Does Quantitative Easing Mainly Help the Rich?

Silly question but of course it does, the central banks of the world are privately owned banks and they benefit….not me or you. Courtesy of CNBC:

Last month, the Bank of England issued a report that must have made Fed chairman Ben Bernanke squirm.

It said that the Bank of England’s policies of quantitative easing – similar to the Fed’s – had benefited mainly the wealthy.

Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.

Many said the BOE’s easing added to social anger and unrest. Dhaval Joshi, of BCA Research wrote that “QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it.”

The BOE countered that the benefits of easing may have trickled down, and that “without the Bank’s asset purchases, most people in the U.K. would have been worse off.” Continue reading

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