Right now what is going on is the fed is loaning money to banks at 0%, the banks are buying treasury bonds which pay 4% and so they get free money fix their balance sheet at our expense. Every dollar the FED prints the less the money you own is worth.
Earlier you argued that people are not saving too much. However, your article says that people are in fact saving so much that the Fed is trying to turn them away. According to the article, the Fed first dissuaded savers by lowering the interest rate to zero, and when that proved ineffective they bought back the treasuries they had previously issued. I assume you have withdrawn your earlier argument.
I think your point now is that the government should not have bailed out the financial sector. That's a different discussion that should have its own thread. Perhaps your point is that the Fed and the Treasury are working against each other? I don't distinguish between the two and believe Bernanke/Geithner work hand in hand, but again that's a different discussion.
Also, for accuracy's sake, treasuries are not paying anything close to 4%, unless you're looking at very long term rates which are neither here nor there.
You jump around a lot, which makes it difficult to see the point you are trying to make. Unless you want to revive your "society can never save too much" argument, I would like to end this discussion.
Right now what is going on is the fed is loaning money to banks at 0%, the banks are buying treasury bonds which pay 4% and so they get free money fix their balance sheet at our expense. Every dollar the FED prints the less the money you own is worth.