The Federal Reserve’s policy of maintaining what are essentially zero interest rates since the 2008 collapse is taking a murderous toll on Americans’ finances. A survey by Bankrate.com found that 1 in 4 Americans don’t have a single dollar on hand for an emergency.
But Bankrate claims that’s good, because 24 percent is the lowest level since they began polling in 2011. Still, two-thirds of Americans don’t have enough saved to cover six months of expenses (which is the minimum anyone should have). But again, Bankrate thinks that’s good because it’s the lowest rate in the poll’s history.
Low interest rates discourage savings and harms seniors living on fixed incomes. But it’s a boon to banksters for a number of reasons, not the least of which is it encourages people to spend more and take on more debt rather than save. And the U.S. propaganda machine encourages Americans to spend like there’s no tomorrow.
And they are. Americans are holding more than $1 trillion dollars in credit card debt, another $1 trillion in auto loan debt, and another $1 trillion in education debt.
Studies show that 36 percent of Americans are more concerned about whether they can afford to take a vacation than whether they are saving enough for retirement. Only 32 percent prefer saving for retirement over spending on “things.”
While we encourage Americans to save and not take on debt, we recommend you keep only enough to pay for about one month’s worth of bills in the bank. That will keep the majority of your cash away from the banksters’ clutches if the bank collapses or government decides to give your account a haircut to pay off other banksters.
And since the banks don’t pay interest, you’re better off keeping your cash at home in a safe and converting your holdings beyond six months’ worth of cash into silver or gold. This is not a new strategy, but it is a sound one.
Even wise old Ben Franklin encouraged savings, saying:
“If you would be wealthy,” says he in another Almanack, “think of Saving as well as of Getting: The Indies have not made Spain rich, because her Outgoes are greater than her Incomes.” Away then with your expensive Follies, and you will not then have so much Cause to complain of Hard Times, heavy Taxes, and chargeable Families.”