Monetary Policy Only Benefiting Top 1%..?

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Ever since the 2009 financial crisis what most people fail to still understand is that QE was rolled out as a way to “help”, by your boy Bernanke who was head of FED at that point.

QE= Quantitative easing aka printing money. See they use the big word to scare you and make you feel dumb, its all indirectly saying “leave the monetary policy to the smart people”. QE has NOT stopped since 2009 actually, 10 years later its still happening, for example,

Maybe if this is all new to you, you’re sitting there saying something like “ya ok money printing is stupid but I don’t understand money and well maybe they are like giving that out to everyone” and that would be 200% wrong. First off money policy isn’t that hard to figure out, don’t need an economics degree from Harvard to figure it out, secondly as many of us have been saying, it would appear that money printing literally only benefits the top 1% of the population.

So no matter what happens in the economy, you see the top 1% have insulated themselves to never be affected. The perfect portfolio all the time, not because they have mastered markets, they have won the game of conning us to allow this, and they have done it by holding the carrot just far enough out in front of each one of us.

Now I know reading this isn’t fun, I mean what are you supposed to feel…? Happy? NO most people will be triggered from reading the above and it makes total sense. Lets talk facts, where did I just get this “new data”.

Turns out the DNB literally just published this in April 2019 so its about as fresh as you’re gonna get my friends.

The abstract and I quote…

“This paper examines the distributional implications of monetary policy from a long-run perspective with data spanning a century of modern economic history in 12 advanced economies between 1920 and 2015. We employ two complementary empirical methodologies for estimating the dynamic responses of the top 1% income share to a monetary policy shock: vector auto-regressions and local projections. We notably exploit the implications of the macroeconomic policy trilemma to identify exogenous variations in monetary conditions. c6 “[1]

My favorite lines…

The obtained results indicate that expansionary monetary policy strongly increases the share of national income held by the top one percent. Our findings also suggest that this effect is arguably driven by higher asset prices, and holds irrespective of the state of the economy. [1]

Trust me when I say this paper is worth the read, yes its only going up to 2015, if we were to go up to 2018 the data would only get more obvious.

“The last decades have been marked by a substantial rise in income and wealth inequality across the developed world. Low-income households in advanced economies have seen their wages stagnating, while wealth has never been so concentrated since the dawn of the 20th century. Such patterns have prompted a global narrative on inequality, which has spilled into policymaking circles, especially since uneven income and wealth distribution appear to support excessive household indebtedness “[1]

This is just the introduction, like I said you should really give it a read, 40 pages.

This part I want to highlight here…

unconventional instruments that central banks implemented following the financial crisis [1]

Bernanke, Yellan and Powell have all literally admitted that they would participate in helicopter cash drops if they had to, in order to keep the system alive. Its when I read things like this I think about the other side of this whole thing and wonder what if these people are a lot dumber than we all give them credit for, maybe their handlers, the Rothchilds and Rockefellers sitting at the top playing monopoly don’t have it all figured out and the whole thing may collapse.

If it does, are you prepared? Not from a gun, food, underground bunker standpoint but from a portfolio standpoint? Having enough of your basis covered for any type of market reaction! Look I am not your guy for gun and end of the world talk, probably plenty of other people out there for that, I am the guy for to help talk some logic into a well rounded portfolio that can make it through a dual-currency bail-in, a bailout, change of GRC etc. If you go spending all your money on guns, won’t have any left to eat.

I tend to think this next one won’t be the big boy so many are crying for, and would much rather focus on well rounded solutions than play the ego game of trying to be right. This to me is similar to trying to catch the bottom on a market chart, which I have seen so few actually do its like spotting a dinosaur in NYC. So while 99% of these guys talking about the problem all day, lets talk solution.

Sources:
[1] https://www.dnb.nl/en/binaries/Working%20paper%20No.%20632_tcm47-383633.pdf

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