Handre@Handre
The moment the Federal Reserve creates new money, a silent transfer of wealth begins from your savings account to the politically connected elite.
Richard Cantillon discovered this mechanism in 1755: new money doesn't spread evenly through the economy like ink in water. It flows first to those closest to the money printer. Today, that means primary dealers like Goldman Sachs and JPMorgan receive freshly created dollars at yesterday's prices. They buy assets, extend credit, and make investments while you're still paying pre-inflation prices for groceries and gas. By the time new money reaches your paycheck, prices have already adjusted upward.
The numbers tell the story. When the Fed injected $4 trillion after 2008, Manhattan real estate soared 60% while median wages rose 11%. The same pattern repeated during COVID: $6 trillion in money creation sent the S&P 500 up 100% from March 2020 lows while regular Americans faced 9% inflation eating their paychecks. Wall Street got richer buying discounted assets. Main Street got poorer buying expensive everything else.
The monetary system is designed to benefit banks first. Banks receive new money first through quantitative easing and lending facilities. They purchase bonds, stocks, and real estate before prices rise. Meanwhile, teachers, mechanics, and small business owners watch their purchasing power evaporate as asset prices inflate beyond their reach. The politically connected literally steal wealth from savers and wage earners through the money printer.
Every dollar the Fed creates represents a tax you never voted for, collected by people you never elected, and distributed to institutions that never earned it.
