Saving Money

[theboy2012]

So, I would like to introduce myself to the community and pose a question. First off, a little about me. My daughter was born on Oct 2nd, and everyday I realize the importance of keeping my finances in mind to enable her to have opportunities that I did not. My parents did not understand how to manage their finances or plan for either their or

Comments

[anonymous]

Just one thing. When you examine the national debt... also take into account the assets.

[sexyvanilla]

Your question in general is not an area of interest to me, thus I have not done anywhere near the research you have done.

I dont think that there will be an increase in inflation as a result of money being lent out or held up, because we still keep track of it. Just because we dont physically touch it anymore doesn't mean that it doesnt hold the same value of an actual dollar. The ironic thing is that paper money isn't really worth anything, its just a representation, and historically an easier way of trade.
I would scale a countries worth on assets
(as the above poster said) rather than looking at the current 'money' situation.
When looking at savings, the rumor I heard was that index funds are the way to go. I dont personally use them. If you have any short terms savings goals look into CDs they lock in a fairly hight rate, and you can access them early, if the need should arise.
This isnt one of my better responses, and I am sorry about that. Economics is not my forte.

[meyrevived]

As I read what your research dug up I couldn't help but remember something I read in Winston Churchill's book of World War 2, and the way he described (in Vol. 1,The Gathering Storm) how the Great Depression became what it was. I quote directly from that book but I have to warn you that this is a re-translation back to english from hebrew so apologies for grammar mistakes:

All the wealth which was gathered so quickly in paper value of the past years evaporated. The welfare in millions of American homes grew upon a mega-structure of overblown credit, which was now nothing but a ghost. Aside for speculations (in shares) across the country, speculations which even the most famous banks encouraged by giving easy loans, a massive system evolved for buying houses, furniture, cars, appliances and countless other domestic luxuries by layers upon layers of installments. Everything collapsed now. Great factories were thrown into this chaos and blunder, as yesterday's largest question was that of parking space for all the new cars each worker