The Federal Reserve is destroying our purchasing power. The Fed robs the poor to sustain the rich. Monetary expansion is indeed akin to printing money Zimbabwe style.
CPI is used as a primary indicator of inflation, but it fails to reflect the fact that asset prices move in lock-step with money supply. The poor majority may see only minimal increase in the price of their groceries thanks to tech-driven productivity increases which would otherwise be making everyday items significantly cheaper, but the American Dream of owning their own home continually moves out of reach at a rapid pace. Monetary expansion works to widen the gap between the haves (Asset holders) and the have-nots.
Relative to M2 it looks like this "V Shaped Recovery" in both equities and housing is a Bear Market Rally in disguise.
TL/DR: Cash is trash, by design.
CPI is used as a primary indicator of inflation, but it fails to reflect the fact that asset prices move in lock-step with money supply. The poor majority may see only minimal increase in the price of their groceries thanks to tech-driven productivity increases which would otherwise be making everyday items significantly cheaper, but the American Dream of owning their own home continually moves out of reach at a rapid pace. Monetary expansion works to widen the gap between the haves (Asset holders) and the have-nots.
Relative to M2 it looks like this "V Shaped Recovery" in both equities and housing is a Bear Market Rally in disguise.
TL/DR: Cash is trash, by design.