Central bank policy is not complicated

People make central bank policy sound intentionally confusing with their metaphors of punch bowls and patients and such. It’s very simple really:Central banks create currency at the press of a button, totally disconnected from physical production, and restrict access of this money to a select few. This constitutes a transfer of wealth from everyone else to that select few.  
They pretend that the so-called “liquidity” that they have “injected” into the system is spread in an even and fair way. In reality it goes to the largest banks through Wall Street to the wealthy class. They see artificial income gains while the middle and lower classes see nothing but rising prices. This will always be the case because all that has really occurred is redistribution of wealth from the middle and lower classes to the wealthy – particularly those connected most closely to the new money, which is the large connected players on wall street. 


About johnonstocks

I've been trading stocks since 2003, active on Motley Fool's discussion boards and using first Hidden Gems, then Global Gains. I no longer have the newsletters, but I keep up on the WSJ and read David Rosenberg everyday at gluskinsheff.com. Education: CFA level 2 candidate MBA-focus in Finance, Marshall, University of Southern California - expected Dec 2010. BS Mechanical Engineering, UC San Diego, June 2002
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