Politicians and federal reserve members pat themselves on the back for flooding the economy with money without creating inflation. They seem to be turning a willful blind eye to one of the most important expenses for average individuals. Housing. According to US Census Figures, the median home in the United States has risen to almost $200,000 by 2018. That is up from about $120,000 in 2000. According to official inflation data, a median house should be closer to $175,000. That $25,000 is a large difference, because even with today's low interest rates, it means that the average family will be paying $44,000 extra on a 30 year mortgage.
Who gets almost 1/2 of that $44,000 extra? The banks that are pumping extra money into the economy. Do you think that maybe there is a conflict of interests here?
The government makes claims of low inflation because people are paying slightly less for electronic components and other consumer items. Although a person can go without the latest cell phone, just about everybody needs a roof over their head. So when a politician is telling you that they have pumped trillions of phony dollars into the economy with no inflation, look around your neighborhood for what prices homes have been selling. You will find the inflation that they claim is lost.
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