If you are one of those people who were saving to buy a new car; or maybe a fancy week in Europe or some shit like that; my advice is: get to the bank, close all your accounts and SPEND YOUR MONEY NOW!
Several post back I've wrote about some insights of "The monetary system". Once you understand the ways of money supply you'll find out that the system is faulty by design; and everybody knows that if something is designed the wrong way; it should need a replacement soon (take a close look to MS Windows and their "service packs" if you dare to question my logic!)
This is an absolute disaster of unimaginable proportions...
Here's what's going on:
When the government need money, they print a paper (Treasury bonds) and hold an auction for those papers to exchange these instruments of debt with the public; offering various interest rates depending of the time of hold and other particulars...
Simple... In fact; every broker/economist or whoever related to the money field will tell you that the T-bonds are the "safer instrument of investment"....
.. guess what
USA Federal Government is fucked up to the bones; and the investors are fully aware of it; so now, nobody is willing to buy US debt anymore.
So, if nobody lent the money... how they keep on going with their dinosauric deficits?
Answer: The Federal Reserve buy the Treasury Bonds... (please read this post here at Blogging da' Bullshit because I don't wanna re-write a post)
The Fed is pushing 1 Trillion dollars more into the system by buying US government bonds... last time the Fed bought T-bonds was in 1960's.
Concluding a two-day policy meeting, the central bank said it would buy up to $300 billion in longer-term Treasuries to bring down borrowing costs, harkening back to a program called "Operation Twist" that ran from 1961 to 1965.
New money out... made of thin air to create the illusion of wealth.
Question: Where does that new money get's it's value??
Answer: from the one who is already in existence... reducing the purchasing power of every single dollar... leading the economy to the state that nobody want's to talk because it is politically incorrect..
As a side note; The Fed is not part of the government... it is a PRIVATE BANK. It has been a private bank since it's day of opening in 1913. If you are someone like me who like to digg deep; try to find out what the guy whose face is in your 20 bucks bills did with the central bank and you'll start to see some trends here...