Leverage and subsidies. The money did not exist to begin with, hence the FED balance sheet and gov't debt.

The money is funneled into these assets by regulatory incentives 401k, HUD, federal student loans, etc. The seller's money goes toward that as well.

I forgot to mention that China sells us consumer goods at a very low price, keeping CPI down. With the dollars we give them for their goods they purchase US companies, bonds, and real estate. This pushes up prices of the assets they purchase. If the Chinese did not devalue their currency, americans would not be able to afford their products and we would see a rise in the CPI.

If the money supply was increased across the board this would likely be the case. However, the FED bank no longer operates in the way it was statutorily mandated originally. The FED purchases assets that inflate the stock market indirectly. The Federal subsidies and regulations combine with this to keep the money propping up the assets mentioned(gold only because of it being a historic hedge).