Consumers Forgoing Retailers' Discounts as Fear Sets In
New economic data show that last month consumers were not tempted by retailers offering deep discounts. They were not enticed by lower home prices. And even though falling gas prices made their wallets a little fatter, they held on to their newfound savings and put off buying big-ticket items such as autos and home appliances. Full Story »
Posted by Derek Hawkins
With the Fed printing money, the only weapon the consumer has against inflation is to hold on to his money and search out bargains. In fact, consumers must withhold an amount of money equal to the new credit the Fed have created. If we ever start on a spending spree again, inflation will be crippling. The corolary of the above is that the money to bail out the banks is potentially coming out of the bank accounts of each and every one of us in the form of the reduced buying power of our savings. By buying cannily, we neutralize this stealthy theft.