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Think about this picture: September 18th, 2007, in mid afternoon, the Fed predictably cut the interest rates 50 basis points. Just in the matter of a few minutes the Dow Jones ran wild going over 300 points. Do you have any idea how many billions were created in the hands of a few people in those few hours? Wealth that was created within those few hours may have been the easiest money that is created in the society.

Contrast that with the situation of most salaried persons. Whatever the insignificant amount you made during those few hours will come to you only after paying both a regular tax and a social security tax to the government (who incidentally spends it religiously and in addition borrows to spend even more). But those billions of wealth that was created in the hands of those lucky few who are in the stock market would be allocated to them with no tax liability since they will be paying taxes only when those stocks they own are sold. Even then they pay taxes at favorable capital gain rates and, at any rate there is no social security tax deduction from such easy money. Social security taxes is specially a waste since the government really does not separate those and invests wisely for your old-age retirement benefit but mixes the collection with the rest of your taxes and spends it with very little accountability (at least that has been the trend in the last few decades).

In addition, this transfer of wealth, regardless of how you look at it is a zero sum game. There is a winner and a loser. Even though most money that is being created comes out of thin air, thanks to the fiat money system we practice, with the Federal Reserve Board in charge of such creation (making it to appear as such new wealth creation to be a win-win solution), still a huge supply of dollars put pressure on the value of currency.

Consequently on September 18, 2007 as the Dow Jones was creeping up at a ferocious speed creating immense wealth, and as the spokesman for the ownership society rallied in CNBC studios exchanging high-fives and laughter, the dollar crashed down precipitously against the major currencies. Oil prices climbed over $82.00 per barrel. That translates into most of the salaried persons paying high prices for gas with their depreciated dollars. So not only you did not make any money out of this deal, but lost. Also such low interest rates will lead the average person to continue to use his home as the ATM machine and borrow more for survival in the society where

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