In my last post I pointed out that savers should be earning about 4% interest on their savings accounts in banks or in money market mutual funds (MMMF). Instead, because of the Federal Reserve’s quantitative easing policy, that is, creating money of out-of-thin air that drives down interest rates across the yield curve—the interest rate depicted on a graph for short-term to long-term maturities—savers are forced to subsidize the banking sector, the federal government and corporate America as well as home purchasers and automobile buyers.
Quantitative easing thus is primarily a huge transfer of wealth from Main Street to Wall Street and the federal government.
The American people can stop this gigantic heist in its track by implementing S.O.S.; in other words, Savers On Strike.
The American people have the power to demand a market return on their money in the bank by withdrawing any excess cash from their checking and savings accounts and MMMF. In short, if savers keep only the amount necessary to pay their monthly bills and put the extra cash they usually keep in the bank or money market fund in a safe place, the banks and MMMF will have one big problem, not enough funds to make loans.
The Federal Reserve could try to offset the public’s action by more quantitative easing, that is, flooding the banking system with more new money. That would cause the dollar to plummet in the foreign exchange markets.
I have begun the Exodus of excess cash from my checking account. Savers do not have to withdraw all their excess cash in one day; they could withdraw their funds over a few weeks.
The withdrawal of trillions of dollars from the banking system will cause the Fed to rethink its massive money printing policy that has robbed senior citizens in particular and all savers of an income stream they depend on to pay for their living expenses. This is one of the most shameful periods in American financial history. The American people have the power to correct this injustice.
S.O.S. is the American people’s peaceful reaction to the legalized theft the Federal Reserve is committing against them. Let the Exodus begin.