I often write in this blog about bad Federal Reserve policy and how printing all of this paper money is a curse that is going to bring on terrible inflation down the road.  The thing is that it is down the road and so I understand that it is hard to wrap your brain around why this should be of concern to you, though it most certainly should, as you have problems now and later is not yet on your radar.  I get that.

However, for one huge demographic group, our seniors living on fixed assets and incomes, these artificially low interest rates are a special curse.  Yes, the low rates make cheap money available to business to fuel hopefully future growth, but they also depress the interest paid on savings and that kills seniors incomes.  By keeping interest rates so low, seniors can only earn a paltry one or two percent on CDs and other savings vehicles.  Since for millions of them, that low a rate means not earning enough to live on, they are forced to take risks that they both don't fully understand and shouldn't be taking in the first place.

Meanwhile, the government insists that inflation is low - but tell that to a person living on a fixed income.  Prices on food and fuel are going up and it hurts them a lot.  They cannot make it on traditional investments.  It doesn't take a genius to figure out that when we force millions of innocents to buy investments that they don't understand completely it is only a matter of time before they get hurt.

When this looming disaster finally reveals itself, politicians will line up to announce new fixes and regulations on evil banks who are not paying enough in interest.  The banks will be scorned for making profits at the expense of seniors.  Just remember that it is not the banks that are causing this mess any more that it was them that caused the mortgage meltdown.  Nope, it is the federal government and Congress who are making this new mess just like they made the last one. And we are all getting too smart and experienced to keep falling for them blaming everyone but themselves.  This fall is going to be an interesting political season for sure.