The Stockholm Syndrome and Printing Money

[OldPoop]

This guy has an unusual point of view on why we put up with money printing.

Imagine that you are a retiree with financial assets of $120,000, which is the median wealth of American retirees. If you invest this money as safely as possible - in 3-month Treasury bills -- you will earn a total of $60 a year in interest before taxes and inflation. So you have barely $1 a week to live on. This is the financial version of intimidation and abuse.


So, is there evidence of wild, unsustainable speculation? A stock market bubble, for example? Well, yes, the market is scaling new heights. But compare it to December of 1999, when the Dow Jones hovered near 11,500. With the Dow at 15,000 today, that's a compound rate of return of less than 3 percent a year, just barely keeping pace with the rate of inflation. In other words, by 1999 standards, the Dow hasn't returned a dime in real, inflation-adjusted returns. So is it really at some kind of new speculative high?


LOL, I can't believe that guy really thinks inflation has been 3%.


http://www.pbs.org/newshour/businessdesk/2013/05/the-stockholm-syndrome-and-pri.html