debt is currently at about 100% of GDP and growing exponentially as we enter indebtedness levels of countries like Greece and Italy, not good : (