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May 5, 2024

Financials Matter

"It's Not Just About Finance"

The “Big Lie” of Lower Interest Rates

 

Since 2008 our government has been lying about the effects of lower interest rates.  And I’m sick of hearing about it.

They’ve constantly said that lower rates will stimulate the economy.

What a bunch of crap.

How have lower interest rates improved your life?  What’s the best rate you can get on a CD these days?

Historically, most seniors depend on their savings to earn money for them.  How’s that been working out for the last decade?

Look, the criminals that make these policies actually think their decisions are going to work.  Not only have these policies failed miserably but they’ve made things worse.

The stupidity of their logic is mind-boggling.

Their solution to every crisis creates the next crisis.

In the case of lowering interest rates, they’ve under-minded every pension fund in America and set the stage for Government pensions to fail.

Let me explain.

Most pensions need a 7-8% return to stay properly funded.

Let that sink in for a moment.

After the crash in 2008, most fund managers sold at, or near the low, taking huge losses.  Since then they’ve tried to play catch-up.  But where can they get the 7-8% return?

If you guessed the “junk bond” market, you’re close.

The point is lower interest rates have forced most pensions into taking more risk.

That’s not a formula for success.

The main benefactors of low rates have been the banks and major corporations.  They’ve abused it by borrowing hundreds of billions Trillions at the lowest rates in history.

Banks make fortunes and the little guy gets screwed.

Wash! Rinse! Repeat!

In 2020, The Year of Chaos, you should expect to see interest rates rise – compliments of a mortally wounded REPO market – and Europe will be the first domino to fall.

Learn how to defend yourself against the inevitable rise in interest rates in our January newsletter.

Get exclusive access (HERE)

You’ll thank us later.

 

 

 

 

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