Mike,

Savers are indeed going to be punished when we see significant inflation in the next couple of years.

Gold continues to look better and better to me.

Punishing savers is what this country has always done.  Look at capital gains taxes, inheritance taxes, and all the programs like social security and medicare that encourage us not to have to save, as the government will take care of that for us. People were spending to begin with, in fact, there was a NEGATIVE savings rate in this country for several months, people were BORROWING to spend. The problem is now, when people don't have jobs, they have little to spend.

The reason we are in our current economic situation is due in part to the easy access of credit. I've heard too people say that the way to fix the issue is to spend more and issue more credit! It makes sense then that savers are penalized.

You are right, the easy credit is what got us into this mess. Every year I noticed there would be some new financial invention.  40 and 50 year mortgages, interest only, stated income, lower down payments, etc. The economy was all based off of easy credit, so when the credit dried up, so did the economy. The answer isn't to punish savers, there aren't any to speak of in America, the answer is to loosen up the credit again if the goal is to inflate prices, although that brings its own set of problems.

Mike, are you kidding me? Where are they when people can't afford TO spend 'cause their savings is gone, etc. ;-)

I did my part. I spent $718.96 on a new computer and monitor yesterday. Next on my list is to pay 2008 taxes, then a vacation to Las Vegas, then to the Century 21 convention in San Antonio in March, and then a new car. I'm trying to help the government. I really am. LOL

Mike,

The casinos down here in the desert are doing business as usual.  Someone's spending money, but it's not me.  :)

Mike in Tucson