In response to:

Obamanomics Has Failed Dismally

RMan3 Wrote: Sep 15, 2012 2:54 PM
This is not helping the economy because businesses and individuals are simply afraid to invest or expand, no matter how low the interest rate. On top of that, these low rates are making bank accounts worthless investments. Right now, my savings gets 0.2%. I looked at my bank's CD rates recently, and only if I got it for three years or longer could I get above 1%. Their 90-day CD had an annual yield of 0.15% ! (My banker said she's embarrassed to offer such a rate.) The one-year CD rate is 0.45%. That's right - a $1,000 CD returns a ridiculous $4.50 in a year (or less than 40 cents a month!). In the late 80s, a $10,000 one-year CD gave me $63 per MONTH in interest. Today, a $10,000 FIVE-year CD returns only $15 per month.

About 30 years ago, Paul Volcker launched a monumental monetary effort to bring down inflation. As Fed chairman, he sold bonds, removed cash from the economy and cared not one wit about rising interest rates. And it worked. Gold plunged, King Dollar soared, and the drop-off in bank reserves and money extinguished high inflation -- and actually launched a multi-decade period of very low inflation.

This week, current Fed chairman Ben Bernanke embarked on an absolute reversal of Volcker's policy. He is launching a monumental effort to buy bonds and inject new money into the economy in order to reignite economic...