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To: AZLiberty

Explain how this manipulation is working and exactly how it makes some poorer.


10 posted on 09/07/2015 8:31:53 AM PDT by billyboy15
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To: billyboy15
Explain how this manipulation is working and exactly how it makes some poorer.

The Fed prints money, which it lends to the government at essentially zero interest rates. The money flows into the economy, largely to government, friends of government (e.g., Solyndra) and banks. There is a limit to how much stuff these folks need, so instead of buying stuff, they buy assets, including real estate and stocks, bidding up the price of both, and making them and their friends look richer. Bidding up real estate increases rents, making renters poorer.

Artificially increasing the difficulty of hiring people (through Obamacare and other regulations) increases unemployment, reducing the bargaining power of prospective employees. Etc.

27 posted on 09/07/2015 12:37:28 PM PDT by AZLiberty (No tag today.)
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