While the circus of Democratic Presidential candidates continue to try to outdo themselves in who would tax (steal) from the rich the most, the saddest part in all of this is that they also continue to defend the very entity that helped make them rich.
Because in a new study published by Netherland's central bank in April of this year, researchers concluded that even going back to the 1920s, the end result of any and all money printing by the world's collective of central banks has been to enrich the top 1%.
Authored by Mehdi El Herradi and Aurélien Leroy, (Working Paper No. 632, De Nederlandsche Bank NV), the 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, ...estimating the dynamic responses of the top 1% income share to a monetary policy shock."
The authors "exploit the implications of the macroeconomic policy trilemma to identify exogenous variations in monetary conditions." Note: the macroeconomic policy trilemma "states that a country cannot simultaneously achieve free capital mobility, a fixed exchange rate and independent monetary policy".Per authors:
"The central idea that guided this paper’s argument is that the existing literature considers the distributional effects of monetary policy using data on inequality over a short period of time. However, inequalities tend to vary more in the medium-to-long run. We address this shortcoming by studying how changes in monetary policy stance over a century impacted the income distribution while controlling for the determinants of inequality."
They find that "loose monetary conditions strongly increase the top one percent’s income and vice versa. In fact, following an expansionary monetary policy shock, the share of national income held by the richest 1 percent increases by approximately 1 to 6 percentage points, according to estimates from the Panel VAR and Local Projections (LP). - Zerohedge
Sadly, most Americans are ignorant of the warnings given to them by our Founding Fathers, who in the case of Thomas Jefferson foreshadowed this over 250 years ago.
"I believe that banking institutions are more dangerous
to our liberties than standing armies," Jefferson wrote. "If
the American people ever allow private banks to control the issue of their
currency, first by inflation, then by deflation, the banks and corporations
that will grow up around(these banks) will deprive the people of all property
until their children wake up homeless on the continent their fathers
conquered."
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