And THIS is how it is screwing all of us!
Here’s the Fed’s game plan in each game. In the domestic economy, the Fed aims to save its Overlords in the banking sector by giving them unlimited credit at zero interest (ZIRP). The banks are free to speculate with this money and earn a higher return. This dynamic—unlimited free money at zero interest—is designed to let the banks “earn” their way of their insolvency.
But that zero interest policy is robbing the citizenry of hundreds of billions of dollars annually. Banks were once required to pay 5.25% interest on all savings accounts. People who saved for retirement could expect to earn at least that on their capital. Thanks to the giveaway to the banks, they now earn basically nothing.
Zero interest is nothing but a transfer of wealth from the citizens to the Financial Power Elites in the money-center and investment banks. Please note the bankers divided up $144 billion in bonuses last year, despite their insolvency. That buys a lot of politicos—basically all of them.
http://www.oftwominds.com/blogoct10/loss-of-trust10-10.html
I'd add, though, that there's no reason why you and I couldn't do the same thing.
In fact, I'm doing it right now. Last year I took out a pile of money in my 401(k) account from my U.S. bond fund -- which was earning very little interest. I drew this money out of the 401(k) as a loan with a very low interest rate.
I used this money to help finance a business start-up. The loan is paid back to MYSELF (my own 401k account) -- and the interest is tax-deductible because of what I'm using it for.