Savers bringing down the system as we adopt the Ron Paul zero risk approach

[eek.]

Too many savers bringing down the system as we "go japanese"

Must be the level of wealth many people have nowadays.
Folks are protecting it instead of risking it, so the system stagnates/goes up.

Long live Ron Paul...not.

-------------------------------------------


<TABLE class=storycontent cellSpacing=0 cellPadding=0><TBODY><TR><TD colSpan=2>Premium Bond prize fund to be cut


</TD></TR><TR><TD class=storybody><!-- S BO --><!-- S IIMA --><TABLE cellSpacing=0 cellPadding=0 width=226 align=right border=0><TBODY><TR><TD>

NS&I rates are coming down but are tax-free

</TD></TR></TBODY></TABLE><!-- E IIMA --><!-- S SF -->
The number of Premium Bond prizes is being reduced following the recent cut in the Bank rate to 3%.
National Savings & Investments (NS&I) said the total Premium Bond prize payout would drop from £87.8m this month to about £57m in January 2009.
The number of Premium Bond prizes will fall from 1.54 to 1.1 million.
There will still be two £1m jackpot prizes a month, but the overall odds of winning a prize have risen from 24,000-to-1 to 36,000-to-1 per £1 bond. <!-- E SF -->
Someone who had invested the maximum of £30,000 in Premium Bonds will now win, on average, 10 prizes a year, NS&I says.
100% safe
In the past few months NS&I has seen an upsurge in money being invested by the public, who have been keen to take advantage of its 100% state guarantee following the recent worries about the solvency of High Street banks.
Rates on NS&I accounts were cut previously in October after the Bank of England cut the Bank rate from 5% to 4.5%.
In the light of its latest cut, from 4.5% to 3%, other variable NS&I savings rates - for Individual Savings Accounts (ISAs), income bonds, investment accounts and savings accounts - are also being reduced alongside those for Premium Bonds.
The interest rate on the popular cash ISA has been cut to 2.4% from 3.9%, and that on income bonds has fallen by 1.3%, less than the 1.5% cut announced by the Bank of England earlier this month.
One group of savers are, however, being offered slightly more than before by NS&I. It is raising the interest rate for customers who have between £5,000 and £9,999 in its Easy Access savings account, from 1.15% to 1.45%. Most NS&I accounts pay interest tax free.
</TD></TR></TBODY></TABLE>
http://news.bbc.co.uk/1/hi/business/7737003.stm

 

[fletchisrhsm]

Saving is a good thing. Only those controlling fiat money would assume otherwise. Its either a little pain now or alot more later.

 

[tiznow]

no country can survive without savings eekster

it was inevitable that we go japanese at some point after living beyond our means on debt for so long

also historical savers aren't bringing down the system dude

savers are doing the same shit they were doing in years past spending within their means and saving a good chunk of their checks

the dudes bring the system down are the debtors who spent beyond their means allowing our global economy to expand and grow capacity beyond levels that were sustainable over the long haul

and now we doing the painful flushing out process now that they longer debtors living beyond on their means and not saving like they should have been in the past

 

[eek.]

America used to be about risk taking, America was built by risk takers.

Looks like Americas future with you lot is as a bunch of Ron Paul grannies all jealously guarding their wee jars of gold.

 

[fletchisrhsm]

America used to be about risk taking, America was built by risk takers.

Looks like Americas future with you lot is as a bunch of Ron Paul grannies all jealously guarding their wee jars of gold.

live like no other now so you live like no other later on

Soumi

:cripwalk:

 

[tiznow]

America used to be about risk taking, America was built by risk takers.

Looks like Americas future with you lot is as a bunch of Ron Paul grannies all jealously guarding their wee jars of gold.

the smart risk takers are biding their time for now eekster

guarding the jars full of gold just a near term thing in response to the extreme risk taking in recent past that is blowing up in many people's faces including the rich and wealthy (hedge funds)

they'll be in buying with both fists in a year or two

in the meantime they just waiting for things to deflate further first

much like the 30s this going to be a buying opportunity of a lifetime in a few years or so

well the time frame kinda depends on obama yo mama too

how aggressive he gets with the government artificial non free market reflation plans

if he does 30+ stimulus packages type thing like the japanese could drag this pain out for a longer period of time

 

[barelyworking]

Saving is healthy for an economy.

The other plank of a Ron Paul's fiscal conservatism (also called the Austrian theory of economics) is reduced spending. Slashing spending without printing more money is also required. The bad debt must be liquidated so that we can begin recovery.

 

[eek.]

So who is it that's actually spending any munney in this Ron Scrooge Paul eutopia?

The Punters-nope
The Government-nope

:grandmais

Capital will flow abroad to better opportunities, you can bank on it.

