Perception Isn't Always Reality! -

Decades of artificially low interest rates and money printing have altered people's perception of reality. We imagine that 5 percent interest rates and 7 percent mortgages are "high."
They aren't.
At least not from a historical standpoint. 
In this episode of the Midweek Memo podcast, host Mike Maharrey explains why we have an entire generation of people working in the financial sector who think extraordinarily loose monetary policy is the norm and why they are wrong. Along the way, he highlights the government's relentless devaluation of the dollar, using the recent demise of the penny as a vivid example. 
<div x-data=" item_id: undefined, view: null " x-html="view || 'Product-Random-Featured'" x-init="view = await (await fetch('/shortcodes/product/random/featured?category=all')).text()">!!–Product-Random-Featured-All–!!</div>
Mike opens the show by remembering one of the snowiest winters on record in Kentucky. 
<blockquote>
"The winter of 77-78 was the fourth snowiest on record in Lexington, Kentucky. I was 10. Thirty-two inches of snow fell between December and February, with over 42 inches for the year. For context, Lexington gets about 14.5 inches of snow in an average winter. We missed school virtually all of January. There was above-average snowfall the winter before that as well – about 24 inches. I thought this was normal. I spent most of the rest of my school life mad because it wouldn’t snow. "I have a point here. This shows how your own personal experience can skew your perception of reality. I think this phenomenon is rampant in the financial world. We have an entire generation of analysts, financial reporters, and investors who believe 0 percent interest rates are normal. They aren’t!"
</blockquote>
Mike provides an overview of the historical trajectory of monetary policy since the 2008 financial crisis, noting that we've had nearly two decades of easy money. 
<img src="https://www.moneymetals.com/uploads/content/fed-funds-rate-725.png" width="700" height="484" alt="" style="display: block; margin-left: auto; margin-right: auto;" />
<blockquote>
"The most notable aspect of the chart is the nearly 10 years of zero percent interest rates following the 2008 financial crisis. This is the real outlier. However, we have millions of people working in the financial sphere who have never experienced a 'normal' interest rate environment during their careers. They imagine that zero is closer to the norm than five-and-a-half percent."
</blockquote>
Mike explains that we see a similar phenomenon when it comes to mortgage rates. 
<blockquote>
"The interest rate on a 30-year fixed mortgage was running around 6.3 percent in mid-November. This is perceived as 'high.' It’s not. Six to seven percent mortgage rates used to be the lower end of the normal range. That was before the Fed started skewing rates downward with interest rate policy and QE."
</blockquote>
The reason mortgage rates seem high is that the Fed's inflationary policies have blown up home prices. 
Mike notes that this provides some insight as to why the central bank has embarked on a trajectory of monetary easing. 
<blockquote>
"In a sane world, the Fed would be holding rates higher and possibly even hiking. Instead, it is cutting into an inflationary environment. To some degree, it’s a matter of necessity. After decades of low rates and multiple rounds of QE, the economy is addicted to easy money. A debt-riddled bubble economy simply can’t function in a normal rate environment. It needs more of the easy money drug. The Fed had a choice: keep the air in the bubbles or deal with inflation. It picked the bubbles and surrendered to inflation. But I also think the expectation of loose monetary policy is something of a self-fulfilling prophecy. As long as people think low rates and money printing are the norm, you won’t find much resistance to this monetary malfeasance. And after decades of easy money, it seems normal. It's a classic case of perception shaping reality. 
"But perception is not reality. This easy money world we live in isn't normal. And imagining that it won't change the negative impacts."<o:p></o:p>
</blockquote>
Mike emphasizes this is why people need to save in real money  – gold and silver – and not depreciating dollars.
Speaking of the devaluation of money, Mike notes that the last pennies were recently struck at the Philly Mint. 
<blockquote>
"You know who killed the penny? The government. And it was tantamount to shooting the messenger."
</blockquote>
Trump ordered the end of penny production earlier this year due to the cost. So, what happened to the penny?
<blockquote>
"Well, it’s not worth anything anymore. You might still be able to give a penny for somebody’s thoughts, but that’s about it. You can’t even get a penny gumball these days. One cent has become virtually irrelevant in today’s financial system. The greenback has devalued so much that the value of 1/100th of a dollar is approaching zero. It’s worth about as much as the lint in your pocket. How did this happen? The government is destroying your money."
</blockquote>
Meanwhile, inflation has also driven up the cost of producing pennies. 
<blockquote>
"The bottom line is, every time you pick up a penny, it’s a reminder of Uncle Sam’s monetary malfeasance. Instead of actually solving the problem (i.e., end the borrowing, spending, and money printing), your drunk uncle just shot the messenger and sent the penny to its grave."
</blockquote>
<div x-data=" item_id: 1394, view: null " x-html="view || 'Product-1394'" x-init="view = await (await fetch('/shortcodes/product/single/1394')).text()">!!–Product-1394–!!</div>
Mike points out that the government has had to take steps to cover up monetary devaluation before. For instance, it removed silver from quarters, dimes, and half-dollars in 1965. 
<blockquote>
"Here’s the reality: When you disconnect money from anything of tangible value, it is going to quickly depreciate. It’s as certain as death and taxes. And that’s exactly what happened."
</blockquote>
Mike reiterates that this is why you need real money.
<blockquote>
"It will not be devalued by government action and can hold the value of your wealth over time."
</blockquote>
As a call to action to close the show, Mike recommends talking with a Money Metals precious metals specialist at 800-800-1865.
<h2>Articles Mentioned in the Show</h2>
<a href="https://www.moneymetals.com/news/2025/11/18/dramatic-year-for-silver-market-on-pace-for-fifth-straight-supply-shortfall-004488" rel="noreferrer">Dramatic Year for Silver: Market on Pace for Fifth Straight Supply Deficit</a>
<a href="https://www.moneymetals.com/news/2025/11/15/debt-black-hole-putting-increasing-stress-on-american-consumers-004483" rel="noreferrer">Debt Black Hole Putting Increasing Stress on American Consumers</a>

Read The Original Article