A lot of us don’t really grasp how immense a trillion dollars truly is. If someone spends a dollar every second, it would take over 31 thousand years just to blow through a trillion. Right now, the US is cranking out about a trillion bucks every 90 to 120 days. This cash isn’t earned or produced; it’s just printed money flooding the economy.
What’s wild is that the majority of people never actually see any of that fresh cash. Printing money doesn’t make everyone wealthier. It just makes the wealthy even wealthier. When the government churns out new money, it doesn’t just rain down from above. It trickles down through banks, hedge funds, companies, Wall Street and large asset markets.
As this happens, we see stock prices surge, real estate values rise, and commodity prices climb. The folks closest to the financial system get their hands on that new money first. The rest of us end up feeling the pinch later with skyrocketing costs. This whole situation is what’s known as the Cantillon Effect. Those who are near the money get ahead, while those farther away get left behind.
When a trillion bucks hits the system, the prices of groceries shoot up. Rent, gas, insurance, housing, and nearly everything else also becomes pricier. But wages don’t increase at the same rate. It feels like we’re losing ground because the value of money drops faster than we can earn. The system isn’t malfunctioning; it’s designed to work this way on purpose.
People who have assets grow richer without necessarily putting in more effort. They’re not always smarter or luckier; they just own things that appreciate in value when money is being printed. So, while asset holders are raking it in, wage earners and savers are left struggling. Holding onto cash means keeping something that consistently loses value.
And surprisingly, you still can not prove the claim of what exact amount of money they prints because it is regulated and those in the regulating positions will likely want to have some monies in their pockets and tells you a false figure they printed. Definitely you can not doubt them because you are not there where they printed them and it is not a transparent monetary system.
So you have no choice than to believe whatever they say.
If you want think the excessive amount of printed monies is a key drive to your savings loosing values over economy inflations, then don't hold your money for too in the banks. Invest it on assets that has hedges against inflations such as bitcoin, stock or real estate assets.
Crying out loud without taking drastic actions will not solve the problem.
Yeah the printed money are mainly used to make the government rich, donation and funding for banks.
The key of how the society will work very well is make sure people have no free time rather than focus to work for surviving. Most people nowadays are like that, people are working only for surviving every month and the government are happy with that.
They didn't count as unemployed and they also don't have a power to attack the government, a very good citizen.
I don't know whether it is an effort that the rich makes intentionally because they see that new money has been pumped into the system or that they are always investing, they seem to have this means to still live in good standard even in harsh economy or inflated economy. Truly I have notice that only a very few percentage fall out of that level of richness in their life time and such few are those who are not investing. I think they understand the economy business and how to stay on top. Bitcoin for example is becoming the new investment drive for the rich. They are leaving gold and stick, and investing in bitcoin which is yielding alot of return asset for the future and running against inflation. This is a lesson that savings in fiat won't make anyone rich but investment in bitcoin has a greater possibility for that change in finance status.
The system has been operating as it should from the past until now and has always been maintained by those in power. Those of us who have just realized this feel powerless to do more because they hold complete control. The difference now is that it's been refined to portray the government as the savior of the economy.
If only the people paid lesser attention to these rich politicians and focused more on the power they've got to run the society or community assigned to them, they'll be no much trouble about who prints a certain amount of dollar or not. All of that belongs to the top politicians it's their game, the people have powers to be their own magnificent lords and magistrate to create a better life by building more products in the farm, and lower the price rate at which food is sold to the society. This would take a better step at leveling down how everyone thinks so much about the government as though we are here to worry about them all our lives.
But this is how the system trapped us with no real possibility of escaping this mechanism unless we also end up rich and enjoy the benefits of inflation. We can't really beat the inflation though because the money printing decision is in the hands of leaders and the central bank so we all have to follow this but realizing is the first step and bitcoin provides as an opportunity to not use the rigged money but it doesn't solve the entire problem which needs much bigger reforming on the policy level of every country.
The entire "left vs right" was literally created because of this. Republican voters and democrat voters both have the same trouble, that trouble is republican politicians and democrat politicians. If only the voters realized that the problem isn't with each other, but with the ones in power, they would realize they hold all the power and they can throw down the government and all the bad people in it and elect people who would actually work for them instead of working for themselves.
This is true in almost every single nation too, democracy can be corrupted only by making sure voters hate someone other than the corrupt people, and USA does that very well. They literally turned their elections into a tv show, just to make sure people are not aware of the real trouble.
Until common people can't recognize their own power, its not possible for people to become cause of their own development. In our country people often prefer decisions of the government. They never think that real power are with them. all people should help each other together and increase production of those things that are essential for human needs. The greatest human need is food. If we keep food cheap it will be easy for us to live. No human being can develop until he tries for himself. Instead of waiting for decision of the government, try to bring about positive change in yourself. This will make our society progress and prosper. And people can succeed in solving their own problems. Also they will be able to live a comfortable life without any difficulties.
