[Stormsmith]

In the old days, Canada 's bank doled out decent interest rates, making savings worthwhile and safe. Today rates are so low and gas so expensive one is better off putting cash under the mattress.

[Rancid]

In the old days, Canada 's bank doled out decent interest rates, making savings worthwhile and safe. Today rates are so low and gas so expensive one is better off putting cash under the mattress.

Bank interest rates all by themselves doesn't tell you if it's bad or good. You have to look at the bank interest rate relative to the overall inflation rate. Bank interest rates are ALWAY lower than inflation, which means keeping money in the bank causes it to lose value. Always.

The reason interest rates were higher years ago, especially in the 80s, is because overall inflation was also higher. Thus, even back then, you are still losing value even when the interest rate is higher. Bank rates track inflation, and always lower than inflation. That's the only way the bank can earn some money with your money. Even when you get a "good" rate relative to other banks, you are still under inflation. Don't be fool by the cock sucker mother fuckers.

The only way to have a chance at tracking inflation is with bonds, especially inflation protected bonds.

[Crantag]

In the old days, Canada 's bank doled out decent interest rates, making savings worthwhile and safe. Today rates are so low and gas so expensive one is better off putting cash under the mattress.

In America, you now have to pay banks to have a checking account. It only really applies to poor people (with minimum balances/linked savings accounts--but actually, even this involves small cost). The mattress is literally a more economic alternative. (That, or a credit union.)

[Crantag]

Bank interest rates all by themselves doesn't tell you if it's bad or good. You have to look at the bank interest rate relative to the overall inflation rate. Bank interest rates are ALWAY lower than inflation, which means keeping money in the bank causes it to lose value. Always.

The reason interest rates were higher years ago, especially in the 80s, is because overall inflation was also higher. Thus, even back then, you are still losing value even when the interest rate is higher. Bank rates track inflation, and always lower than inflation. That's the only way the bank can earn some money with your money. Even when you get a "good" rate relative to other banks, you are still under inflation. Don't be fool by the cock sucker mother fuckers.

The only way to have a chance at tracking inflation is with bonds, especially inflation protected bonds.

Banks started charging for checking accounts after post-2008 laws precluded them from charging some of their bullshit fees (so they had to open another front on milking consumers, particularly poor ones).

You are always good for reciting mainstream mythologies though.

[Politics_Observer]

@Rancid @Stormsmith

The only way to have a chance at tracking inflation is with bonds, especially inflation protected bonds.

If you invest in inflation protected U.S. Treasury bonds you want to make sure those bonds are in a tax advantaged account, ideally in a Roth IRA or Roth 401(k) account. Qualified distributions from Roth accounts are tax free. If you invest in inflation protected U.S. Treasury bonds outside of a Roth or other tax advantaged account, then the IRS treats any inflation adjusted principle of the bonds as a taxable event which eats into your purchasing power given you have to pay taxes on the inflation adjusted principle as it continues to adjust to inflation going up.

The good news with these bonds, is that interest is paid on those bonds based on the newly adjusted principle. But you want those bonds ideally in a Roth IRA or 401(k) account so that taxes can't eat away at your returns and you can still gain buying power despite the fact that inflation has gone up.

Another strategy for combating inflation is to invest in low cost index Real Estate Investment Trust (REIT) fund. Real Estate tends to keep up with inflation and rent collected from these properties are also tied to inflation. So, by investing in a low cost REIT fund you can combat inflation too and maintain and increase the buying power of your money despite inflation going up.

Putting a percentage of your investment portfolio in low cost REIT index funds is a good strategy to combat inflation.

If you have a Roth IRA and/or Roth 401(k) account, you can also consider investing in inflation protected U.S. Treasury bonds so long as you keep those bonds in that tax advantaged account and only take out that money for a qualified distribution to where you don't pay taxes on it.

[Wellsy]

@Wellsy



Yes, one of my good Australian friends told me about this. He also told me that it was mandatory for Australians to vote. Australia has a better functioning democracy than the U.S.

I wouldn’t know but Australia is certainly slipping on some different fronts.

[Unthinking Majority]

In the old days, Canada 's bank doled out decent interest rates, making savings worthwhile and safe. Today rates are so low and gas so expensive one is better off putting cash under the mattress.

Yeah, they want you to buy stocks and whatnot. Doesn't make much sense because the minute you put it in a bank savings account the bank is investing that money somewhere anyways.

[Unthinking Majority]

Banks started charging for checking accounts after post-2008 laws precluded them from charging some of their bullshit fees (so they had to open another front on milking consumers, particularly poor ones).

You are always good for reciting mainstream mythologies though.

Imagine having a business where you charge your customers a fee in order for your customers to lend you tons of money.

Banks are the greatest businesses of all-time. People will lend you all of their money and all you have to do is keep it safe, and they up all these limits on how much of your own money you can take out at a time, meanwhile the banks can turn around and invest it in anything they want and make tons of money using other people's money and keep all the returns while throwing you a few dimes per month in "interest". lol.

[Politics_Observer]

@Wellsy

I wouldn’t know but Australia is certainly slipping on some different fronts.

I think many parts of the world is slipping on several different fronts honestly speaking. The world has become much more interconnected and it's important for international cooperation be taken to combat some of the problems facing various different nations on a global scale. Not saying all problems can be solved on a global scale. But some problems can only be tackled and solved via international cooperation.

