For the first time in over TEN FUCKING YEARS!
If you were fortunate enough to have some money in a bank, it’s been getting eaten up, year after year, by inflation.
The money amount is still there but the buying power is getting chipped away.
Fucking banks are literally paying .01% interest while the inflation rate has been 3-4%
Fed clambers back to positive real rates, now debate is when to stop
Howard Schneider
WASHINGTON (Reuters) – The Federal Reserve will likely raise its target interest rate to above the rate of inflation for the first time in a decade next week, igniting a new debate: when to stop.
You can read the rest by clicking on the headline.
I haven’t seen an inflation rate below 8% on the chapwood index. Mine is 8.8 in south Texas. I took a 5% pay cut to help my company out in 2008 (involuntary), barely got that back, then had my wages frozen in 2013. No raises, got re-org’ed into a lower pay bracket, and I’m above the top pay tier. No more raises…. Our company stock went from 40 per share to 200+ per share in the same time frame….
Inflation is hollowing out my paycheck faster than anything….
LikeLike
The officially sanctioned thievery is finally coming to a halt, at least temporarily? That’s good. How very thoughtful of the Fed to lift the boot off of my neck.
Physical injury, literal starvation, homelessness, imprisonment, poverty and isolation – personal and financial ruin – in return for 20 years of active military service has taken a toll on me. I’m just a little bitter.
I’ve never drawn a dime of Social Security or unemployment, despite all the rosy, comforting assurances of the Nanny State.
But they’ve never hesitated to take their cut from my paycheck – never even waited until it was deposited in the bank – before they dipped their electronic claws into my pocket.
Nice of them to let us breathe, ain’t it?
LikeLike
Tis is somewhat OT – but there’s a real nice car waiting for you 😉
https://notwende.com/2018/06/06/somethin-fo-u-phil-😄/
LikeLike
Banks will still pay less than 1% interest on savings accounts and CD’s (certificates of deposit), while gouging us with 10% Mortgages and 25% Credit Card rates. Potential consumer financial happiness: nil.
If you ever seem a banker or an insurance salesman crossing the street, DON’T BRAKE!
LikeLike
Yep. If the Fed is making a change, you can best believe it’s for their benefit, not us peasants.
LikeLike
The damn bank won’t even approve a car loan for me. If I see a banker or insurance salesman, I’ll just have to clout him/her/it with a rock. Those are still cheap and plentiful.
LikeLike
I’m cynical enough to believe that this is the deep state getting revenge on the peons who were so ignorant as to vote for Trump. After all, if the interest rates go up on them, it’s only what they deserve, and I remember the interest rates of the 70’s. Until now they were keeping the calculated rate of inflation artificially low, so Gov’t payments tied to the rate of inflation didn’t go up.
For those who work, this is a form of the Washington Monument Syndrome), and you’ll feel the pain in your wallet. Maybe in the future, “you’ll have the sense to not vote against your own interest.” It also allows the deep state to blame Trump for the increase.
For those receiving the Gov’t payments, “Look at how good we are, increasing your COLA, and by the way, vote for us. We’re looking out for you, unlike those nasty people who want you to starve & die.”
Peter makes a very good case that over the last 17 years, there has been a 200% increase in the prices of real goods, as the result of a 10% (or more) real rate of inflation. It’s what happens when monopoly money has to pay for real goods. The amount of monopoly money required goes up.
LikeLike