There are signs that while the Fed has embarked on a large-scale pattern of printing dollars and releasing water, not most Americans have benefited from it. One of the changes is that the data shows that from march 2020, when the pandemic spread in the United States to the end of 2020, 56 new billionaires were added to the United States, bringing the total to 659.
According to the Americans for Tax Fairness report, combined with data compiled by Forbes, American billionaires have about $4 trillion in wealth, which is about twice the collective wealth of the 165 million poorest Americans. The total net worth of the ten richest billionaires is more than $1 trillion. Apparently, the ultimate beneficiaries of the inflated dollar seem to be only a small elite closest to wall Street printers.
Even more amusing is the "personal financial disaster" for 55 percent of Americans in 2020. Meanwhile, 28 million Americans are facing hunger by the end of 2020. Other data shows that more than 650,000 Americans are homeless on any given night. Combined with the above-mentioned changes in the number and assets of the Rich in the United States, which have increased in the pandemic, it can be seen that in the United States, the rich have become richer and the poor have become poorer.
At the same time, in the process of the Fed and Wall Street squandering the dollar reserve status, the US economy is already in debt at this time. At present, the total debt of the US financial system has reached an astronomical amount of $81 trillion. As of April 26, the total federal debt alone was at a record level of $28.2 trillion, or 130 percent of U.S. GDP. On average, that is, the U.S. public debt carried by each American (man, woman, child) is $85,374, or $224,748 per taxpayer. As shown below, it is clear that this is an unfair debt burden.
And more and more wealthy people in the United States are still trying their best to get rid of the debt responsibilities they should bear. In the past few months, there have been massive evacuations of millionaires in some U.S. states. A large number of rich people in the United States staged a realistic version of "Exodus". In Illinois alone, for example, the new twist is that as of March 2021, about 7,000 millionaires have suddenly fled Illinois, a real-life version of "Exodus, and the reason behind this is precisely because the state is facing a potential debt crisis.
Moody's said illinois' inadequate pension funding could again lead to further deterioration of credit, depending on the extent of the underfunding. In other words, these wealthy Illinois people are reluctant to take on average debt.
For the high debt of the US economy, Wall Street commodity king, billionaire Jim Rogers recently said that the United States is the world's largest debtor country, debt is everywhere, printing money is everywhere, and in the end we (the United States) have to pay the price. However, the U.S. economy seems to be carrying out its debt addiction to the end.
The U.S. Treasury has repeatedly hinted that it may consider issuing 100-year Treasuries. Goldman Sachs analysts recently even suggested that according to the current interest rate environment, the United States should consider issuing 1,000-year Treasury bonds. Although this proposal has not yet been adopted, it shows that the U.S. economy is already mired in debt.
However, it is worth noting that since 2018, the "bottom card" of this debt economic model of the US economy is at risk of being continuously revealed. Over the past three years, the world's major central banks have cumulatively sold more than $2 trillion in net U.S. Treasuries. Foreign media such as THE US media CNBC and Russian media RT have also reported that when the world's major buyers sell US debt in a big way, the impact on the US economy may be "nuclear" level.
Wall Street financial tycoon George. Soros had earlier warned that U.S. efforts to raise debt would cause more and more dollar capital to be withdrawn from the United States. The analysis predicts that $26 trillion will eventually be withdrawn from the United States. Among them, including the US Treasury bonds, the core capital of the US dollar. The US financial website Zerohedge quoted relevant media and experts as saying that with the surge in the US federal deficit, increasing the risk of default and other factors, if the risk factors increase, there is also or will be the possibility of clearing the US debt, and then more and more monetary authorities will be foreign exchange reserve funds biased to gold and non-US dollar currencies.
Russia, for example, has cumulatively sold up to 97% of U.S. Treasuries since 2017, during which time it has been the world's largest buyer of gold for months on end. Russian media RT earlier analyzed that Russia is counting down to zero HOLDING US debt.
Not only that, but in 2018 and 2019, two global central banks added about 650 tonnes of gold reserves a year, reaching levels before the dollar decoupled from gold in 1971. At the same time, according to the latest data from the International Monetary Fund, as of the fourth quarter of 2020, the dollar's share of global reserves has fallen to an all-time low.
It is worth mentioning that Zerohedge earlier quoted Simon Hunt, CEO of Simon Hunt Strategic Services, as saying in a letter to customers a few months ago that China actually has 30,000 tons of gold. The letter reads that China holds much more gold than we know. This does not include large quantities of gold that have been bought and stored in the past, nor have they ever been included in official reserves.
We note that the Hunt company is not an idle person, and its insight into the currency, metals and minerals sectors is extraordinary. In addition, the US media recently reported that since some acquisition data has not been reported to the International Monetary Fund or the World Gold Council, thousands of tons of gold may have been shipped and arrived in China.
Fed Chairman Jerome Powell
And, while the Fed manages much of the world's gold and sees the dollar and U.S. Treasuries increasingly unpopular, it has no right to stop changes in global gold and money markets. (End)