Americans, we are told over and over, spend too much and save too little. Nowhere in this harangue will the dearth of incentives be mentioned:
According to the government inflation is running about 3% a year. According to me it’s more like 6%. But stick with the government numbers. If inflation is running at 3% and ING is paying 0.85%, then you are losing 2.15% on your money every year. That’s like paying ING $215 to hold onto your $10,000.
The Fed, of course, wants to keep those interest rates as low as possible, so as to make it possible for the government to continue to spend too much and save absolutely nothing. And I suspect they’d much prefer that we did the same, so as to “stimulate the economy.”
Here’s my own stimulus program:
- Build, as Newt Gingrich suggests, a base on the moon.
- Move the Federal government to this base.
- Activate the self-destruct mechanism on the vessel, making a return trip impossible.
Prospects should improve literally within days.