The Mirage of the Value of Money

Valuable 5 minute listen from Charlie Billelo about the Mirage of wealth the last 2 years. 



Bilello quote,

"Home values are up, stock portfolios are up, wages are up but it is a mirage because it was all a function of a 40% increase in the money supply. If adjusted for inflation then real wages are actually negative.

People are making more money in nominal terms, but the things being bought cost more.

You can't print your way to prosperity. You have to have innovation, real economic growth over the long term to improve people's well being. Increasing the money supply by 40%, borrowing $6 trillion, and sending it out to people feels good in the short term, but it is a mirage because eventually inflation steeps into the system."