Wednesday, March 10, 2010

Takings v Taxes

I can remember thirty years ago when banks paid 7% on savings.

Applying the Rule of 72 that meant your money doubled every 11 years.

My current savings rate at Chase is 0.02%.

If I bought a 5-year CD I'd get a 2% rate. So that at least would earn something...it would double in 36 years.

I wonder if I'll ever earn 7% in this country in my lifetime. The Treasury Department can't have savings competing with T-bills for earnings; so it would have to match rates; and the Federal Reserve can't have the national debt double every twenty years.

This loss of the most basic earnings vehicle is a harsh taking of wealth by government.