In my previous article, “ERADICATION OF THE MIDDLE CLASS,” I outlined how the American middle class is systematically being eradicated in what is a remarkably successful effort to keep the stock market hyper-inflated.
For over a decade, the middle class, the real economy, has been legally robbed blind of trillions of dollars in realized wealth via suppressed rates… and soon it will get even worse.
This past week, we heard from the Federal Reserve that interest rates will be kept near zero for the foreseeable future. Moreover, the Fed is in the process of increasing its purchasing of mortgage-backed securities and Treasuries. In addition, the Fed will be increasing its purchases of corporate debt, which, in and of itself, is a backdoor bailout scheme. The Fed stated it will work diligently to cause inflation to rise, not just hitting its long-term 2 percent inflation goal but exceeding it.
Let’s now put this into perspective: Banks can borrow cash directly from the Federal Reserve at zero percent interest and then lend that cash out for a profit. Today, the average personal loan rate is north of 9 percent. The average auto loan, if you have a credit score of 750 or higher, is around 5 percent; if you have less than stellar credit, you’ll pay over 11 percent interest for that same loan. The average credit card interest rate is 16 percent. If you’re one of the few who have a perfect credit score, you can get a mortgage with a rate of around 3 percent… if you can afford to front at least 20 percent for the down payment.
Looking a little deeper into this banking scheme… the Fed, in keeping interest rates at near zero, is clearly a boon for the banks. These institutions get to enjoy not paying their depositors anything that resembles a real rate of return on their interest-earning accounts. Today, the average savings account yields a yearly rate of return of a paltry 0.06 percent.
According to government statistics, the current average inflation rate in the United States over the last 12 months is 1.3 percent. What this means is that just over the last 12 months, the average saver lost 1.24 percent of their purchasing power in regard to the cash in their savings account, which is exactly the same as the government reaching their hand into these accounts and stealing money from them!
We realize that government numbers/statistics are pure fabrications and thus have no real bearing on reality.
Multiple, unbiased private-sector efforts to calculate the true rate of inflation have yielded a rate of around 7 to 13 percent per year, depending on the location in the U.S. In other words, the middle class is a victim of grand theft on an epic scale.
To make matters even more insulting to Americans, corporations, and even entire industries, are getting direct government bailouts. These are the same corporate entities which have been buying back shares of their own stock for over a decade.
As an example, the airline industry recently received a $25 billion bailout from the Trump administration and is now asking for a second bailout … or else they will lay off tens of thousands of employees. Thus far, American Airlines has spent $12 billion on stock buybacks; Delta Airlines, $11 billion; and United Airlines, $10 billion. Shouldn’t these corporations be forced to liquidate those shares PRIOR to receiving a second bailout?
Just this past week, “U.S.” farmers received their third bailout from the Trump administration, to the tune of $14 billion, with much of that cash going directly back to – of all places – China. Yes, China, which owns and operates multiple, large farms here in the U.S. (China has been buying up U.S. farmland for years and is legally entitled to bailout funds.)
As Gerald Celente says, “Welcome to Slavelandia.”
And as Gerald Celente quotes from the late, great George Carlin, “It’s all one big club… and you’re not in it.”
By Gregory Mannarino, TradersChoice.net
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