{"id":243,"date":"2012-10-11T06:33:21","date_gmt":"2012-10-11T06:33:21","guid":{"rendered":"http:\/\/www.apisbull.com\/blog\/?p=243"},"modified":"2012-10-11T06:33:21","modified_gmt":"2012-10-11T06:33:21","slug":"qe3-only-helps-the-rich","status":"publish","type":"post","link":"https:\/\/www.apisbull.com\/blog\/?p=243","title":{"rendered":"QE3 Only Helps The Rich"},"content":{"rendered":"
From where we\u2019re standing, The Donald and Bill Clinton deserve gold medals for telling you the straight truth.<\/span><\/div>\n

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The straight truth about an economy not on the edge of recovery, but one on the edge of collapse.<\/span><\/div>\n

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We\u2019ve been warning you about this since our inception two years ago.<\/span><\/div>\n<\/div>\n

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And now we\u2019re happy to have the Donald on our side…<\/span><\/div>\n

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Here Are The Donald\u2019s\u00a0Shockingly Honest Statements<\/strong><\/div>\n<\/div>\n<\/div>\n

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Donald Trump appeared on a CNBC show guest-hosted by Dallas Federal Reserve President, Richard Fisher.<\/span><\/div>\n

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Fisher is one of the few Fed President\u2019s to oppose the latest round of money-printing, named QE3. \u00a0He\u2019s publicly stated it will lead to higher inflation without improving the economy. \u00a0And he said as much on the TV show.<\/span><\/div>\n

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Donald was in complete agreement. About QE3, he said:<\/span><\/div>\n

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\u201cIt’s artificial. We’re printing money and doing it incorrectly – and it looks good, and makes me look good in all of the stock picks I make […] but it’s not real, [Stocks and real estate are] going up because they’re printing money.\u00a0<\/span><\/em><\/div>\n

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\u201cI should be happy about it in theory, Richard. But I’m not happy because ultimately it will come home to roost and it’s going to be very, very unfortunate in the form of interest rates and really some very severe things happening later on with the economy.\u201d<\/span><\/em><\/div>\n

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Donald Trump<\/span><\/em><\/strong><\/div>\n

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He\u2019s absolutely right.<\/span><\/div>\n

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The stock market has rallied and real estate may\u00a0have turned a corner…\u00a0<\/span><\/div>\n

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…but BECAUSE the Fed is printing money, and that\u2019s artificial.\u00a0<\/span><\/div>\n

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It\u2019s an illusion, it\u2019s not real.<\/span><\/div>\n

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And it benefits the rich, and those who invest like the rich, at the expense of the average guy. \u00a0Donald, being brutally honest like usual, said as much:<\/span><\/div>\n

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\u201cYou know, as a real estate person, inflation is my friend. Inflation is a great, great friend to those of us at a certain level of real estate. It’s been great over the years. I\u2019ve loved inflation but I don’t like it for the country.\u00a0<\/span><\/em><\/div>\n

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But as an individual, inflation has …, you know,\u00a0it’s made me very rich.<\/strong>\u201d<\/span><\/em><\/div>\n
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~ Donald Trump<\/span><\/em><\/strong><\/div>\n

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Inflation: How the Rich REALLY Get Richer<\/strong><\/div>\n<\/div>\n

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Inflation, or money-printing, makes \u201cthe rich get richer\u201d because the money goes to rich people first.<\/span><\/div>\n

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The Fed \u201cprints money\u201d by purchasing large assets from big banks and the ultra-rich. Like with QE3, where the Fed plans to spend $40 billion per month on \u201cmortgage-backed securities.\u201d<\/span><\/div>\n

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What are mortgage backed securities? They\u2019re cash-flow instruments the rich use to make money from the middle-class\u2019 mortgages. \u00a0Not exactly a bad thing, but it\u2019s not an investment vehicle of the Average Joe.<\/span><\/div>\n

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So the Fed buys the mortgage backed securities… and the ultra-rich get the newly \u201cprinted\u201d money in exchange. \u00a0<\/span><\/div>\n

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And they need somewhere to put it…<\/span><\/div>\n

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… so it flows to stocks and real estate<\/span><\/strong>\u00a0– boosting or \u201cinflating\u201d the price of these assets even higher.<\/span><\/div>\n

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It\u2019s great for Donald Trump. But at the end of the day, long after Donald has leveraged this new wealth to create even more wealth, inflation hits and the cost of living rises for everyone else.\u00a0<\/span><\/div>\n

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And That\u2019s Just One Reason\u00a0the Ultra-Rich Love Inflation<\/strong><\/div>\n<\/div>\n<\/div>\n

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In Donald Trump\u2019s case, he gets the extra benefit of inflation eating away at his company\u2019s debt.<\/span><\/div>\n

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Because as more money is \u201cprinted\u201d into the system, it becomes easier to get. \u00a0And it makes multi-decade loans… like one Donald might get to build a large tower… easier to pay off over time.<\/span><\/div>\n

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While inflation may benefit Donald Trump, he said repeatedly he wished it wasn\u2019t happening… because it\u2019s bad for the economy and the country.<\/span><\/div>\n

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Unfortunately, there\u2019s nothing we can do about that for now. \u00a0As long as the Fed continues to print, inflation will continue to head our way.<\/span><\/div>\n

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The only thing we can do is join together, educate ourselves and invest like the rich – or Donald Trump – invests.<\/span><\/div>\n<\/div>\n