- 22 Settembre 2018
- by Blogger
The following news is none other than the inevitable consequence of fiat money expansionary policies. In fact, if price inflation has been temporarily tamed, in addition to the fact that it has largely remained confined to the financial sector in recent years, it has also been thanks to low-cost goods from China. It should also be remembered that the stock market boom hasn't made the majority of the population rich in spite of what some scoundrels traders impose as truth. In fact, as we read from the following report the wealth of the average family in the US has not gone anywhere despite the huge boom in equities. There is a severe problem with central banks’ fiat money: It affects income and wealth distribution, and it does so in a non-merit-based, anti-free market way. To understand this, we have to consider that if and when the quantity of money increases in an economy, the prices of different goods will be affected at different points in time and to a different degree. In other words: A rise in the quantity of money changes — and necessarily so — peoples' relative income and wealth position.