Liberty Dollar of Chambersburg

INTEREST RATE DISASTER – My wife and I recently looked at a bank interest statement and could hardly believe the nearly non-existent return on investment.  We began thinking of the tens of millions of retired Americans affected.  Many of these retirees used to have a lot of dollars left over for discretionary spending because of significant interest income.  This is no longer the case.  Mike Eck, a Liberty Dollar colleague, recently pointed out that the deleterious effects of low interest go far beyond our senior citizens. 

            “Wage fund” destruction is rapidly occurring across the board, helping to explain a multitude of problems in the economy, not least of which is the dire strait the auto industry is in.  While the interest on that industry’s invested capital used to account for a significant portion of the money available to pay wages, it has now all but vanished.  It’s ironic because the continual lowering of interest rates has supposedly been a means of stimulating the economy.  It’s clear that it’s now having just the opposite effect.

            Excessive interest rate and currency manipulation are destroying the U.S middle class.  The extent of these criminal machinations is only made possible by the existence of the FED’S fiat paper dollar.  In 1971 when President Nixon closed the “gold window,” the last link to gold was severed.  By the time Paul Volcker took the helm at the Federal Reserve in August, 1979, the effect of Nixon’s actions was evident.  The new Fed Chairman was forced to raise interest rates to stabilize the dollar, but, since then, the chronic and persistent lowering of interest rates has had a disastrous effect on the country’s economy.  It shouldn’t be surprising that so many companies have been forced to seek cheaper labor overseas to compensate for their vanishing domestic wage funds.