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Illustration from: Lily: The Girl Who Could See
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Our Seniors

The desert represents low interest rates, the result of quantitative easing or printing of money. A secure savings in a two-year U.S. Treasury bond for seniors provides them with a return of less than one-half of one percent. So they work hard, save all their lives and have a million dollars in the safest investment. The U.S. government will provide them with less than $3,000 a year on their savings.

So we the people drive our seniors to either go back to work or to invest in equities—high risk, if you’re investing for the short term. Some of our seniors take the risk, crossing over the treacherous market with the hope of a higher return on their savings. This is what the Fed has chosen to do. The rich get richer, the young who invest for the long term should do OK, but our seniors are forced to cross the treacherous market.

What are we doing? What have we become? This artificial propping up of the market with low interest rates will end badly because it is formulated with bad intentions and a spirit of short-term gratification.  

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