The Fed announced two months ago that they would drop America’s key interest rate to .25% giving America the unique distinction of having the lowest interest rates in the world. In addition, although Congress is still wrangling, they will soon pass one of the largest spending bills in the history of the nation, wrapped up in a bow and called economic stimulus. Although, it sure smells like pork. These two events have one key thing in common – printing more money. In fact, the United States will begin printing money at an unprecedented rate, not just in the history of our nation, in the history of the world.
Ultimately, I believe these policies will fail. Furthermore, their policies are designed to promote consumption and penalize savings. I refuse to fall into this trap. I believe that saving money is always prudent, and in these economic times, even more so. There in lies the dilemma. If I want to save money, where should I do that? Read More