The US Federal Reserve and its branches oversee these matters, while staying in the background and keeping a low profile.
Hi readers. Thanks for coming by for a read.
An acquaintance of mine sold off his home and land elsewhere a while back, carried the note. But the buyer payed off the whole thing unexpectedly far in advance of when it was due.
So my acquaintance suddenly found himself with almost a million bucks rolling around in his wallet wondering what to do with itself. Checked out money market, certificates of deposit, all the usual suspects figuring to make some interest on it as savings.
And suddenly found himself in Twilight Zone. Nobody’s paying interest on savings anymore, to speak of. The best interest he could find was 1%. Lucky to get that much.
So what the hell does that mean?
Heck, I’m clueless. My whole life it’s been background culture and policy, tradition, that savings were a good thing to do, prudent, wise, encouraged by government and banks alike. I think the worst interest I’ve ever known of in my life for savings was US Savings Bonds they hammered us into buying when I was in the military. Those paid 3% or so, and we all believed we were being raped.
About all I can figure is that banks are making all their money these days off high interest and fees on credit card debts, so much so they don’t need savings of investors to loan out. Don’t want to be having to share their profits in the form of interest payments with people who just save money in their institutions.
But I also think it must all go back to the smoke and mirrors of the Federal Reserve ghosthood, and who-knows-what-else involving stuff I can’t begin to imagine.
But if they’re only paying 1% interest on a million bucks, seems to me the government ought to be getting off fairly light on interest payments for the deficit loans. The folks loaning the government to keep going ought to be able to feel rich drawing 2% increase, say, on umpty-ump trillion quadrillion buzzillion dollars.
Somewhere in all this Economics 101 circa 1970 flees to Atlantis and sinks into oblivion. We’ve entered the Twilight Zone where no man has gone before.
Old Jules
So Far From Heaven 
The best way to get some safe income, is to work for money. The worst way to grow money, is to go to a bank. Most bank robberies happen when you enter the bank!
Owning companies with stocks is the way to make money. Companies you know or use their products a lot are good ways to pick stocks. Do not ever believe somebody has an inside deal on something you know nothing about. Rich people get greedy and swindled while blinded by stories of big returns. I do know of a gold mine in Wyoming, and I only need a million dollars to get it started.
Hoboduke: Assuming you have lots and lots of money I’d have to assume you know what you’re talking about. But otherwise you’re probably right here with the great majority of the rest of us on the net worth side of things. Which is to say you might be right, might be wrong, might just be speculating by acclaimation. The ‘best way to get some safe income’, a huge percentage of elected officials would say, is kickbacks. Down on the streets they’d say the ‘best’ way is selling drugs. But out where people are flipping hamburgers and picking up garbage cans tossing it into trucks they’d argue the best way to get a safe income is finding something else as a means of getting it. Gracias, Jack
Get a hot dog cart! You can meet interesting folks. You work outside. And don’t ever go into a bank. That’s when you get robbed!
hoboduke: I’d suggest you try it if the idea suits you. I doubt many people read here for financial advice. But likely your thoughts on financial matters would draw them like flies to a carcass in the appropriate setting. Gracias, Jack
I have an IRA that is earning 0.32%. I’m not sure why I have bothered to save anything other than it’s a habit. The people who will end up on the top of the heap will be the people who operate outside a cash economy. I can’t think about it too much or it pisses me off and I prefer to be happy.
Hi elroyjones. Yeah, I count myself lucky the packrats shredded all my money from my retirement during Y2K when I had it stashed under the floor joists of the cabin. Managed not to accrue any resentment against them, as might have happened if I’d been unluckier, rats wise. Gracias, J