Today, we are amid a destructive transpiring of events that will accelerate into the eradication of America’s middle class.
For over a decade, the U.S. middle class has been robbed of TRILLIONS of dollars in wealth accumulation via the mechanism of suppressed rates by the Federal Reserve’s efforts to prop up the stock market. Because of the Fed’s relentless efforts to suppress rates, the stock market, as well as the real estate market, has vastly inflated. For most, these gains exist soley on paper. In other words, the gains are not “realized” by selling these assets.
Paper gains are just that: On paper, they do not exist; they are not on the elemental chart. They are fairy dust!
The probability that these fairy dust/paper gains, which are now in a massive bubble and belong to members of the middle class with stock portfolios and real estate investments, will disappear in the long run is 100 percent.
So, what’s really going on?
I have been sounding the alarm for many years that the middle class is under direct assault via the mechanism of suppressed rates, and trillions of dollars in potential realized wealth has been – and continues to be – legally stolen from them. “Realized” because these gains would have materialized in their interest-earning accounts via compound interest.
Compound interest is the addition of interest to the principal deposit. In other words, interest on interest over time. This loss has cost the middle class very dearly… to the tune of many trillions of dollars.
But it gets worse…
The mechanism of suppressed rates has created an environment in which the current interest paid on an existing interest-bearing account is less than the current rate of inflation. The result is a net loss of net realized wealth in real terms of purchasing power… the equivalent of GRAND THEFT ON AN EPIC SCALE.
Indeed, the suppression of rates has created monster bubbles in both the stock market and in the value of real estate, again, on paper. But the fact is these bubbles will burst at some point.   When they do, it will further devastate the middle class as they watch, with little to no recourse, their paper investment profits instantly evaporate.
What will happen then is the accumulated paper wealth will be simply transferred from their reality to that of the investment SUPER banks, the Wall Street hedge funds, and to traders, like myself, who are aware of how to capitalize on the price action of falling assets.
By Gregory Mannarino,

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