In late 2008, Federal Reserve Chairman Ben Bernanke introduced a controversial new term to the world: quantitative easing (QE).

In essence, the Fed would conjure dollars from thin air and then use those dollars to buy Treasuries and mortgage-backed securities in the open market — both to support their prices and to provide liquidity to the credit markets.

Economists still debate the merits of this unconventional tactic, but in the public narrative, “It worked.”

The economy recovered, and stocks would advance into a record-setting 11-year bull market.

Today, history is repeating itself.

What the Federal Reserve Is Doing

The Fed and other major central banks around the world are implementing very large and aggressive QE programs in order to maximize employment and rescue (or not) the post-Covid-19 global economy.

That’s pretty far afield from the Federal Reserve’s “official” job – controlling inflation and managing banks – but the central bank’s power has been creeping steadily upward since practically Day 1.

If the presumptive Democratic presidential candidate gets his way, the Fed’s duties might expand even further.

During a July 28 speech in Wilmington, former Vice President Joe Biden demanded that the Federal Reserve play a larger role in reducing the huge and growing wealth gap between America’s very rich … and everyone else.

Let’s take a closer look at Biden’s plan, its chance at success, and what I believe is a much better solution to this national crisis.

He Has a Point

Biden proposed that the Federal Reserve “aggressively target persistent racial gaps in job, wages, and wealth.”

“It is about justice,” Biden said last Tuesday. “For generations, Americans who are black, brown, Native American, immigrant, haven’t always been fully included in our democracy or our economy.”

Now, before you dismiss Biden’s proposal as nothing but political puffery (with pork for his voters attached), he does pinpoint an actual issue that requires attention.

As we’ve been talking about for months here, the wealth gap has exploded.

In 1980, the richest 1% of Americans owned about 30% of all household wealth in the country. The bottom 90% owned about 24% of all household wealth. But by 2012, the share of all household financial wealth owned by the top 1% had skyrocketed to more than 60% … and the share owned by the bottom 90% had plummeted below 10%.

Moreover, the wealth gap does indeed get even wider when you look at it from a racial angle. According to a Brookings study, the net worth of a typical white family in 2016 ($171,000) was nearly 10 times greater than that of a black family ($17,150).

So clearly, we’ve got a big problem on our hands.

But I doubt the Fed is where we should be looking for help.

You Have the Power

Politicians don’t have any magic solutions either, no matter what they promise.

We don’t need socialism in America. We can’t depend on universal basic income (UBI), lower taxes, or higher taxes … or some complex new trade deal. What we need instead is for more people to have a better understanding of the radical change that is taking place in our country and in our economy RIGHT NOW, so fewer folks are left behind.

Believe it or not, you as an investor have the ability to choose which side of the wealth gap you’ll be on.

The fuel behind the wealth gap fire is the unstoppable force of technological change.

In a paper by Oxford academics Carl Benedikt Frey and Michael Osborne, they estimated that 47% of American jobs are at high risk of automation by the mid-2030s.

According to another Oxford study, up to 20 million manufacturing jobs worldwide will be lost to robots by 2030.

Now, I’m not saying the sky is falling here. Americans will survive these existential threats, but to me, survival isn’t good enough.

We want to thrive.

That’s why I recently dragged a film crew along with me to produce a special presentation so I could show you exactly how tech’s exponential growth is widening the wealth gap.

In it, I share my next potential 1,000% winner. More than that, I show investors how they can set themselves up for generational wealth.

Take a few minutes to check it out, here.

Regards,

Eric Fry

P.S. Something remarkable happened to me recently while I was visiting America’s richest ZIP code. (It’s located far from Manhattan, Palm Beach, and Beverly Hills.) First, someone smashed our car windows – and stole thousands of dollars’ worth of video equipment.

But the good news is that, while there, I found what I believe could be my next 1,000% winner. (I’ve already found 40-plus 1,000% or higher stock market winners.) And today I’m giving away the name and ticker symbol of my next potential 1,000% winner for free, here.

Eric Fry is an award-winning stock picker with numerous “10-bagger” calls — in good markets AND bad. How? By finding potent global megatrends… before they take off. And when it comes to bear markets, you’ll want to have his “blueprint” in hand before stocks go south. Eric does not own the aforementioned securities.