The wealth of the 1% jumped on average by $9.95 million per household to $34.3 million.
The Fed’s doctrine of the “Wealth Effect” is designed to enrich the top 10%, particularly the top 1%, particularly the top 0.01%, and particularly the Billionaire Class. The more they have, the more they benefit. This is official Federal Reserve policy.
But during the pandemic, the Fed went all-out: It printed $4.5 trillion in 18 months and repressed short-term interest rates to near-zero, in order to inflate asset prices to the extreme. And it succeeded.
This was the greatest economic injustice committed in recent US history. Congress could shut it down but doesn’t want to even debate it. Members of Congress mostly belong to the top 10%, or hope to soon belong to it (on their Congressional salaries, of course, hahahaha), and that’s why this continues.My “Wealth Effect Monitor” for the Money-Printer Economy: Holy Moly, October Update | Wolf Street