Quantitative Easing Has Hollowed Out the Middle Class.

In this report I cover the early market action from London on Thursday, May 31st, 2018. I look briefly at the precious metals, the stock market, the dollar and the bond markets around the world. I note that, even though, the world markets have quietened down the political situation in Italy is far from being stable.

I also look at an interesting article or essay by Professor Antal Fekete in which he suggests that the central banking policy of debt monetisation or quantitative easing is actually a destroyer of capital and also is extorts wealth from labor or workers. He points out that low and stable interest rates in a sound money system are beneficial to prosperity and stability but that in a system of irredeemable debt (fiat money) when the central banks manipulates interest rates down it actually hurts both capital and labor.

I think it is important to make people aware of this consequence of the fiat money system so that the central bankers are exposed and people realise that the damage done to their wealth and fruits of their labor is crippling.

My conclusion, like that of Professor Fekete, is that we need to go back to an honest or sound money system where institutions like central banks are not allowed to monetise government and corporate debt. I highly recommend one reads professor Fekete's article on the subject below.

Professor Fekete's article: http://professorfekete.com/articles/AEFCounterProdMonetaryPolFed.pdf

Professor Fekete's website: http://professorfekete.com/