"You won't see this wealth transfer reflected in the Consumer Price Index. The CPI measures bread and gasoline, not Bitcoin and Berkshire Hathaway. Meanwhile, the [central banks'] money printing operation sends fresh liquidity straight to primary dealers, who park those dollars in stocks, bonds, and real estate. Asset owners get richer. Wage earners watch their purchasing power erode in real terms, even as official inflation statistics claim everything is fine.
"This creates a vicious feedback loop that sound-money advocates have warned about for decades. Cheap credit inflates asset bubbles, which [govts and central banks] then feels compelled to support with even more money printing. Each cycle makes the wealth gap wider. The Tesla shareholder benefits from artificially suppressed interest rates. The school teacher saving in a current account gets destroyed by financial repression. ...
"Expanding the money supply faster than real economic growth means that new money has to go somewhere. Since 2008, it has systematically flowed into assets that wealthy people own rather than goods that working people buy.
"Your [portfolio] might look healthy, but you're watching monetary debasement in real time. The stock market is booming because dollars are dramatically less scarce, not because companies are dramatically more productive.
"If you can, buy stocks, bitcoin, property, or gold. This makes you a beneficiary of this phenomenon, not a victim."~ Handre
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