Another article confirms Federal Reserve’s artificially low interest rates hurt savers. Elderly, retired people who had been living off of the interest on their savings now find themselves with much less earnings due to one percent and lower interest rates. Faced with the lower income, some are falling prey to financial scams.
“What we really have now is a combination of the fraudulent seller with the needy buyer,” said A. Heath Abshure, commissioner of the Arkansas Securities Department and president of the North American Securities Administrators Association. “Right now, because of interest rates, the fraudulent sellers aren’t having any issues finding a buyer who wants to believe the lie.”
The head of the banking cartel, Ben Bernanke, defended the low interest rates.
“You’re not gonna get strong returns in an economy that is fundamentally weak,” [Bernanke] said before Congress. “The best way to get sustainable high returns to savers is to get the economy back to running on all cylinders.”
In truth, the best way to help savers is to let the interest rate rise to its natural level. Big businesses wouldn’t like this since they want low interest rates, regardless of the cost.
In a free market, borrowers and savers would negotiate interest rates; they would not be set by the Federal Reserve cartel of banks. In most business categories, prices vary amongst businesses. In banking, all banks charge about the same interest rates.
If we had multiple monies in the market, there would be different interest rates for each money and different interest rates with each money market.
See the Washington Post article.