| By Bill Bonner Wednesday, April 28, 2021 YOUGHAL, IRELAND – Finally, The Washington Post catches on… The Fed helped fuel a stock market boom that benefited wealthy Americans – and left behind everyone else Ever since the Covid-19 pandemic struck, the Federal Reserve has gotten plenty of kudos for moves that have helped stabilize the economy, kept house prices from tanking and supported the stock market. But those successes have obscured another effect: the inadvertent impact the Fed’s ultralow interest rates and bond-buying sprees are having on economic inequality. Long-standing inequality in the United States has been exacerbated by the Fed’s role in touching off a multitrillion-dollar boom in stock markets – and stock ownership is heavily skewed toward the wealthiest Americans. As we’ve been saying for years, the Federal Reserve’s money-printing is not “stimulus.” It’s a wealth transfer scheme. The rich get richer; the poor get poorer – thanks to the feds. Real economic growth actually slows down as the stimulus burden (debt and phony interest rates) grows heavier. The Fed’s key interest rate has been below the level of consumer price inflation for most of the last 11 years, while U.S. federal debt has more than doubled to $28 trillion. Yet, in the last four years, GDP grew at the lowest rate since the Great Depression. |
| Recommended Link | TONIGHT AT 8 P.M. YOU DON'T MISS OUT! According to master trader Jeff Clark… 2,887 stocks have soared 100% or more… showing you nearly 3,000 chances to double your money – more than 50 times per week on average! And the Federal Reserve predicts this year could be 2X BIGGER than the dot-com boom… In his first big event of 2021, Jeff explains everything… Join the live stream tonight at 8 p.m. You don't want to miss out on this amazing opportunity! (By clicking the link, your email address will automatically be added to Jeff's RSVP list.) | | | -- | Docile Capitalism So, it’s not taxes… not greed… and not r > g (French economist Thomas Piketty’s observation that the return on capital generally exceeds the rate of economic growth) that is responsible for such a big gap between rich and poor in America; it’s the government. In his 2013 tome Capital in the Twenty-First Century, Piketty claimed that the rich always get richer. He recognized that they “captured” the government and used it to help protect their wealth. But he missed the point. The elite always controls government… and always uses it to try to stay elite. But mating capitalism with government gives birth to a corrupt and sterile offspring, where the motive force of real progress – creative destruction (the collateral damage of a constantly evolving economy) – has been bred out of it. In its new, gelded variety, capitalism becomes docile… and will do what it is told. Big businesses are no longer supposed to focus on their customers. Instead, they are expected to promote the elite agenda – money-printing, diversity, wars, global warming, racism… whatever the elite wants. In return, like young princes who will never wear the crown, they are subsidized… bailed out… made into celebrities… and treated like quasi-public institutions. [Featured: U.S. Govt. Has $1 Billion Bitcoin Stash?] Comedy or Tragedy? Civilization is what you get when you allow vernacular rules – private property, math, speech, writing, real money, and “do unto others as you would have them do unto you” – to develop naturally. These rules – these “restraints” – are what make it possible. What we call “capitalism” is merely the expression of the rules in economics – that is, it lets people get on with their lives and do their win-win deals. But what a boring church it would be if no one ever tippled the sacramental wine! And what a dull world it would be if people just went about their business… respecting the rules of civilization… doing their win-win deals… making each other happier and richer. What would history be without a jackass like Robespierre… or a monster like Cromwell… or a beast like Mao? And what would today be like without a Trump or a Biden? No, Dear Reader… we live in the world we are given. And it is either a comedy or a tragedy, depending on how you look at it. Fake Wealth We prefer to see the amusing side, trying to avoid getting huffy about the imbecility and venal sins of our fellow man. (We bid him to do likewise.) So we laugh at The Washington Post. The leading news source for the Deep State elite is not about to come to the obvious conclusion – that stimulus money-printing should be stopped. Deficits and the fake money are how the elite protect and expand their wealth. They are the rewards they get for “capturing” the government. Yesterday, we guesstimated the value of that reward at $30 trillion. That is the difference between the value of household