 

[tiznow]

better opportunities

where?

alot of money is currently flowing into US government bonds which will be the future of spending once obama yo mama and company get in come jan

US corporations still produce a ton of shit the world needs regardless of how bad shit gets

the rest of the world for the most part

nah

and like is say

gonna be opportunities abound in US corporate stock in a few years or so.....when tizgloom turns into a raging bull and dow gets down to 5k or lower

for now all the bad debt needs to implode and there will be many casualties.....like auto industry for example

but it is a necessary cleansing process

 

[nimue77]

:lol: So let me get this straight...you are blaming people for saving?

Too many savers bringing down the system as we "go japanese"

Must be the level of wealth many people have nowadays.
Folks are protecting it instead of risking it, so the system stagnates/goes up.

Long live Ron Paul...not.

-------------------------------------------


<table class="storycontent" cellpadding="0" cellspacing="0"><tbody><tr><td colspan="2">Premium Bond prize fund to be cut


</td></tr><tr><td class="storybody"><!-- S BO --><!-- S IIMA --><table align="right" border="0" cellpadding="0" cellspacing="0" width="226"><tbody><tr><td>

NS&I rates are coming down but are tax-free

</td></tr></tbody></table><!-- E IIMA --><!-- S SF -->
The number of Premium Bond prizes is being reduced following the recent cut in the Bank rate to 3%.
National Savings & Investments (NS&I) said the total Premium Bond prize payout would drop from £87.8m this month to about £57m in January 2009.
The number of Premium Bond prizes will fall from 1.54 to 1.1 million.
There will still be two £1m jackpot prizes a month, but the overall odds of winning a prize have risen from 24,000-to-1 to 36,000-to-1 per £1 bond. <!-- E SF -->
Someone who had invested the maximum of £30,000 in Premium Bonds will now win, on average, 10 prizes a year, NS&I says.
100% safe
In the past few months NS&I has seen an upsurge in money being invested by the public, who have been keen to take advantage of its 100% state guarantee following the recent worries about the solvency of High Street banks.
Rates on NS&I accounts were cut previously in October after the Bank of England cut the Bank rate from 5% to 4.5%.
In the light of its latest cut, from 4.5% to 3%, other variable NS&I savings rates - for Individual Savings Accounts (ISAs), income bonds, investment accounts and savings accounts - are also being reduced alongside those for Premium Bonds.
The interest rate on the popular cash ISA has been cut to 2.4% from 3.9%, and that on income bonds has fallen by 1.3%, less than the 1.5% cut announced by the Bank of England earlier this month.
One group of savers are, however, being offered slightly more than before by NS&I. It is raising the interest rate for customers who have between £5,000 and £9,999 in its Easy Access savings account, from 1.15% to 1.45%. Most NS&I accounts pay interest tax free.
</td></tr></tbody></table>
http://news.bbc.co.uk/1/hi/business/7737003.stm

 

[nimue77]

Exactly! I thought about buying a home last summer and decided to wait since I thought the housing market would drop further. Glad I did too.
When I feel the housing market has neared a bottom then I will buy. Can't blame people for looking out for their own interests eekster.

the smart risk takers are biding their time for now eekster

guarding the jars full of gold just a near term thing in response to the extreme risk taking in recent past that is blowing up in many people's faces including the rich and wealthy (hedge funds)

they'll be in buying with both fists in a year or two

in the meantime they just waiting for things to deflate further first

much like the 30s this going to be a buying opportunity of a lifetime in a few years or so

well the time frame kinda depends on obama yo mama too

how aggressive he gets with the government artificial non free market reflation plans

if he does 30+ stimulus packages type thing like the japanese could drag this pain out for a longer period of time

 

[tiznow]

housing not a rush by any means nimue

once it hits bottom it is staying there for a while

no V shaped bounce IMO

but downside risk on housing should be minimal in a year or two at the same time

and you can expect prices to start stabilizing

 

[mamatried]

Americans definitely need to increase their saving rate.

But the point about Ron Paul economics is well taken. While he makes some sense when he talks about the insidious effects of running large deficits, if he had his way most of us would still be riding in horse and buggies, calculating using abacuses, and communicating via homing pigeon. Which means I would have never heard of eek, tiznow, gtc...

Hey, wait a minute... on second thought.....

 

[tiznow]

so your telling me american ingenuity's backbone is dependent on the federal reserve and fiat money

:missingte:missingte:missingte

going back to sound money doesn't mean no debt

government intervention, fiat money, and excessive debt has ruined many a industry in america or they reached a point where we had to inject more debt and fiat money into them to save them as well and we are seeing that in full living color currently

banking, housing, auto, airline to name a few