The College Tuition Bubble

Many wonder why college costs so much these days. Could it be the value an education adds? Could it be "Rising Inflation"? The answer to both of these questions is an emphatic NO. The real reason college tuition costs are up is because there has been an enormous amount of Inflation. No, not CPI inflation, but credit inflation courtesy of the government and the Federal Reserve Private Banking System. One of the first financial markets that this scheme showed itself in was the NASDAQ bubble. Then it crept into housing and that ended badly in 2006. Then it found its way into the stock market and commodities. We all know how those ended. Well, one market it is certainly present in is the education loan market. The government has decided that everybody should receive a college education, so it has extended massive amounts of credit to those in need. Ironically, it is this very act of lending that has bid up college tuition prices. This is very similar to the housing bubble and will end the same way. This lines up well with my forecast for a deflationary collapse. This will bring down education costs when people can no longer get credit to keep education costs artificially high. The same is true with the market for healthcare. But I'll save that discussion for another time. For now, please view this very informative interview with Robert Reich, Public Policy Professor at University of California Berkley.