European Central Bank cut interest rates Sept 4-14 | Page 2 | General financial discussion | Discussion forum

Jon, interest rates, savings account rates, GIC rates,bonds rates are supposed to reflect inflation plus 2% to 3% on top of that to compensate depositors, investors depending on the length of time they tied up their money.

I am not greedy demanding 8% or 9% or 10% etc. Myself and our family are requiring a decent interest rate to reflect today's inflation rate and savings that we set aside with our work and time.

It is not a matter of being angry or even frustrated which is more like how we feel but the fact that we are supposed to spend more of our own money by being in more debt to help the Canadian economy at the expense of our personal, family's economy.

Jon, this makes no sense in the medium to long run for all of us and this is why Ontario wants to get more money starting soon in 2017 to pay people Ontario pensions at probably 73 to 75 years old.

They are hypocrites because by them taking peoples money that they do not spend into the economy and get into debt, it is a good idea for them but by my family topping up RRSP's, TFSA's and savings, investments and reducing debt, it is bad for the economy. It makes no longer term sense.

In today's world, 3.5% to 4% for 1-3 year money, 4.5% for 4-5 year money, 5-15 year money 5% and 15+ year money 5.25% to 5.75%. I know what many will say, if rates rise the economy can't handle it. It is the sickness of too much spending, speculation with debt that has piled up in our society that is the problem not 4% to 5%+ interest rates.

Think whatever you want but the time most retirees need income the most they get shafted. It looks fishy to me and looks to much of a coincidence and more planned by years prior.

Personal financial behavior is a big part of the problem but if it is done with no debt or such little debt then it will have little to no real economic impact on our society and money markets etc.

Banks, Financial institutions etc. are not evil but greed and selfishness has been increasing for years now. There is a big difference of making an ongoing decent profit and being gamblers and debt hogs as well.

They want to win all the time taking big time risks and we are always responsible for their risky, irresponsible dumb moves.

Banks and other financial institutions have no business using 10, 20, 30 times leverage, debt to make massive profits and then get money from us, taxpayers, investors, depositors etc. at our expense.

They are suppose to lend out money with prudence and risk management as if the money was theirs that will be paid back as much as possible.

The real theft that is occurring today is I am tired of hearing that inflation is 1.5% to 2.00% which we all know is not accurate. Utilities, gas, insurance, property taxes, rent, car repairs and maintenance are all going up anywhere from 4% to 10% yearly depending where you live in Canada.

Food, shelter, transportation costs, medical etc. are all going up more than 2.00% a year as well. As for debt, debt is not evil but it is the excessive use of cheap, low interest rate debt in our society that creates so many problems.

Credit cards to mortgages, lines of credit, auto loans, furniture loans and other financing deals all increase sales in the short term but takes away more money from the future. Also, it creates higher prices that would not of occurred like Canadian housing prices, car prices and many other goods and services that have gone up by at least 30% to 35% more in the last decade by the false demand of people, government, corporations, companies etc, using cheap, low interest debt to spend and buy more than they ever was possible with straight cash, payment in full without any debt.

Mortgage rates at 6% to 10% would never of allowed housing prices to grow by 6% to 7% annually for the last 15 or 20 years. Auto loans at 0% to 1.99% rates stretching out to 72, 84, 96 months would never allowed $30,000 to $50,000 car, truck prices etc.

Jon, there is too much debt in the world and this is what is dragging down everything. Spending is not the same as credit, debt use and I don't see how you can not see the difference. The more debt used to increase spending in consumption, the more trouble we will all be in. It is like a snowball that keeps growing.

Jon, go back and see how they changed the C.P.I. many times that results in lower and lower inflation not reflecting the true inflation rate. It is to the government's benefit to pay less to pensioners and for benefits, tax credits, personal exemptions and amounts etc.

Even corporations like insurance companies benefit because of those that have annuities, insurance products are being paid less as well tied to C.P.I.

As for the Euro, E.U., it simply does not work and this is why in Germany the right leaning party there is gaining more popularity because they want to go back to the German Mark. Most of the time government looks at its best interest and for businesses and consumers, depositors and smaller investors are last in line.

Speculation is not needed and it is just more greed in our capitalist, economic system that creates the very imbalances you always talk about Jon.

Loonie, higher utilities costs, property taxes, food, energy costs impacts everyone meaningfully, the poor, middle class and rich but the reason why the poor and middle class seem to be impacted more these days is because they have debt at high levels never seen before in our history which takes money away from them to cope for paying higher prices for all these things plus more.

Also, since they are indebted so much, they don't have any ability or chance to have much financial investments that actually pay interest, dividends, capital gains that will offset higher prices and actually grow their net worth. It is a double hit that poor and middle class are taking today.

Jon, the same professors in your so called universities are the ones that are totally clueless. We have a better education and understanding than listening to some elite, book worms that think they know how the world works.

It is called life and experience and since you are a young person, you will eventually find out what they say in the books or whatever information they are making you learn from your computer screen is never what happens. It is all a big experiment and they don't care who gets hurt in the process.

The real people in the economy that matters is workers and businesses that help grow the economy and pay taxes of all types. The savings and capital of businesses are also an important part of a capitalist, free market economy. We don't have a free market anymore.

Too much debt is the real problem and we will all learn the hard way when this all catches up to us. There is a difference between capitalism and crony capitalism. We have crony capitalism and yes they don't want to admit it but corruption exists everywhere.

Do yourself a favor and look up using Google the different corruption indexes or indices that exist. Yes, there is such a thing. We maybe at a lower level but I have not checked for awhile now so I can't say for sure this is the case.

Speculation is a function that is supposed to work in a free market economy when those that speculate and lose take the losses but when we have speculation backed by bailouts and crony capitalism like today, there already exists socialism which is communism anyway.

Banks, financial institutions, corporations capitalize profits, gains and socialize losses. We, the non elite which we are not governments, multinational corporations pay for it all, taxpayers for all their risk taking and losses but we are the biggest losers compared to what they have gained at our expense.

As for politically speaking, we are for lower taxes, keeping spending under control, reducing deficits and keeping debt in line, cutting out wasteful spending and corruption as much as possible.

Also, government spending for those that really need it and only what we can really afford and makes economic sense in the long run plus stopping the abuse of ever expanding government and stopping the falsehood that government is the answer to all problems on this earth.

Jon, we need real capitalism, a truly free market economy and not this crony capitalism on steroids we have today that has never seen the likes of this in history. Ask your professors about that subject. They will not even give you the time of day. It is the real world, real life and is not part of their so called curriculum.

Jon, the elites are not going to regulate themselves. The lobbyists, corporate donations and union donations and all these elites of all types like the system the way it is. They are not going to fix anything.

They are laughing all the way to the bank, literally. It is what they do best.

Loonie, just because something is legal does not mean it is correct. It is not morally right either. Regulation is for us only and not for those that milk the system.

If things keep going in this direction and I don't see why not because it works just great for them. We will see another big financial, economic global crisis and we will not only be depressed but be in a depression.

There is a limit to everything in life and if they think that it can't happen, then we are in deep trouble.