By Steve Sjuggerud in DailyWealth:
Sure, the man on the street feels good when he sees stock prices are up, gold is up, oil is up, etc. It feels like things are getting better. But it's not the truth...
The truth is the value of the dollar is going down fast. People want to believe differently. They want to believe the creation of money at a record pace by our government is creating wealth. But you don't create wealth on a printing press.
The government's simple goal was to reignite the U.S. real estate market. If you cut rates to zero and make money available, home prices can't fall any more - or so the government thought. The government didn't realize the low rates and money "printing" would lead to higher prices in everything BUT real estate.
A few years ago (summer of 2005), you would have needed 550 ounces of gold to buy an average house. Today, you need more like 150.
Read full article (with chart)...
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