(Daily Signal)—Make no mistake, the recent scourge of inflation and high interest rates has been a heist buried beneath economic jargon.
It has transferred a tremendous amount of wealth from hardworking Americans to the federal government.
The root cause of this disaster—reckless government spending and money-printing—should serve as a reminder that the federal deficit is the bank robber, the Fed is the getaway car driver, and you are the bank.
The past few years have seen consumer goods prices increase more than they had in the prior 30 years, while staggering price increases for construction materials have helped push homeownership out of reach for tens of millions of Americans.
This whirlwind of economic horrors comes from the combination of dramatically expanding government spending and a Federal Reserve willing to print enough money to paper over deficits with inflation.
Since the beginning of COVID-19, the annual level of federal spending has increased 45%, while the Fed has increased the money supply by 37%. Spending newly printed dollars in this way doesn’t magically create new goods and services. Instead, it has created the classic recipe for inflation; namely, more dollars chasing fewer goods and services.
This policy has inflated away nearly 20% of the purchasing power of the dollars in your paycheck and bank account.
Consumer goods price increases from October 1990 through January 2021 ran about the same as the increase from January 2021 through June 2022—roughly 14.3%. In other words, about 30 years of price increases thrown at households in less than a year and a half. To make matters worse, the increase in construction materials prices has been even larger, 26.4% since President Joe Biden took office.
No wonder house prices have soared over the past few years. While this does increase the equity of current homeowners, it also tends to lock people into their current homes and box young families out of owning a home altogether.
When the government runs a large deficit—as it is now with over $2 trillion in annual deficits—the Fed has a choice: It can print money to accommodate and soak up the new debt, creating a ticking time bomb of inflation, or it can leave the money supply unchanged and allow federal deficits to crowd out private access to funding, sending interest rates through the roof as money becomes scarcer.
That leaves prospective homeowners without financing to buy a home and leaves businesses without investment capital to expand operations and create more jobs and goods and services.
With inflation rapidly climbing early in 2022, the Fed chose the latter. By pushing interest rates higher, the Fed didn’t alleviate the burden of high levels of government spending. It simply shifted the pain of the burden from runaway inflation to runaway interest rates, exacerbating the worsening financial picture for American families.
Mortgage rates soared from around 2.8% in January 2021, when Biden took office, to over 7.5% by October 2023. The Fed, on its own, couldn’t remove the burden from American families, it could only choose the type of burden.
That has left homeownership less affordable than it has been for generations. In January 2021, first-year interest costs on a typical new mortgage were around $8,200, or 16% of a full-time median worker’s annual pay when President Donald Trump left office. Today, it’s around $21,900, consuming more than 36% of a full-time median worker’s annual pay.
This bludgeoning will, tragically, have lingering effects as well. Today, a new mortgage on a median home will cost $320,000 more in just interest costs over 30 years than that of a mortgage from the end of 2020—a tremendous 257% increase in total mortgage interest costs.
If a new homeowner were able to, instead, keep this money and invest it over the same 30-year period, he or she could easily have more than $1 million more saved up for retirement.
The cost of the inflation and interest rate surges have levied a truly crushing burden on the backs of hardworking American families that will likely echo through generations to come.
It’s becoming increasingly clear that fiat currencies across the globe, including the U.S. Dollar, are under attack. Paper money is losing its value, translating into insane inflation and less value in our life’s savings.
Genesis Gold Group believes physical precious metals are an amazing option for those seeking to move their wealth or retirement to higher ground. Whether Central Bank Digital Currencies replace current fiat currencies or not, precious metals are poised to retain or even increase in value. This is why central banks and mega-asset managers like BlackRock are moving much of their holdings to precious metals.
As a Christian company, Genesis Gold Group has maintained a perfect 5 out of 5 rating with the Better Business Bureau. Their faith-driven values allow them to help Americans protect their life’s savings without the gimmicks used by most precious metals companies. Reach out to them today to see how they can streamline the rollover or transfer of your current and previous retirement accounts.
