The American pathway... The Federal Reserve targets inflation at 2%. So my purchasing power will be down 10% in 5 years. No interest is paid on savings. So I cannot grow my assets via bank savings. The Fed announces QE3 will purchase about $80 billion a month of Mortgages and Treasury debt. Where did that free money come from. It was created ex nihilo. Spoken into existence. Why QE3? Because the new dollars chasing existing assets will increase the face value of stocks, land, stuff the top 30%, like me, own in quantity. And the Fed wants me to feel wealthy. How earnestly does Bernanke want me to feel wealthy? $80 billion a month is equivalent to the total IRS taxes paid each month by all people and corporations. Its effect? To decrease the purchasing power of the $ US dollar, thus increasing the strain on those without assets. It redistributes wealth from those holding dollars and receiving fixed annuities to speculators, aka holders of tangible assets. Think of it as the Fed pumping a money flow as big as all US taxes (ex payroll tax) to the top 50%.
I saved $3,000, for college back in the day. If I had put that in half dollar coins, pre-1965, I would have 3,000 ( actually 2,700, 90%) ounces of silver, now worth more than $86,000. Quite an impact from Fed policy and free money system. Only by having "assets" like land, metals, equities can you out run the financial system..