Inflation, Stagflation, Hyperinflation are all economic factors the government of the day use to keep it's citizens under control. Central Banks are intentional about excessive money printing mostly when countries spend more than they earn or take loans they find difficult to payback. The only way out is to grow our income if we must catch up with the hike in commodity prices that accompanies this inflations.
Any dog that goes around sniffing every corner trying to figure out the reason everyone at huge length have a high percentage of their life fixated on the government, its discovery would be the "great deception". Humans are of unique powers and capabilities capable to change a village or town, and promote environmental peace but the opposite is happening, because people are hoping on the government they'll relax over a single act of kindness that could save a home, and say it's the duty of the government.
Think of the pathological selfishness happening in the whole world, parents only pay closer attention to their own kids, which the government also found a way to be the cause of this, by allowing every responsibility pertaining to a citizens offsprings be theirs with little or help from the government, thereby making the capable ones to feel selfish over helping any issue that is not of their own kids, making the lesser privilege to stay unhelped.
The wealthy prepare by converting their money into assets that cannot be printed, such as gold, silver, bitcoin, and real estate. Every time new money is created, real assets increase in value. If a trillion is being made every few months and we do not feel richer, it means the money is moving past us, not to us. Learning about money and investing can help us be on the receiving side, not the paying side." - This phrase explains the situation and hints at what to do.
The problem with most people is that they consider money to be purely an asset to be exchanged for goods and services. Rich people consider it a financial instrument for making a profit. That is, the approach of most people, greatly exaggerated, is money = food, while smart people consider money = a tool to make even more money. Until people learn to invest and put money into something other than their basic needs, they will remain as they are. Poor.
You're right. That's the difference between the rich and the poor. Poor people pile up fiat in the bank for the future in order to take care of their future needs, they forget that keeping fiat in the bank will do more damage their financial success. Printing money increases inflation and inflation eats up the purchasing power of fiat overtime.
The rich understands how to multiply their money, they buy assets with it and make profits from it overtime. This is one of the reason why the rich people who invested in assets will become wealthy and the rich people in fiat will get poorer overtime.
You seem oblivious to the fact that most people who are employed in developed countries will own these assets through their pension funds that accumulate through their lives. Which means everyone in America is in receipt of that "rise in value" you mention. Not only that, inflation actually helps to decrease the value of debt that has already sold in the past, for example if America sells a billion dollars in debt to China and then devalues the dollar it will have to pay back less value. If used correctly at least, it can greatly benefit American citizens or countries that have similar scenarios. America as the reserve currency of the world actually has the most leverage to make use of this facility and are taking advantage of it - but it does reduce trust a little in their currency.
Inflation equally brings with it the level of opportunity as much as it brings hardship to the larger population. Inflation is an opportunity that is even a blessing to people because inflation actually is what makes people the rich because any the inflation rate of a country increases jobs are lost and the economy of such country is affected so your ability to create value in filling up this space will determine how wealthy you because.The rich is aware of its that is why the invest in assets that is not affected by the effects of inflation but appreciate even with inflation.
Lost of job must be called as a recession. Inflation on the other hand, makes the value of our money to be less. Even though some won't get laid-off but an inflation might still lead them to find an extra source of income, including working for another job, especially if they think investing can take time to support them on a regular basis.
I think that even if inflation is not a thing, people can still invest, although their numbers may not be as big as what we are having today. Investment instruments/assets may be a hedge against inflation but they still can be affected by other problems. There is still a risk on them, so extra care is always needed.
More like poor middle class, I would say. Poor people don't have much spare cash.
I would say there are two sides to this. On the one hand, they are more aware that inflation robs money of its purchasing power and they invest to protect themselves, but on the other hand, many investments beat inflation, so apart from protection, you get extra returns.
Conspiracy theories are always easier than accepting and acknowledging reality
It is human nature to look for the cause of a problem far away from oneself, one's actions, and one's habits. I always say that when you are dissatisfied with the situation in the country, don't look for culprits or enemies outside, remember who you voted for, what they promised you, and what they are actually doing. Many people dislike this approach because it turns out that in the current situation, you are directly or indirectly to blame, or your actions or inaction have led to this.
Certainly, money printed by the country will first enter through the central bank owned by that country for distribution. Of course, that money is owned by the country, not by private banks, hedge fund managers, nor through stock exchanges like Wall Street, let alone just cooperatives. But it will be distributed to the people or for the development of the country or to pay debts through the central bank of that country.
Certainly, the large amount of money circulating will cause significant inflation, and the purchasing power of that money will decrease.