US Monetary Base Explosion: Savers are Losers

US Monetary Base Explosion: Savers are Losers Now

MoneyFraction.com Says,

One of my biggest concerns is what this policy would do to the “savers” in our economy who, during their lives, have not overconsumed and thoughtfully have put away money for their retirement. Their capital accumulation is the fuel for our economy, but under this policy, the Fed forcefully drives the real rates of return for the savers (many who are retired or approaching retirement) to zero or negative. Many of the retirees in my district are facing a new financial crisis as the income on their savings has fallen as much as 70 percent over the past few years.

Since 2008, US Government has doubled its monetary base (Money Supply) by printing literally US $ 1.2 Trillion out of thin air (Also known as Quantitative Easing).

This newly printed money has diluted the purchasing power of the existing money in the economy.

And according to the US Federal Government, it can increase its money supply up to 400-700% (4-7 Times) from its 2008 level.

Let me tell you that in 2008, the US Monetary base was just US $ 800 Billion and its 4-5 times means around $ 3-5 Trillion…!!!!

Robert Kiyosaki said on Yahoo Finance that,

“Savers are Losers” now because the ruled of money have been changed. The people in the United States who live below their means and saved lots of money proved fool. Because they have saved something (Money), the value of which is going down year after year (Because of the inflation and bad monetary policies).

So the Modern Financial Advise is, “Save & Invest Your Money”.

Don’t keep your money with you but rather buy assets out of your money. This is because assets are more valuable than money. And this is the reason why people who own their own business and investments are more financially sound and richer than those who just own a job.

It’s time to get financially educated.