Saturday, December 12, 2015

Since the dollar left the gold standard in 1971, the U.S. has lost nearly 20% from the ranks of the middle class

The power to print money is the power to move wealth in whatever direction a bank, institution, or agency chooses.  By increasing a money supply, you move wealth upwards towards a small group of individuals that are financially and politically set to reap the benefits of asset price inflation.  And likewise, if you decrease that same supply of money, you tend to move wealth downward as asset prices sharply decline, and prices for products and services become beneficial to those who save money rather than invest in paper.
And as the Middle Class in America continues to decline in the shadow of the central bank’s unprecedented increase in the nation’s money supply, a new study from the Pew Institute parallels the fall of the middle class since the year 1971, and in particular, when President Nixon took the U.S. off the gold standard.


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