The Skeeter Daddle Diaries

Back in the Paleolithic Era I used to put my allowance of 50 cents a week into 25 dollar U.S. Savings Bonds, something my folks, being Depression Era kids, wanted us to learn, the habit of thriftiness. And … a little economics too. Like how interest rates work and our little pile of money would grow bigger if we just skipped candy and comic books. Later we would buy IRA’s and CD’s, etc. and when interest rates were high, money accrued rapidly … assuming inflation didn’t eat it faster.

After the Great Recession the Federal Reserve Board, those watchdogs of the economy, drove interest rates into the ground. My little savings accounts weren’t going to grow much when the interest was point something. You wanted to make money, boy, you invested in the stock market where the Fed hoped you’d stimulate the economy back to health. Great if you like to gamble, not so great if you’re old and cautious like myself. That Dow Jones or the S&P 500 or the Nasdaq drop 40% like it did in recent memory, you maybe won’t live long enough to see that money come back. Needless to say, a decade and a half after the interest rates bottomed out near zero, I’m not a big fan of the Fed. My pals who threw the dice on the Dow, they love the Fed. The rich are getting richer, way of the world. The poor? Well, they might as well bury their paltry savings accounts in tin cans behind the garage.

Now we got cryptocurrency. Bitcoins and a bunch of wannabee digital monies, the currencies of the future, they say, and a chance, if you buy low, to watch your money mushroom exponentially, legal gambling, oh boy, and a golden opportunity for untold riches. Without working! What’s not to like? Except, of course, bitcoin yesterday dropped 50% from its recent high. Nothing I like more than volatility in my money and I suspect most CEO’s probably feel the same way. Might as well use 2×4’s for currency. Lumber prices are spiking but futures are dropping. My kind of legal tender: legal timber. Which, now that I think about it, I have. My house. Times get tough, we tear off the back bedroom and sell the lumber. Bitcoins, good luck. The only thing backing that currency up is gullibility. Apparently there’s plenty of that.

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