Why Savers’ are Losers’

How can this be? From past generations we are taught to put something aside for emergencies, and/or save for a rainy day. This was good advice for the times past, but not anymore. A bank savings account could be opened, deposits made, and a regular interest payment made to us for being fiscally responsible, but that is not the way to go about getting a return on anything in todays climate of low investment returns.

In 1971 when the gold window, was closed for good, our money could no longer be held in check and became fiat currency. The amount of it in circulation could be expanded and contracted at the whim of the Federal Reserve resulting in the boom and bust cycles we have come to expect today, all for the purpose producing winners and losers in the markets. Therefore, with our dollars becoming a debt instrument, it has no worth for saving just spending. If it is not used today, it has less of a value tomorrow. This is why savers have become losers.

When savings were held in a bank with the trust of its depositors this was the capital that was used to invest in our economy. The capital that was to be used for starting a business, growing a business, and other investments that would increase production. This would result in a greater prosperity for everyone. As a way of encouraging individuals to place their money in the bank for this purpose, a satisfactory return was to be expected, but this no longer the case. Receiving 1 or 2 percent to park my money in a savings account is completely foolish today and, if this is the case how are capital investments made to keep the economy afloat? This is done by fractional banking, where banks need to keep smaller amounts of depositors money, making loans on many times the amount it is holding. All the while paying savers the smallest possible interest in the process.

If the interest I would be paid at a bank is so low, why would I even bother to allow a bank to use my money? I would be better off keeping it to myself. However, just like anyone, a desire to increase your wealth and be able to prosper should be a goal. How then is that possible if you will not be using a bank to hold your money? Simple, become your own bank. You need to hold your cash in an investment that will protect your wealth. It will not have a monetary interest paid but, will always increase in value. So, a saver does not need to be a loser, just find the right asset to save in. Try REAL MONEY, Silver and Gold!

Roger Dowe

850-405-0193