When will the bubble pop?
The huge increase in the money supply by the Federal Reserve combined with deficit spending are creating an inflationary scenario that will be destructive to every family.
Those on fixed incomes and those who are within the lower- to mid-income economic level will be hit the worst.
Wherever I go to speak, I ask people how many believe inflation today is at the official government rate of 1%.
Usually people think it’s between 7% to 10%. Many private economists say it hovers over 10% to 12%.
But this is just the beginning.
The massive increase in the money supply has basically been fueling the stock market and increasing the money supply of the financial community.
Those in the financial business have profited from this increase in the money supply–the politicians have benefited from the increase in the money supply–but all of us are going to suffer from its damaging consequences.
We can see from the 10.9% inflation rate in Argentina–which led to riots, shortages and lines–that the consequences are going to be devastating.
Consumer prices overall have risen 6.4% since 2011. Take for example, poultry, which has risen 18.4%, ground beef 16.8% and bacon 22.8%.
But median income has gained just 1% in the past year.
Everyone is struggling.
Real wages are stagnant, prices are rising and we’re all getting poorer.
But the politicians are still willing to spend lavishly; they’re still willing to increase the budget; and they’re still willing to keep destroying our economy, the middle class and our kids’ future.
The damage left to our children is already immense and will have long-term consequences.
The damage to those on fixed income is inexcusable, and the politicians pretend to be their friends.
We need to bring about economic sanity to Sacramento and Washington, D.C. and we’re running out of time.
What do you think the solution is? Let me know at [email protected].