The Fed is keeping the fact that they are devaluing our money hidden. This devaluation will eventually reveal itself and will most likely happen very suddenly. Let me give you an example that holds true for anything of value: currency, stocks, bonds, land, precious metals, businesses, etc. While I use a termite damaged house in this example, each of these items of worth has similar issues that eat away at its value. For currency, it is lower than market interest rates and QE. |
| If you knew that a house became devalued because you saw evidence of severe termite infestation but no one else believed you, and they continued to value the house as solid, then the house would continue to rise in value. However, if it suddenly became very apparent that there was significant damage and an exterminator showed evidence of widespread structural damage, then the value of that house would suddenly experience a mass realization of lower value. |
In reality, the real worth of the house was dropping every day, but since people kept buying and selling the house at a solid price, the value did not change until the realization of structural damage occurred. There is often a time period where some people see the evidence of devaluation, but most do not. The price can go up significantly, and then something happens that reveals the real worth and the price crashes rapidly. |
| Is it unwise for someone to buy a house with obvious flaws at regular prices when they have knowledge of those flaws if they think the house will continue to rise in price? They do not want to miss out on the 80% gain in prices they might be able to attain, so they take a risk so that they can sell the house before the mass realization of devaluation occurs. When this realization occurs, the crash happens. Often, different sectors of the economy are dragged along with it. |
Let say you bought two percent of a business and then you and all the other owners suddenly realized the person running the business sold two percent of the business to one hundred people, thus giving 100 people each a 2% stake in the business or 200%. You and the other owners would suddenly realize you and the other owners only owned 1%; thus everyone would have a sudden realization of a devaluation of their worth. Yes, you and the others could sue him and press criminal charges. However, you still would only own 1%. |
The Fed is doing this with QE. Every time the Fed introduces new money into the system without backing it up, the value must come from all the other dollars in existence. Is There really Inflation? QE=$772 Tax per Month per Family Quantitative Easing (QE) = Devalued Money A New House as Capital for New Currency |