It’s already happening here. QE1, 2, 3.
Devaluing your cash by printing more does the same thing.
“...Devaluing your cash by printing more does the same thing....”
Exactly.
Don’t forget “QE to infinity, AND BEYOND!”
“We’re going to keep injecting $85 billion per month until it works”
Let’s not forget the ‘war on savers’ with ZIRP.
The Defamation Of Independence
Mr Bernanke and his colleagues all over the central banking world are well aware of their fundamental problem. If there is one “entity” in all modern societies where the very concept of “savings” is seen as a deadly danger it is government. The act of saving (and access to something WORTH saving) makes for a nation of independent and increasingly prosperous individuals. Such individuals do not look for something for nothing. An individual who can sustain his or her life by their own effort has little need of being “governed” and will not be “ruled”. That makes the job of governance very easy, but the “job” of ruling prohibitively difficult. Since a government does not produce, it cannot “save” in the real meaning of the term. All it can do is to minimise its demand on those who DO save, those who consume LESS than they produce. That is anathema to a government intent on gaining the power necessary to “run” an economy.
The purpose of a “welfare state” is to convince a majority of the people that savings are not necessary. Once a welfare state has been put into operation - as it has been all over the developed world for a century or so - those in power go further. Their new task is to convince their subjects that the act of saving is not only unnecessary, it is dangerous to their “prosperity”. This would seem at first glance to be both a ridiculous and a formidably difficult task. It is. It has taken our “powers that be” a long time to succeed.
But succeed they have. The majority of the subjects of government all over the world have swapped independence for “entitlements”. That act, all by itself, has impoverished every nation in terms of REAL wealth. The higher the pile of IOUs pile up - the greater the impoverishment becomes. - h/t Zerohedge
Exactly: The Q’s and the low interest rates are robbing us every day.
DING DING DING! We have a Winnah!
Yep. The Cypriots resorted to outright confiscation since they can’t print their own currency.
Bernanke is doing the exact same thing in stealth mode by running the presses. My bank savings account (which is getting smaller all the time) earned a grand total of 24 cents last month on a balance big enough to buy a mid-size car.
We are frogs, folks, and they are slowly turning up the heat.
Exactly. And the interest paid on savings is lower than inflation.