What is Occupy Wallstreet?

[kandrathe]

Yeah, it's kind of crazy that the system is rigged right now to favor debtors, and punish savers.

Howso?

1.06% for a 1yr CD? 1% savings rate if you can find it? If you can save up $10000, and save it in a bank, then after a whole year you'd get $100. Wow. And, the deck is stacked for ongoing inflation, which will allow people to pay for the impulses of today with cheaper dollars.

http://contraryinvesting.com/inflation/t...-analysis/

"If the Federal Reserve didn’t pay interest on those reserves, the result would be inflation rates far beyond anything the U.S. has ever experienced. The monetary base has more than doubled, and without the Federal Reserve paying interest on the recently created boatload of reserves that is essentially keeping them immobilized in accounts at the Federal Reserve Bank in New York, the M1 money supply would more than double and we would have inflation rates that would make the worst days of inflation in Brazil and Argentina look tame."

The US government is paying the banks for excess reserves, which in effect is paying them to keep the money out of circulation and keep inflation in check. The system is tuned for excess consumption at an ever growing rate, and without that we crash into recession, or depression.

It's unsustainable both in the resources we have, and in that we cannot keep borrowing from the future forever (especially with a decreasing population of earners/producers). Europe is there, the US and China are there shortly. India has such a wealth disparity across provinces, that it's hard to predict how they will fair.

Nevertheless, it's a time bomb.