By Bill Bonner – Bill Bonner’s Diary (USA) –
We’ve seen how the feds created fake money after ditching the Bretton Woods gold-backed money system in 1971.
And we’ve seen how this fake money perverted, distorted, and corrupted our economy, our government, and even our family lives.
We pause here to recall how it even dodged the Constitution.
“Money matters” are supposed to be decided by the people’s representatives in the House… and then discussed and approved by the Senate.
After all, it’s voters’ money.
But the Fed – without so much as a by-your-leave or a thank-you note – took it upon itself to decide the fate of more than $8 trillion.
That is a rough estimate of the amount not paid to savers over the last eight years as a result of the Fed’s ultra-low interest rate policy.
The total transfer is much greater… since stock, bond, real estate, and other asset prices all rose in response to the trillions of dollars of new credits the Fed was putting into the system.
This enriched their owners… and made those who didn’t own them relatively poorer.