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Why the filthy rich get richer ad infinitum
Well done Federal Reserve (and other central banks) to make the rich get richer
at the expense of the rest of us.
After seven years of zero interest rates, with the Fed expanding its balance sheet
to $5 trillion, the unemployment rate just looks low. In reality, it is kept
artificially low by the Bureau of Labor Statistics so that the long-term unemployed
are not counted in the official unemployment rate but are assumed to have left the
Massive overstimulation of the money supply and prolonged negative real interest
rates have not provided a sound economic recovery. We will soon get a "Greater Recession", or worse.
According to the Federal Reserve the economy has shown considerable strength, with a low inflation rate.
Well, rising consumer prices is the least problematic inflationary manifestation, as it could be easily
rectified by monetary tightening. Asset inflation and Bubbles are a much more dangerous inflationary
Today there’s a global financial speculative Bubble, made by central bankers responding to financial
and economic fragilities. This has caused stock prices and asset prices to soar, concentrating wealth
in the owners of capital. In addition, leverage is much more readily available at cheap rates to those
already wealthy, so a period of growth in assets and share prices concentrates wealth even further.