How the Federal Reserve Created an American Caste System

In 1913, Woodrow Wilson and his progressives promised that the Federal Reserve would avert both depressions and inflation, while preventing the wealthy from controlling Americaโ€™s financial markets at the expense of the poor.

More than a century later, itโ€™s clear that was all a lie, and the Fed has helped create a permanent American underclass.

The Fed was designed to transfer wealth from the American people to the government, mostly through the hidden tax of inflation. But this process has prevented countless American families from being able to save and get ahead, because their savings are constantly losing value.

For two decades, the Fed kept interest rates artificially low to help finance massive government spending. When that spending reached unprecedented heights in 2020, the Fed intervened more drastically than ever, creating trillions of dollars and devaluing the currency.

Thus began an unparalleled transfer of wealth that continues to this day, and which has driven a wedge between different groups of Americans.

The painful inflation of the last three years has increased prices throughout the economy, distorting the signals that prices are supposed to convey to buyers and sellers. For example, the cost to own a median-price home today has doubled since January 2021, but itโ€™s still the same house.

This phenomenon represents the monetization of housing, where a dwelling becomes a much better store of value than the currency, even if the real value of the house hasnโ€™t improved.

Likewise, Americansโ€™ earnings have increased substantially over the last three years, but not in the most meaningful senseโ€”that is, what they can buy. Instead, the opposite has happened, and todayโ€™s larger incomes buy less.

What would have been a decent salary in 2019 is no longer enough to even get by in many places, and itโ€™s certainly not enough to ever fulfill the American dream of homeownership.

A family earning the median household income can afford a median-price home in only a handful of major metropolitan areas in the entire country. In many cities, the cost to own a median price home exceeds the take-home pay from the median household income. Even if you didnโ€™t spend a dime on other necessities such as food, you still wouldnโ€™t have enough for your mortgage payment.

Byย E.J. Antoni

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

Was Pope Francis the Worst Pope Ever?

It has been said the recently passed 266th Pope...

LGBTQโ„ข Roundup: Groomers Gone Wild, Pt. II

Trans activist gets triggered by BBC reporter telling him he can't use womenโ€™s toilets, according to UK Supreme Court ruling on the legal definition of women.

In Trade War, Chinaโ€™s Chokehold on US Medicine Moves Into Spotlight

Chinaโ€™s iron grip on supply of critical drug ingredients has been years in the making, driven by Beijingโ€™s strategic plan to dominate the pharma industry

College Footballโ€™s Spring rite

The Blue-White game, with the antiquated press box and a large section of the west stands now history and under renovation, marches on, but for how long?

Everything We Know About El Salvador Deportee Abrego Garcia

For more than five years, Kilmar Abrego Garcia was an adjudged illegal immigrant living on borrowed time in the United States.

News

Trump Admin Asks Supreme Court to Allow Prohibition on Troops With Gender Dysphoria

Trump admin is asking Supreme Court to halt federal judgeโ€™s order preventing it from implementing policy disqualifying individuals with gender dysphoria.

DHS and Country Star John Rich Team Up for Urgent Livestream about Protecting Kids from Online Predators

Know2Protect hosted a livestream featuring DHS Special Agent Dennis Fetting and country music star John Rich on protecting children from online predators.

US Manufacturing Shows Signs of Improvement as Factory Output, Orders Tick Higher

U.S. manufacturing showed modest but meaningful improvement in April, according to data by S&P Global, which showed factory output and orders ticking higher.

Trump Admin Sued by a Dozen States in US Trade Court Over Tariffs

A dozen states on April 23 filed a lawsuit against the Trump administration in the U.S. Court of International Trade over its recently announced tariffs.

Supreme Court Seems Inclined to Let Energy Companies Sue California Over Emissions Rules

Supreme Court seemed inclined during oral argument to revive a lawsuit filed by energy companies over Californiaโ€™s tough vehicle emissions standards.

FBI: Losses From Internet Crime Surged 33 Percent in 2024, Topping $16 Billion

Internet-enabled crime cost victims in the U.S. more than $16.6 billion in 2024, a record-breaking 33% increase over previous year, according to FBI report.

Fedโ€™s Kugler: No Rate Cuts in Sight as Inflation, Tariffs Fuel Uncertainty

Federal Reserve Gov. Adriana Kugler said she supports holding interest rates steady due to ongoing inflation risks and new tariffs

IMF Predicts US Fiscal Deficit to Shrink in 2025 Due to Tariffs

The Trump adminโ€™s tariff policies are expected to bring down the fiscal deficit of the U.S. this year, the IMF said in an April 23 report.
spot_img

Related Articles