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Moneywise

Trade deficit could make the worth of consumers' savings diminish

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  • Third try screen name Mapleton, UT
    Dec. 11, 2012 2:56 p.m.

    The trade deficit has less to do with our savings than the actions of the Fed. There is no return on a savings account. A CD doesn't even keep up with inflation.
    From a Washington point of view low interest rates are good. If we returned to the old days when a passbook account paid 4% the interest on the national debt would be huge. It's already up there with the defense budget.
    Washington wants low interest. The Fed wants low interest. One can hardly blame it all on the trade deficit.