The more I learn about the financial system and how it works with government, the more I have become convinced that the whole thing is a scam, robbing the working class in a way that only benefits the very wealthy.
QE can be thought of as a tool to accelerate the wealth transfer from poor to rich. Every time we go through one of these cycles the whole thing speeds up.
Additionally, I think we should reconsider the idea of making it easy to acquire debt. An economy based on debt serves only to inflate assets that are easy to acquire debt for (i.e., houses) and prices out everyone who isn't in a position to acquire debt (which is a huge number of people, mostly young and poor people, including myself).
The debt thing to me seems like a "band aid" on keeping consumption going. If people have no meaningful money saved, then to keep consumption going cheap credit needs to be made available.
This is no true. It’s QE is funded by other rich people who buy bonds. If we do pay off the debt, again it will be rich people paying it off. The top 10% pay 70% of federal taxes.
Also, the megarich don’t lose much when the stock market collapses. Even if they lose 90%, of their wealth, they’ll live comfortably. Meanwhile, millions of working class people will lose their jobs because companies run out of credit to pay them.