Soros and Singer: Central Bankers Drive Income Inequality
The World Economic Forum’s meeting in Davos ended this past weekend, and much of the mainstream news focused on the hypocrisy of the world’s wealthiest individuals discussing the plight of the global economy. Research released by Oxfam in the middle of the conference shows that the richest 1% own 48% of the world’s wealth. Politicians love broad statistics like this, which they can use to justify more government “solutions” to this inequality.
However, it’s these same successful (and rich) businessmen who are sounding the alarms about the destructive policies of global central banks. These monetary policies are the single biggest contributor to income inequality, because they enrich the financial elite while destroying the economic fundamentals that allow the lower and middle classes to prosper. Renowned business magnate George Soros made the news at Davos when he stated the obvious:
This excessive reliance on monetary policy tends to enrich the owners of property, and at the same time will not relieve the downward pressure on wages.”
You can imagine how statements like that are received in a conference full of central bankers. Soros is not alone. Paul Singer, CEO of Elliot Management, has been even more vocal in his condemnation of central bank monetary policy, particularly that of the Federal Reserve. Singer agrees with Peter Schiff that the supposedly positive economic data coming out about the United States are all bogus and products of the Fed’s stimulus.
Inequality is a function of the government’s policies. There is no question that QE is adding to it.”
While these criticisms are getting media coverage on CNN and Fortune magazine, they’re often countered by parroting back the government propaganda. Fortune writes: “Still, criticism of the Fed this year seems oddly timed. U.S. economic growth has been among the strongest in the world these days.”
The reality is that no matter what the rich and powerful say, central bankers and politicians will maintain the policies that get them elected and enrich their friends. As Peter Schiff has warned again and again, the Fed won’t change its course until a truly drastic currency crisis hits America.
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