Six Flags America -

Get ready for a wild ride;  we’re not even half way through this the excitement yet!  For months, no, actually many years now, I have been the town crier on the Fed’s low interest rate policy punishing those Americans who built this great country, aka the American savers.  These Americans made a respectable living, lived in modest homes, drove non-flashy reliable cars, while putting their children through college.  And each year they squirreled away money for their golden years.  Did you hear that America? They saved for the future. To them,  a comfortable future trumped an ego buy like a BMW suv or a Nordstrom shopping sprees for the family.

They thought that the American dream was building a nest egg and living off of the interest.  They lived through or heard about the Depression and knew that there family wouldn’t be able to bail them out.  They were adults the minute they walked through their parent’s door to pursue a career, family or to go fight a war.  Live within your means now and you will be rewarded later in life.  They were the tortoise, and never the hare.  You know what, it wasn’t just one or two families on a block, it wasn’t a neighborhood or town, it was a society that saved for the future damn it!

But guess what, their dream of saving now and enjoying later was a hoax.  American savers have to cash in their nest eggs to pay bills or to assist a son or daughter struggling with no job and trying to raise kids in a one-parent household.  Living off the interest was a pipe dream concocted by Merrill Lynch or Paine Webber almost a generation ago.

So tonight, just before falling asleep, say a prayer for the poor American saver.  Because their nightmare doesn’t end soon.  Interest yields on their bank cds and fixed annuities will remain low, until they rise; sharply.  Now wait a minute, that doesn’t sound so bad right?  Wrong.  You think the value of the U.S. dollar has shrunk the last 25 years, you haven’t seen nothing yet.  Wait for the world to start rejecting our bonds.  Interest rates will spike and gas and food and other items’ prices will go up and up year after year after year. Deficits don’t grow on trees.  Our government’s obligations won’t go away.  Now it may happen in 6 months, a year, or even 4 years.  I’m no fortune teller and I don’t know when, but mark my words, it will happen.  So keep your arms inside the car and hold on tight; because you’re experiencing a doozyof a ride!

Pay-it Forward:

I was having cocktails with an 82 year old neighbor on cape cod last week and and we both said the same thing.  We both agreed that there was so many career opportunities fortoday’s  post-college grads.  The key is to be hard-working, entrepreneurial and a person that has built good connections.  But the most important skill is to be able to communicate properly; to be a good listener and to be able to sell ideas.  The world has become smaller; and the grads that have the skills and determination will win the race!


Earl E Bird

I'm Earl E. Bird and I am very concerned about saving for my senior years. I am amazed at the stumbling blocks that exist when saving for retirement. That's why I take my time when making decisions on building my nest egg.

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