Federal Reserve moves to impoverish American Seniors

In the past two weeks -- in order to protect the banks from going bankrupt in to the recent stock market sell-off -- the Federal Reserve has moved three times to raise liquidity by lowering interest rates. In doing so, they have pushed the yield on U.S. Bonds (and CDs) down by almost one full percentage point. This is great news for the loan sharks in charge of the predatory lending schemes practiced by many mortgage banks.

But what does it do for the people who have worked hard all their lives and saved some money on which to retire ? It cuts their income by approximately 20%. And this could be only the beginning.

Thanks Bernanke ! Thanks Bush !

but too feeble or wiley in your old age to be exploitable labor, the American Oligarchy just wants you to wander off into the wilderness and die. Maybe in a few eons, your body will be oil they can burn.

They sure as hell don't want anyone with some perspective born of time to be around to impart some wisdom on the young worker bees coming up.

The rates are going lower because of a flight to safety. The Fed has not lowered the prime rate.

Aside from that, let's talk facts.

Below is the yield on the 5 year Federal Note for the past three months. You can see it was about 5% in mid July. With the efforts of the Fed it dropped to almost 4% last week. That drop reduces the income a retired person gets from his savings by 20%.

http://chart.finance.yahoo.com/c/3m/_/_fvx

Here are some more facts --

Fact #1 is that on August 15, the Fed dumped billions of dollars into the banking system in hopes of shoring up the stock market.

Fact #2 Last Friday Aug 17, the Fed cut the funds rate. that helped save the market from further damage.

Fact #3 The Fed Funds Rate is the overnight interest rate at which U.S. banks lend to each other their excess reserves held on deposit at the U.S. Federal Reserve. That is what the Fed cut. Not the Prime.

Fact #4 The Discount Rate is the overnight rate at which U.S. banks can borrow from the U.S. Federal Reserve. That is what I hope the Fed does not cut in September.

Fact #5 The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually business customers). The Prime rate differs from bank to bank. Your bank may charge more or less than mine.

I certainly hope that when you retire, the safe - income producing markets will look better than they look today.

of the economic fruit being borne now and hereafter.

the ensuing inflation from all the money they are creating--and then the eventual scrapping of the dollar......oh, it's only just starting. Anyone on a fixed income is going to suffer. The working class will suffer further because their wages will not go up as fast as prices as their jobs are all subject to in or outsourcing. The only winners? the already rich.