“Price is what you pay. Value is what you get.”
~ Warren Buffett
Written by Bryan Lutz, Editor at Dollarcollapse.com:
They didn’t do it by trading stocks, flipping houses, or buying the latest alt-coin.
It’s just what happens as a result of the system.
Last year, America’s 19 wealthiest households got $1 Trillion richer, and more billionaires were created in the United States than ever before.
All they had to do was virtually nothing.
They simply own assets.
Real estate, land, stocks in their own companies…
Then, because the Central Banking system is inherently inflationary, all of the assets held in that currency grow in price.
Maybe not value, but price.
It’s the numbers that grow.
The Wall Street Journal reports:
$1 Trillion of Wealth Was Created for the 19 Richest U.S. Households Last Year
“The wealthiest have gotten richer, and control a record share of America’s wealth.
New data suggest $1 trillion of wealth was created for the 19 richest American households alone in 2024.
That is more than the value of Switzerland’s entire economy.
It took four decades for the top 0.00001% of Americans’ share of total U.S. household wealth to grow from 0.1% in 1982—when 11 households made up that rarefied group—to 1.2% in 2023, according to an analysis by Gabriel Zucman, an economist at the University of California, Berkeley and the Paris School of Economics.
In one year, by the end of 2024, the share of total U.S. household wealth for the modern 0.00001%—those 19 households—jumped to 1.8%, or about $2.6 trillion.
That is the biggest one-year increase on record, according to Zucman.”
Last year, more billionaires were created in the US than ever before – a 45% increase since 2021.
They held assets in US dollars.
Here’s some easy maths…
Let’s say they held a home worth $10,000.
And 100% more dollars were created in this year.
Well, some of those go into various government projects, repayment schemes, and programs, other money goes to the banks.
The banks then lend out that money to businesses, for mortgages, and car loans for the average joe.
But in the bigger picture, the supply of money has increased.
So assets like stocks, real estate, and even gold get re-priced according to the supply of money floating around in the economy.
That $10,000 home may now be worth $15,000, and maybe $20,000 or more in a few years as the new money moves through the economy.
Now, if you look back at all these new billionaires and ask yourself why they go so rich.
It is most likely because of new capital entering the economy.
It is the same reason why these tech billionaires who doubled their wealth during the pandemic.
When you print 60% of all dollars ever in history it increases the wealth of those who already own assets held in those dollars.
Just how much more rich they’ll get is yet to be seen.
That is, until the dollar amount gets so high that it’s hard to tell what something is worth at all.
Until the currency changes, then assets are revalued.
Revalued in gold, or some other new reserve currency.
So do what they do.
Own the assets that will soon be revalued in whatever currency comes after the US dollar.
