Donald Trump Admits QE3
Only Helps the Already-Rich
Add Donald Trump to the short list of media-figures telling you the scary truth about the future economy.
EVG Research Team here, and from where we’re standing, The Donald and Bill Clinton deserve gold medals for telling you the straight truth.
The straight truth about an economy not on the edge of recovery, but one on the edge of collapse.
At EVG, we’ve been warning you about this since our inception two years ago.
And now we’re happy to have the Donald on our side…
Here Are The Donald’s
Shockingly Honest Statements
Donald Trump appeared on a CNBC show guest-hosted by Dallas Federal Reserve President, Richard Fisher.
Fisher is one of the few Fed President’s to oppose the latest round of money-printing, named QE3. He’s publicly stated it will lead to higher inflation without improving the economy. And he said as much on the TV show.
The Donald was in complete agreement. About QE3, he said:
“It’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.
“I 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.”
~ Donald Trump
He’s absolutely right.
The stock market has rallied and real estate may have turned a corner…
…but BECAUSE the Fed is printing money, and that’s artificial.
It’s an illusion, it’s not real.
And it benefits the rich, and those who invest like the rich, at the expense of the average guy. The Donald, being brutally honest like usual, said as much:
“You 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’ve loved inflation but I don’t like it for the country.
But as an individual, inflation has …, you know, it’s made me very rich.”
~ Donald Trump
Inflation: How the Rich REALLY Get Richer
Inflation, or money-printing, makes “the rich get richer” because the money goes to rich people first.
The Fed “prints money” 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 “mortgage-backed securities.”
What are mortgage backed securities? They’re cash-flow instruments the rich use to make money from the middle-class’ mortgages. Not exactly a bad thing, but it’s not an investment vehicle of the Average Joe.
So the Fed buys the mortgage backed securities… and the ultra-rich get the newly “printed” money in exchange.
And they need somewhere to put it…
… so it flows to stocks and real estate – boosting or “inflating” the price of these assets even higher.
It’s great for Donald Trump. But at the end of the day, long after The Donald has leveraged this new wealth to create even more wealth, inflation hits and the cost of living rises for everyone else.
And That’s Just One Reason
the Ultra-Rich Love Inflation
In Donald Trump’s case, he gets the extra benefit of inflation eating away at his company’s debt.
Because as more money is “printed” into the system, it becomes easier to get. And it makes multi-decade loans… like one Donald might get to build a large tower… easier to pay off over time.
While inflation may benefit Donald Trump, he said repeatedly he wished it wasn’t happening… because it’s bad for the economy and the country.
Unfortunately, there’s nothing we can do about that for now. As long as the Fed continues to print, inflation will continue to head our way.
The only thing we can do is join together, educate ourselves and invest like the rich – or Donald Trump – invests.
That’s what we’re doing here at The Elevation Group.
Your Partner in Prosperity
The EVG Research Team