The 0% interest rates of the past 5 years have made the wealthiest people in America and the world much wealthier. At least in (fiat) dollar terms.
The middle class. The everyday savers. The people struggling to put kids through college. The old ladies who used to live off of the interest accrued on hard won CDs. Those people have seen their relatively modest wealth diminish.
Then there are folks with no wealth at all, and those mired in debt servitude. These people, the vast majority of Americans, have seen quality of life diminish precipitously over the last half decade. Though inflation we are told by the government remains in check, one does not see this at the grocery store, or in health insurance premiums, or college tuition, or rents. These costs have crept solidly northward since 2009.
This is a direct reflection of the unsound monetary policies birthed at the Federal Reserve. In an effort to buoy the world investment banking system, the Fed engaged in the reckless experiment we have come to know as Quantitative Easing. It bailed out Wall Street. Main Street languishes.
A century ago William Jennings Bryan railed against an America crucified on a “cross of gold.” But with the gold standard (which at least encouraged something close to sound, responsible money) long gone it looks now that everyday America will instead be crushed by a mountain of government issued paper.
(From Real Clear Politics)
QE was supposed to make credit available to “Main Street” businesses crunched by the recession. That didn’t happen, said Andrew Huszar, point man for the Fed’s bond purchases.
“My program wasn’t helping to make credit any more accessible for the average American,” Mr. Huszar wrote in the Wall Street Journal Nov. 11. “QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.”