Your Economy (No Politics)

[roguedolphin]

Somebody has to pay for those bankster bonuses you know...
http://www.siliconinvestor.com/readmsg.aspx?msgid=27721769

We have very high inflation and very low interest rates - scenario that most benefits the banksters (first receivers of new money) and hurts savers and people on fixed income the most

Q: How many retirees have to be slaughtered, cut up and sacrificed to give one middle level bankster a modest bonus of let's say $1.5 million?

Calculation for a retired couple with combined SS + pension income of 3000/month and savings of $200 000
Assuming 8% inflation, 4% reported inflation and same SS COLA, 1% income on savings in bonds/CD's
(of course I am assuming the position of this bankster would not exist if not for Fed's easy money policies)

They are getting ripped off in 2 ways:

1. Understatement of inflation causing real 4% annual loss in income (8% inflation- 4% COLA)
36K*4%= $1440

2.Loss of purchasing power of savings due to high inflation and artificially low interest rates:
Inflation-net interest in bonds/CD's: 8%-1%= 7%
200K*7%= $14 000

Total: $ 15440

Conclusion: about 100 retired couples have to get shafted and put on a path to poverty to provide a bonus of 1 bankster