financial assets in a normal, civilized economy and those in today’s corrupted, financialized capitalism. Between the end of World War II and the end of the 1980s, financial assets averaged about 350% of GDP. They are overwhelmingly owned by the elite, so when they go up faster than GDP, the rich get richer, compared to the rest of the population. [Featured: What Will Happen After Millions Get Vaccinated?] Today, financial assets are around 500% of GDP. By our rough calculation, that is at least $30 trillion more than they “should” be. And since GDP did not keep up with it, it does not represent new wealth, but only a new claim on the existing wealth of the rest of society. Here’s another way to look at it. During that same “normal” period – the late 1940s to 1990 – the value of all the publicly traded stocks in America was about 80% of GDP. Today, it is 195%... more than twice the “normal” rate. That alone has added nearly $20 trillion to the wealth of those who own stocks – again, the elite. Any way you cipher it, it’s the biggest rip-off in the history of the world. | Recommended Link | The 3-Stock Retirement Blueprint When most folks think about making money through the markets, they think "buy and hold." They think "diversification." And they think about investing in things like index funds. But one man has a different approach… It's called the "3-Stock Retirement Blueprint." It's a way to play 3 stocks — yes, just 3 — and potentially make more money than you would by trading all the rest of them… Or by using an old-fashioned approach. Sound impossible? Get all the details here — including the names and tickers of the three stocks. | | | | Fix Inequality The Washington Post and the rest of the elite media, economists, politicians, and business leaders are not about to stop it. An honest money system is the last thing they want. Instead, they propose to take the rich behind the woodshed… and give them a good talking-to. Raising taxes on “the rich” gives them a controllable… lobby-able… way to at least appear to fix the “inequality” problem, without really fixing anything… without squeezing rich party donors too hard… and without interrupting the scam. And they put Bernie Madoff in jail! Ha! Ha! More to come… Regards, Bill
Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com.
MAILBAG A suggestion for Bill… a dear reader agrees the feds’ fake-money economic boom is a “freak show”… and another echoes the insanity of the U.S.’ road to ruin… I would like to comment on your pejorative “‘sleepy’ Joe Biden.” I think Donald Trump used the same descriptor for Mr. Biden to great effect for me. I am reminded of some schoolyard bully taunting another youngster about some defect in stature/personality/intelligence. Sir, you do yourself a disservice with this style of rhetoric. I love your writings on Argentina, Ireland, politics and economics, etc. Please keep up the good work and leave aside schoolyard taunting. – Dean W. Low unemployment, caused by government checks amounting to $900/week, resulting in thousands not returning to work but spending their time shopping. I’ve been attempting to purchase a new revolver. The factory has insufficient help due to government checks removing all incentive to work. Consequently, the projected time to receive the revolver is 14 months. I need a Ford part to repair the 4-wheel-drive on my F150. I’ve been waiting six weeks, with no part in sight. Government meddling has always been the quickest way to screw up a good thing and the virus provided an excellent vehicle. – Greg S. Doubt the federal government infrastructure bill has a plan to exit off the road to ruin. Just more roundabouts. Since we’re in the free-money giveaway mood and need to fix the world by 2030, I expect the government will be pressured soon by the racial activists to come up with a repatriation plan for all the sins the “white privileged” have bestowed upon society since they arrived here. – Michael M. Have you noticed product shortages to the degree that Greg has? Has your business been affected by employment shortages due to government stimulus? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… Biden’s “Invisible Tax” Will Wipe Out Your Savings Don’t be fooled. They’re not just going after big companies. A new breed of taxes that most Americans have never heard of is proposed, with strange names that will shock you. Even worse, the reasons for these taxes are absurd. What’s more bizarre is a faceless and powerful group is pushing these strange taxes. And Joe Biden said “yes” to their plan. It could wipe out your savings and hopes of the American Dream. To Prepare, Get Full Story Here. 
Get Instant Access Click to read these free reports and automatically sign up for daily research. | 
Tidak ada komentar:
Posting Komentar