I plan to deposit only in State Bank of India which is a nationalized bank. I understand that it is not insured but if SBI goes under then India itself can be considered insolvent. The SBI has the full backing of the Indian govt. If SBI goes under there will be chaos.
The alternative is to keep the money here as it continues to lose value due to inflation. I personally believe the CPI is a joke, I believe the inflation figures reported by shadowstats.com (around 6-7%) is more accurate. So each year i’m losing 6% of my savings. I can’t invest in the stock market because I think it has become nothing but a ridiculous casino.
As far as I am concerned what the US government is doing is nothing short of theft. Theft of money through inflation of people who have saved to finance their own agendas.
About the taper, I just don’t think a taper has any long term viability. I firmly believe that our economy is being held up solely by the governments stimulus. The moment they taper we enter into another recession and it could be a pretty bad recession.
I am of the belief that there are fundamental systemic problems in the US economy that the government has only addressed so far by flinging ridiculous amounts of money into the mix to temporary alleviate problems.
I seriously fail to see how higher interest rates are even possible IF with zero interest rates our economy is still under life support.
So, the moment the taper causes things to go south Yellen may start easing again, the dollar may come under pressure.
As for the claim that the economy is improving, it is nothing but utter rubbish. The whole thing is nothing more than smoke and mirrors.
