FreeMarkets (99.20)

Middle Class Millionaires

November 04, 2010 – Comments (0)

You've heard the saying "Money can't buy happiness.", well we're fast approaching a time when "Money won't buy anything."

This latest $600 billion QE2 is going to make the stock market skyrocket.  401k's will blow past their all time highes, the people will see an ever increasing value in their retirement funds.  Millionaires around the country will be created.

Then these new millionaires will attempt to spend their money and you'll hear the following phrases: "Remember when you could get a decent car for $20k?"
"When I was a kid $1 bought a dozen eggs, now it buys 1 egg."

The middle-class median family household income will easily surpass $100,000 and they'll be poorer than ever, but they will scrape by.  It's the poorest Americans who will be hurt.  Minimum wage laws will no longer set the floor of wages because inflation will make them meaningless, unless updated semi-annually.

But who will come to the rescue?   Thankfully the people who created the problem will come up with a solution.  Yes, the Federal government and the Federal Reserve will establish a food bank to help pay for the food that the poorest Americans can't afford. Once the Fed Gov't passes the law, the FED will be nice enough to monetize the debt through its own purchases, and no one will be able to say they aren't working hard to help the American people through these tough times.

Of course the rich will get richer by getting this inflationary money into their hands first, and will show their kindness by giving millions to charities and making sure they are heavily publicized in the process.

Taxing the rich won't dent the trillions of debt, but our growing enemy who sell us everything - those nasty Chinese * - will be a ripe target.  The Chinese will have stopped buying our debt and we will grow ever more emboldened to use our military to push them around.  But how will we get a foothold to launch an invasion - thank the Good Lord for North Korea.  

Within 20 years, America will be VASTLY different than it is today.  Can this scenario be stopped?  Yes, but I don't know if the new Republicans will be able to fight the FED - or if enough of them even understand that it needs to be fought.

* this is sarcasm, the Chinese aren't nasty, but hard-working people