When I was a kid, OH so many years ago, I took out a couple of 6 and 12 month CD (Certificates of Deposit) at a rate that I am sure would make most of you fall to the ground begging to see that type of return on your investments. I believe it was 18.75% compounded daily.
The current CD rates at 5% for 6 months and 5.15% for 12 months.
The dollar against the british pound is, if my source is correct, the worse its EVER been.
I don't think interest rates nor inflation has much of anything to do with savings.
Average American:
"Regrettably, the interest rates of 2.499999 rather than 2.551 mean a more marginal return, especially when I consider how my overall invested spending power will be diminished against inflation over time."
"SAVINGS?! I WANNA BUY ANOTHER DANG OL SUV SHUCKS!"
Americans don't save on the whole because we are on average undisciplined and living in a culture of consumerism.
Culture of ConsumerismtheowlseyeSeptember 28 2007, 23:42:22 UTC
The question is does our government create this culture of consumerism, or does our culture of consumerism result in getting the kind of government we have.
Kind of a "what came first the chicken or the egg" question
Re: Culture of Consumerismshane2020September 29 2007, 00:19:51 UTC
The FED knows about lowering interest rates too much. I remember several times during the course of driving pizzas (and listening to MPR while doing so) that the fed would actually raise rates a quarter of a percent or hold them steady etc etc to prevent the economy from "overheating".
For every slovenly commoner who benefits from low interest rates, there is a wealthy man or woman in a suit who has a lot invested who benefits from raised rates. I wouldn't say our interest rates are _crazy_ low or anything.
Speaking of the gold standard, the United States _does_ issue gold coins of gauranteed weight and purity. Their listed face value is $50. However, the gold in them is currently worth around $740.
Now, as we all know, the United States no longer backs EVERY dollar in the economy, probably because this is impossible. Thanks to new inventions, ideas, services, etc etc, there is more value in the economy than we have ounces of gold to reasonable represent it... well, raising the dollar/ounce ratio so high that we'd have to make payments using tiny flecks of gold and a microscope, that is.
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The current CD rates at 5% for 6 months and 5.15% for 12 months.
The dollar against the british pound is, if my source is correct, the worse its EVER been.
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Average American:
"Regrettably, the interest rates of 2.499999 rather than 2.551 mean a more marginal return, especially when I consider how my overall invested spending power will be diminished against inflation over time."
"SAVINGS?! I WANNA BUY ANOTHER DANG OL SUV SHUCKS!"
Americans don't save on the whole because we are on average undisciplined and living in a culture of consumerism.
Reply
Kind of a "what came first the chicken or the egg" question
Reply
For every slovenly commoner who benefits from low interest rates, there is a wealthy man or woman in a suit who has a lot invested who benefits from raised rates. I wouldn't say our interest rates are _crazy_ low or anything.
Reply
Now, as we all know, the United States no longer backs EVERY dollar in the economy, probably because this is impossible. Thanks to new inventions, ideas, services, etc etc, there is more value in the economy than we have ounces of gold to reasonable represent it... well, raising the dollar/ounce ratio so high that we'd have to make payments using tiny flecks of gold and a microscope, that is.
Read more from the US mint about the Buffalo Gold Coin here!
http://www.usmint.gov/mint_programs/buffalo24k/index.cfm?action=AmBuffBull
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