While 3 Americans possess more wealth than 50% of the combined poorest,
we now learn that 20% of ALL Americans have zero or negative wealth. I
presume by having “negative wealth” they have lived beyond their means
for so long their debt burden is all they have to show for their life –
very sad that people allow themselves to be put in that position.
The wealth inequality in America is largely the function of the
Federal Reserve system that operates through the U.S. Treasury. Without
this mechanism of wealth transference the current wealth imbalance would
not exist – it would be almost impossible to have the number of
“millionaires”, “billionaires” that currently roam the earth. These
people would still be wealthy, but their wealth wouldn’t be completely
out of balance with the mass of people.
Millions of Americans are living on the edge.
One in five households has zero or negative wealth, according to a
report released this week by the Institute for Policy Studies, a
progressive think tank based in Washington, D.C. What’s more, an even
greater share of African-American (30%) and Latino (27%) households are
“underwater” financially. The combined impact of
$1 trillion in credit-card debt, $1.4 trillion in student loan debt, and stagnant wages are taking a toll.
U.S. homes have regained value since the Great Recession, but many
households have not. “Millions of American families struggle with zero
or negative wealth, meaning they owe more than they own,” the report
found. “This means that they have nothing to fall back on if an
unexpected expense comes up like a broken down car or illness.” And
inequality could get worse through new tax cuts for the wealthy.
Source
The mainstream media, once again, plays their role in keeping people ignorant. Instead telling people the truth about U.S. homes have regained value since the Great Recession
and calling it what it is – massive inflation on the edge of
hyperinflation – it is played off as some type of benefit for the mass
of people – it is not. It is a benefit for the top 0.01% only as they
already own, outright, their land, their businesses and our land and
businesses. If a person purchased a home 20 years ago for $50k and today
that home would sell for $2mm where would that person be able to
replace their home, in the same neighborhood, and realize that gain? It
wouldn’t happen. This is not an increase in value it is simply
inflation.
President Trump’s tax proposals won’t give America’s
middle class the reprieve they need to grow their wealth and recover
from the financial crash, said Josh Hoxie, who heads up the Project on
Opportunity and Taxation at the Institute for Policy Studies. A recent
analysis by the
Joint Committee on Taxation concluded that taxes would decline for all income groups, with the biggest percentage-point decline for millionaires. Source
The current tax proposals, like past tax proposals, are for the
wealthy to further strip-mine the poor. Having 3 people with more wealth
than 50% of the poorest is not good enough – we need to have 3 people
with more wealth than 75% of the poorest – that’s progress!!
On the other hand we see the other form of “hidden theft” – Inflation. We
are beginning to see the cracks in the economy become cavernous while
inflation continues to rise chewing up any hope of savings the poor
could possibly amass. It’s like a trifecta of wealth transference.
With more pay-day-loan shops (loan sharks) popping up everyday it
seems the system is going to continue to exploit and strip the poor of
whatever wealth they currently posses. As I stated at the beginning of
this article it is simply the Federal Reserve system doing exactly what
it is was designed to do – shift the wealth of the many to the few and
with the Federal Reserve Note past it’s peak and headed to the dustbin
of history the transfer of wealth, it seems, has adapted a particular
sense of urgency.
 
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Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
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The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
