People are constantly talking about historically low interest rates that should make it easier to buy a home. We constantly hear about how the government needs to make it easier to get loans or get credit. We still hear ads, even in our current economy, about zero-down and same as cash (mostly cars now; used to be everything).

To hear politicians and businesses alike, low prices are a disaster for anything but money. Money should be cheap to rent.

But what if you want to save?

There is nothing out there other than gambling in the stock market that will match inflation.

So what is the motive to save? Your money is losing value every day.

I hear Dave Ramsey talk about 12 percent returns over the long haul. I can’t find any productive saver I know who believes him.

Yes, people should resist the enticements of “free money” that will lead to debt slavery. But the fact is that the incentive to be a producer rather than a consumer has been greatly mangled by economic policy. The government intentionally forces the price of money at below market value and then it backstops (whether any politician will admit it or not until the bubble bursts) people who deal in unsecured debt. I just got checks offered from one credit card company with a letter that told me they wanted to be there to help me in case I had any emergency expenses. And they would charge me almost thirty percent interest. The highest Savings Account I can find will only give me 2.06 percent interest.

I’m not adding yet another category to this blog, but I think this post is part of a trend in my thinking. Possibly related:

What kind of society will be able to help those in need?

The Bubble and government policy in one lesson

My next entry in this line will talk about why a corporation in political control of a country (i.e. a state) would find it desirable to promote debt rather than saving.