How The Fed is Creating Inflation + Transferring Real Wealth to the 1%

The Federal Reserve is creating inflation, buying 85 billion dollars worth of bonds on the opening market, keeping interest rates artificially low. The printed money is then lent to the banks at nearly zero, who then loan it out to huge credit worthy investment firms like Blackrock, who are awash in a sea of money, and put it to use buying real assets (real estate/ homes in this case) that will increase in value as inflation rises.

The suckers who bought high, and got foreclosed upon or gave back the keys, or sold lower, have seen their welath go to Blackrock, owned by the 1% who, again are borrowing the money at next to nothing.


Housing prices rise, inflation will as well, it is an economic law. The only thing that really has kept inflation from rising is increased productivity due to technological innovations, be they fracking, Google dictation/ smartphones, robotics, etc.

This is a huge transfer of wealth to the 1%. Not so good for a level playing field.

Think I'm wrong, explain how, I'd love to here a counter argument.



Comments

Popular posts from this blog

"Big Data" - Who Makes Money off it + How does it Affect YOU?

Big Data is Electric - Who Is Set to Win the Data + Cloud Wars

Is Data Really the "New Oil?" (Hint: NO- here's why ...)