Thursday, October 8, 2020

That would be Krugman, Bernanke and the Keynesians


Billionaire Wealth Surges As Working-Poor Struggle

The "Riding the storm" study, published on Wednesday by UBS and PwC, found that between April and July of this year, global billionaire wealth soared to $10.2 trillion, up from $8 trillion at the beginning of April. This increase reflected a 27.5% surge in total billionaire wealth over the three months.

This has been the problem since 2008, the Federal reserve policy of taxing collateral in regulated banks while the wealthy have complete access to shadow banks and the market. 

The bulk of the inequality caused by central bank distortions supporting bad Keynesian spending. It is essentially a delayed tax on the middle class.  The delusionists claiming multipliers that are not there, then the middle class gets hit with the banking tax when government losses need to be covered.

This all then leads to a long, involved last minute election and tax battle.  This time we may not be able to get through the tax battle before we are forced to devalue, just to save the banking system.

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