Fed funds rate - CPI = real rate
Using current numbers: 4.75% - 6.4% = -1.65%
Put your money in a savings account with a 4.75% APY, you're still losing to inflation at a rate of 1.65%.
If real rates aren't positive, then central banks frankly aren't even trying to bring inflation down. Despite the """""aggressive""""" rate hikes from the Fed, bonds are still dogshit and people are still borrowing money to buy things while they're still cheap before inflation jacks up the price, which only perpetuates more inflation.
Also realize they routinely rejigger the CPI formula so the government doesn't look bad. The calculation above was using "official" numbers; the real inflation numbers are worse, easily double the CPlie.
This is "collapse of society" bad. We're on the tail end of losing three wars entirely through the stupidity of civilian leadership, we're about to lose a fourth, our nation is flooded with foreigners, criminals and perverts, whom fully half the political spectrum represents, and... we just decided to use every bank as insurance for itself.
Seems like the riskiest of risky banking investments are guaranteed on the taxpayers' dime. When you force an unsustainable bank to sell off its assets and are inevitably left with more insurance to pay out, who is the only sucker available to take from?
Nothing makes me want to keep my money in the bank like knowing they’re about to nickel and dime me in order to pay off lost deposits for billionaires.
The financial and banking systems need to be burned to the ground.
Everyone you shouldn't be reacting with surprise here. This was expected. You all should be somewhat hedged by now . If you weren't you're asking to be raped, and it's well overdue
Welcome to the American Lost Decade. Real rates are still negative, despite the Bureau of Labor Statistics cooking the CPI.
And the media carrying the water.
Could you elaborate on what you mean by this?
Fed funds rate - CPI = real rate
Using current numbers: 4.75% - 6.4% = -1.65%
Put your money in a savings account with a 4.75% APY, you're still losing to inflation at a rate of 1.65%.
If real rates aren't positive, then central banks frankly aren't even trying to bring inflation down. Despite the """""aggressive""""" rate hikes from the Fed, bonds are still dogshit and people are still borrowing money to buy things while they're still cheap before inflation jacks up the price, which only perpetuates more inflation.
Also realize they routinely rejigger the CPI formula so the government doesn't look bad. The calculation above was using "official" numbers; the real inflation numbers are worse, easily double the CPlie.
This is so much worse than people think it is.
Fully insuring deposits means that any future instability or fall through will be total.
I agree. This is the tip of the iceberg. There will be effects that you'll feel, but won't see written about for years.
This is "collapse of society" bad. We're on the tail end of losing three wars entirely through the stupidity of civilian leadership, we're about to lose a fourth, our nation is flooded with foreigners, criminals and perverts, whom fully half the political spectrum represents, and... we just decided to use every bank as insurance for itself.
Seems like the riskiest of risky banking investments are guaranteed on the taxpayers' dime. When you force an unsustainable bank to sell off its assets and are inevitably left with more insurance to pay out, who is the only sucker available to take from?
Good news, everyone! The rich will get their money after all.
And all the funding will be paid for not by the tax payer but
The dumb sons of bitches who have accounts with FDIC insured banks! God bless the Fed!
Nothing makes me want to keep my money in the bank like knowing they’re about to nickel and dime me in order to pay off lost deposits for billionaires.
The financial and banking systems need to be burned to the ground.
He is right. The Fed and all these woke banks waste time on diversity/equity garbage.
Everyone you shouldn't be reacting with surprise here. This was expected. You all should be somewhat hedged by now . If you weren't you're asking to be raped, and it's well overdue
Look ahead to what hasn't been factored in yet
Hedged how?
Information had been discussed and shared for decades. Everyone had plenty of time to ask questions and prep
Then if it gets worse...
supplies to weather a collapse (food, medical supplies, tools, energy, etc.)
network of trustworthy people to share the burden