Prepare for the coming wealth transfer.
By Chris Martenson and cross-posted from Peak Prosperity.
Today we live in a two-faced economy: it is boom times for some and bust times for others.
Your personal situation depends largely on how close you fall on the socioeconomic spectrum to the protected elite class, towards which the central banks are directing their money-printing firehoses.
Why should we care about this bifurcation? History.
2,000 years ago, in Plutarch’s time, it was already ‘old wisdom’ that unhealthy wealth imbalances ended badly for society.
Even those near the top of the wealth pyramid don’t aspire to live surrounded by an impoverished underclass, forced to live hiding behind their fortifications and guards, hoping the unrest of the masses doesn’t get any worse.
But sadly, the US is not far off from this fate…this is Los Angeles:
The streets of San Francisco, Seattle, and a growing number of other once-proud American cities look very similar.
I care about our social stability which is why I believe in having a strong and vibrant middle class – something the US Federal Reserve is working to destroy with every intervention. It has been a shameless champion of the entrenched ultra-rich and powerful; at the expense of everyone else. Because of this, I’ve been a fierce critic of the Fed and its policies.
Money vs Real Wealth
I happen to know a good deal about our current system of money; how it is created, how it functions, its benefits and its darker aspects. I find it critical to remember that it isn’t actually “real”. Rather, it is a concept. Specifically, it’s a social contract. An agreement. Albeit one enforced at the end of a gun – or, as seen here, an eviction sheriff enforcing the local tax codes:
So while money isn’t “real” in itself, we value it because it is a claim on real things.
Having a lot of it currently entitles you to a great deal of privileges and power, which are a direct outcome of the spending of that money.
Money can be converted into houses. And cars. And massages. Also groceries, electricity, cell phone services and prescription drugs. These and ten billion other things are what money allows you to buy — the things you actually need or want.
So money is the means, but it is not the real wealth. ‘Real wealth’ is the things that money enables you to acquire…