Inequality Crisis; 62 people own as much as 3.6 billion poor people

Inequality Crisis; 62 people own as much as 3.6 billion poor people

 

Things continue to go from bad to worse;  if you look at the dates, you will notice that conditions started deteriorating rapidly after 2010.  2009 was when the world experienced one of the worst financial catastrophes of all time. How did the U.S government decide to deal with this meltdown that was perpetrated by the banks? They bailed the thieves that caused the problem by giving them $700 billion and left the average person to rot and die.   That was not the end, they then came out with several rounds of QE and even this was not so bad. The real kicker was the fact that they artificially kept rates low for such a long period that it created a situation whereby speculators were rewarded and the savers were punished. It no longer paid to save and the corporate world went on a spending spree; they borrowed tonnes of cash and used this to buy back their shares and created the illusion that earnings were rising.

What does this have to with world inequality? well, this led to stagflation, rising prices of basic necessities but declining wages.  Worse yet, this hot money was only available to the big corporations so the small chap was effectively cut out from this party.  This is why the numbers of the super-rich declined and the poor surged. In 2010, 388 individuals owned as much wealth as the poorest half of the world. Today 62 individuals have the same amount of wealth that 3.6 billion people on this planet have.  This is insane and sadly, it is not going to end.  Central bankers of the world  have no embraced the era of negative rates, so the system is going to be flooded with even more money.  Hence, even more, individuals will end up in the doghouse.   The excerpt from a recent article we featured illustrates how this economic recovery is nothing but one massive illusion

If the recovery was real, interest rates would not be held low for so long and the Fed would need to support the stock market. After it stopped the corporate world stepped in via the illegal usage of Stock buybacks. Now instead of trying to improve the bottom line, they focus on simply buying back more shares and in doing so artificially boosting the EPS. It’s a perfect scam, no work and big pay; and as interest rates are low, the incentive to borrow large sums of money to do these dirty deeds is larger than ever.  Hence expect stock buybacks to surge to levels that will appear insane one day.  However, here is one chart that clearly illustrates that the economic recovery is nothing but a bad joke. Fed Data illustrates Economic recovery is a bad Joke

 

Other Articles of Interest:

Negative rates will fuel the biggest Bull Market rally in History (25 May)

Millennials being squeezed out of Housing Market (20 May)

Problem is Fractional Reserve Banking-we don’t need Gold standard (15 May)

BBC Global 30 Index Signals Dow industrial Index will trend higher (11 May)

Stock Market Bull not ready to buckle (4 May)

Fear mongers are parasites that profit from your fear (2 May