How savers are being robbed by the FED and inflation

[planosteve]

Savers in the period 2008-2013 have been losing ~4% on the + side due to low yield interest rate accounts and ~9% on the – side due to inflation.

So $10,000 in the bank @5% extra interest/year X 6 years would grow that money to $12,653 over that time. (CalculatorSoup.com) But your $10,000 of savings grew by less than 1% (let’s just round off and call it 1%), so it only grew to $10,615 over that six-year time period, for a difference of $2038 of lost income.

Additionally, the purchasing power of your banked money lost ~9% annually lost ~$5393 in purchasing power over that time. (ShadowStats.com inflation calculator) Goods and services that cost $10,000 in 2008 amounted to $15,593 in 2013.

Your $10,000 of saved money in 2008 would have lost $2038 in income due to low yield interest rates and $5393 in purchasing power over that six-year time period. That is a total loss of over $7000 from a starting point of $10,000.

http://www.lewrockwell.com/2014/11/bill-sardi/how-10000-in-a-bank-in-2008/

[GFB]

The Onion again?