The Best Thing for America Would Be a Donald Trump Blowout
by The Federalist
If Democrats had their way, Donald Trump wouldn’t be anywhere near the presidency again. So wrote MSNBC’s Hayes Brown on the eve of the 2024 election’s final day. But Trump is near the presidency — perhaps by decisive margins — and Democrats are apoplectic. The “biggest contributor to the unease…
If These Two States Go to Trump Early, We Can Have Results on Election Night [VIDEO]
by Rumble Video
Two blue states, Virginia and New Hampshire, are in play during the presidential election based on the most recent polling data. If Donald Trump can achieve victory in both of these states early, it’s possible that we can get election results on Election Day. Otherwise, it could be weeks…
Most Accurate Pollster From 2020 Drops Final Numbers
by JD Rucker
Atlas Intel, which was hands down the most accurate public poll during the 2020 election, just dropped its final poll of the season. It points to landslide victory for Donald Trump. If Kamala Harris is able to win Minnesota and Virginia, two blue states that are in jeopardy of being…
Vivek Ramaswamy’s ‘Anti-Woke’ Financial Firm Moving To Dallas
by Dallas Express
Strive Enterprises, co-founded by former Republican presidential candidate Vivek Ramaswamy, is slated to move its headquarters to Dallas. The wealth management firm, launched in 2022, is known for its “non-woke” and anti-ESG exchange-traded funds (EFTs). ESG, which refers to environmental, social, and governance policies, is incorporated into the investment mandates…
Regardless of who wins the election, economists are pointing to physical gold and silver as hedges against economic turbulence ahead. Reach out to our sponsors at Genesis Gold Group, a faith-driven precious metals company, to learn how you can rollover or transfer your retirement accounts into a Genesis Gold IRA.
Fed Set to Shift to Moderate Interest Rate Cuts, but the Path to Lower Rates Remains Uncertain
by The Epoch Times
The Federal Reserve’s policy-making arm, the Federal Open Market Committee (FOMC), will likely shift from the aggressive interest rate cut during its September meeting to a moderate cut in its November meeting, to be held on Nov. 6 and Nov. 7. However, the path to lower interest rates remains to…
10 Times as Many Illegal Immigrants Came to US as Jobs Were Created Under Biden-Harris Admin in October
by The Post Millennial
The Biden-Harris administration allowed for 10 times the number of illegal immigrants into the US in October as jobs created by the private sector during the same time. This comes as border and economy have two of the top main issues for voters in the election. While businesses only created…
It Was the Night Before the Election, and Everyone Was Freaking Out
by Michael Snyder
(End of the American Dream)—I have never seen so much doubt, worry, anxiety, fear and panic as we approach a presidential election. All over the country, people are freaking out right now. Democrats are freaking out because the early voting numbers are so dramatically different from 2020. Republicans are freaking…
Losing Power? The Elites and the Leftist Mob Would Rather Burn It All to the Ground
by Brandon Smith
(Alt-Market)—It’s been a long time since we’ve seen a significant positive evolution within American society. In the early days of the Ron Paul movement I remember the hopeful groundswell of support for a new conservative epoch that adopted a little Libertarianism and a recognition that most “conspiracy theories” are actually…
“Not Patterns That You’ve Seen”: CNBC Guest Says Many Trump Voters Were Democrats “20 Years Ago”
by Harold Hutchison, Daily Caller News Foundation
(DCNF)—A former Trump administration official told CNBC host Joe Kernen Monday that a lot of voters who backed former President Donald Trump were Democrats during the 2004 election. Trump has gained support among both black and Hispanic voters, largely due to the economy and immigration, before President Joe Biden announced…
The New Kennedy-Nixon Moment: Why Politicians Must Master Podcasts to Win
by Daily Signal
(The Daily Signal)—Jeff Bezos is right. Americans do not trust the news media, but he misunderstands why. Americans are tired of talking heads and the opinions of editorialists masquerading as journalists. But this should not be confused with declining interest in news or politics; viewers are simply moving to channels…
‘All Government’: JD Vance Spotlights the ‘Kamala Harris Economy in a Nutshell’
by Daily Wire
Sen. JD Vance (R-OH), a venture capitalist-turned-politician who is now the running mate of former President Donald Trump, argued this weekend that the U.S. economy under their rival in the 2024 White House race, Vice President Kamala Harris, is defined by a growing number of government jobs while the private…
Final Reminder of the Three Issues Driving This Election
by JD Rucker
(Substack)—In case you hadn’t noticed, tensions are high. Americans are at each other’s throats — sometimes literally — as we approach the finale of the most insane election cycle in history. The sitting President ended his bid for a second term. His opponent was charged with dozens of made up…
If Kamala Wins, Prepare for Climate Change Authoritarianism and the Destruction of America’s Economy
by Ethan Huff, Natural News
(Natural News)—When it comes to “green” energy policies, California is often looked at as the model and example for other states. Did you know, though, that California ranks barely above the world average for so-called “fossil fuel” usage, even as it sits on large reserves full of crude oil and natural…
20%?! Not possible. Social Security is only increasing by 2.5%, which is the rate of inflation. They wouldn’t misreport it to defraud the elderly…