The rich get richer, the poor get sanctioned and The Covid gets lost in the news cycle…
And so it came to pass in the Year of Our Lord, 2008, the Fed panicked. In its hysteria, it bestowed on the rich such gifts as the world had never seen. The US stock market rose 5 times higher. Or, as Tom shows below, people with capital assets added about $84 trillion to their wealth since 2007.
Many times over the past 14 years have we bemoaned the unfairness of it. The Fed had no wealth to give. Its generosity towards those in the wealthiest zip codes had to be exercised at the expense of others – namely, those in the others.
This was accomplished via what is known as the “inflation tax.” The Fed and other central banks ‘printed’ some $25 trillion in new money, which was funneled into the financial markets by buying bonds (owned mostly by the rich)… and then used to buy stocks and other financial assets (also owned mostly by the rich).
The rich got richer as their assets increased in value.
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