In my simplistic opinion, I think creative accounting and spin has allowed the government to cook the books to fit bureaucratic needs. The use of Core Consumer Price Index, which does not figure in the cost of food and energy, is one way used by the feds to determine whether adjustments to the interest rate is needed.
It’s amazing to me, but down on the “pore farm,” food and fuel are two of the biggest ticket items in our lowly budget.
With all the economic troubles in Europe, I read that Cyprus struck a deal with its European Union overlords bailing them out by reducing deposits by 40% on all individual accounts over 100,000 euros. Life savings of uninsured depositors will be literally wiped out.
Think this can’t happen here in America? I see it already in work. The hard won savings that Helen and I have are being eaten away daily by unreported inflation and essentially zero interest on deposits. These artificially low interest rates are nothing more than an unlegislated tax on saving accounts with seniors taking the brunt.
If this continues, individual savings on deposits will be worth less than half of face value in 10 years. Washington, we have a problem down on Route One Millsap.
Larry M. Jones is a retired Navy commander and aviator who raises cattle and hay in the Brock/Lazy Bend part of Parker County. Comments may be directed to firstname.lastname@example.org.