The economy needs savings to rise......

More evidence of the next and probably last boom I've been telling you about. Too bad this won't last as a spending frenzy will develop over the next few years as all that cash printed up by The Fed has to find a place to land. Expect the Republicans to nick away at deficits but not much will change. Government spending rules our world for the foreseeable future as the final collapse comes within our lifetime.

Remains to be seen if the Repubs get a shot at destroying or at least beating the public unions down. I'm not holding my breath. 

It also remains to be seen how long we can keep this quantitative easing up before it spirals out of control and inflation bites us in the ass. We now support most of the world with our money. China collapses without our importing their trinkets and worthless electronics and they starve without our food which is booming in price. And don't get me started on our other creditor, Japan, which is a basket case waiting to tip over.

A printing press boom now known as "quantitative easing" will eventually consume the world in debts and put enormous pressure on governments to maintain order. Expect more riots and murder. Oh yeah, poor people lose their remaining health benefits as no doctor can afford to treat them at a loss and stay in business. Of course, everybody is just "greedy" and needs government to step in and punish these people. Expect the police state to accelerate everywhere.

We'll definitely need a war to keep the elites in power. Works every time!

Stay tuned!


New Study: Bank Deposits On Rise

Why are consumers ignoring low interest rates and plowing more and more cash into bank deposit accounts? Part of it is uncertainty – Americans are really unsure where the economy is headed, so putting money away for a rainy day seems like a good idea. When Americans are anxious about the economy, more money goes into fixed-rate investments (like banking accounts) and less into riskier ventures like the stock market.

Consumers are also concerned about paying down debt. In 2009 and 2010, Americans have paid down $1 trillion in debt, according to the Federal Reserve Bank of New York. Having more money on hand to pay down credit card debt has become a big priority for U.S. consumers. So not spending the money, and instead pouring it into bank accounts to pay bills, is certainly a reflection of the “New Normal” economists are talking about.

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However, all that saving may not be helping the economy in the short term. Economists would love to see more consumers out there spending rather than saving. But over the long haul, the newfound respect for the traditional bank deposit account could show that Americans are finally mending their wicked financial ways.

Image by mccmicb, via Flickr
Brian O'Connell

Brian O'Connell is a Doylestown, Pennsylvania-based freelance writer with 15 years experience covering business news and trends, particularly in the financial, health and sciences, political and career management sectors. He is a former Wall Street bond trader; an author who’s placed two finance/investment titles in "The Book of the Month Club" and he's a business writer whose byline has appeared in dozens of top-tier national publications, including The Wall Street Journal, CNBC, The Street.com, Yahoo Finance, CBS Marketwatch, and many more.
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