[Godstud]

It is nigh impossible to save money, when you live from paycheck to paycheck. Even small amounts saved get eaten up by unexpected expenses.

eg. A car you use for commuting to work breaks down and needs repairs. You have an accident and get injured, where your broken arm is deemed a pre-existing condition(for Americans only) and you have to pay out of pocket. etc.

This is hardly surprising. This last two years has probably eaten up a great many savings(as people are having to live off them), and has cut mine by 2/3.

[Politics_Observer]

@Godstud

I agree with you Godstud, but here in the U.S. some of these expenses could have been more easily covered if older people voted more wisely at the polls. I think if older people voted more wisely at the polls, they would have more money in their pockets for things like retirement today. Instead, they have allowed themselves to be manipulated by demagogues or unscrupulous politicians who prey on the ignorant but do not have the interests of their own voters at heart. This is the cost you pay for ignorance and/or willful ignorance and unwillingness to think critically about the issues and vote wisely.

[Potemkin]

Imagine having a business where you charge your customers a fee in order for your customers to lend you tons of money.

Banks are the greatest businesses of all-time. People will lend you all of their money and all you have to do is keep it safe, and they up all these limits on how much of your own money you can take out at a time, meanwhile the banks can turn around and invest it in anything they want and make tons of money using other people's money and keep all the returns while throwing you a few dimes per month in "interest". lol.

"What is robbing a bank compared to founding one?" - Bertolt Brecht.

The best rackets are always the legal ones, not the illegal ones. Capture the legal system, and anything becomes possible....

[Politics_Observer]

@Potemkin

The best rackets are always the legal ones, not the illegal ones. Capture the legal system, and anything becomes possible....

Yeah over here in the U.S. the banks run one hell of a racket. They even force you to take out loans even though you don't want to because you "need to build credit" to get approved for things like an apartment you might want to rent for example. So, being responsible and staying out of debt can work against you here in the U.S. because of the way the banks have the credit system rigged.

If you don't play ball and are responsible and pay all your bills and stay out of debt, it is held against you. The banks rig the credit system this way to force you to take out a loan or get a credit card even though you don't want to. You really don't have a choice. This should be illegal but it's not and is in fact part of the system that the banks have set up and forced upon everybody else.

[Politics_Observer]

@Crantag

The mattress is literally a more economic alternative. (That, or a credit union.)

Yeah, that's the reason why I bank with a credit union.

[late]

@Crantag



Yeah, that's the reason why I bank with a credit union.

I just started 'Debt, the first 5,000 years'. It's excellent, so far, and I've been meaning to talk about it. It has a section talking about the savaging of the 3rd world by banks that you guys should see.

[what kid marley]

im o.d. + im MARLEY - FUK G.O.D.

[MistyTiger]

In America, you now have to pay banks to have a checking account. It only really applies to poor people (with minimum balances/linked savings accounts--but actually, even this involves small cost). The mattress is literally a more economic alternative. (That, or a credit union.)

If you have a bank account as a minor and a parent is the primary owner, then you do not have to pay for the checking account. That's what happened with my primary checking. I could remove my parent's name from the account I suppose, but I do not bother. I am so busy.

[colliric]

You think it's bad now, just wait till the single unmarried, born into student debt, childless Millennials hit old age....

Problem is going to get much much worse.

[Crantag]

If you have a bank account as a minor and a parent is the primary owner, then you do not have to pay for the checking account. That's what happened with my primary checking. I could remove my parent's name from the account I suppose, but I do not bother. I am so busy.

I was talking more in terms of the principle of it. I avoid the fees by maintaining a minimum balance. I have been meaning to switch to a credit union, but I haven't bothered, because I'm to busy lazy.

@Unthinking Majority summed up pretty well in his reply to me the sort of thing I was basically getting at, namely the exploitative nature of consumer banking (and it is total bullshit in my view--when you deposit money in a bank account, indeed you are effectively lending a bank money).

It isn't worth getting too pissed off about though. We are just little people, and we just navigate the institutional mazes the best we can.


Edit: As it were the minimum balance thing does effectively increase my credit card interest. And I've managed to maintain the minimum balance, sometimes barely. And this while basically not really paying rent by effectively being semi-homeless.

Consumer finance is very exploitative, though especially for the poor.

[Unthinking Majority]

I was talking more in terms of the principle of it. I avoid the fees by maintaining a minimum balance. I have been meaning to switch to a credit union, but I haven't bothered, because I'm to busy lazy.

@Unthinking Majority summed up pretty well in his reply to me the sort of thing I was basically getting at, namely the exploitative nature of consumer banking (and it is total bullshit in my view--when you deposit money in a bank account, indeed you are effectively lending a bank money).

Banking accounts aren't really exploitative, it's just not a good business deal that people knowingly and voluntarily sign. Exploitation I think involves some kind of nefarious deception or coercion or otherwise unethical behaviour. Something like pushing sub-prime loans or high-interest credit cards without clearly laying out the risks to customers, or investing accounts with hidden fees and hidden conflicts of interest would be more exploitative IMO.

There's lots of online banks with zero fees and better rates than the brick-and-mortar banks.