by Phoenix Capital Research
Finally the mainstream media is beginning to get the problems with the Federal Reserve.
The Fed claims it can generate a “recovery.” It cannot. The Fed’s
devaluation of our currency is the very reason why the economy is a
disaster.
According to the NY Times the average net worth for Middle class
Americans in 2010 was 6% lower adjusted for inflation than their average
net worth in 1989.
As the Times notes, these folks are “more educated and worked more
hours, on average, and had children at a later age” than their 1989
counterparts. But none of these compensated for the fact that costs of
living have skyrocketed between then and now.
As the articles notes, housing costs 56% more than in 1989, our of
pocket healthcare expenses rose 155%, college expenses are up in the
double digits.
The Fed is responsible for the Dollar devaluation that caused this.
The Fed is the one that eviscerated the Middle Class. Its policies have
lowered the quality of life for Americans. Period. End of story.
The fact that we’re now relying on these same folks to somehow fix
the problems they created by endorsing even more aggressive versions of
the very policies that created these problems is a dead end.
Sure, stocks will rise, but adjusted for inflation, Gold was a better
investment since we left the Gold standard in 1968. Indeed, the only
time stocks outperformed Gold from 1968 onward was during the Tech
Bubble.
And the Fed wants us to pile into stocks now while it’s boosting inflation?
We all know how bubbles end: BADLY.
The time to prepare for this is not once the collapse begins, but
NOW, while stocks are still rallying. Stocks take their time moving up,
but when they crash it happens VERY quickly.
For more market insights and commentary, visit us at:
www.gainspainscapital.com
Best Regards
Graham Summers
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