RE: RE: Money Supply - Trading Journal (10.09.20)
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RE: Money Supply - Trading Journal (10.09.20)

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The something that is broken is wealth inequality, there is an old saying (cant remember where I have read this) that goes something like "a rich man can only eat one loaf of bread per day just like a poor man"

Basically what is happening in the USA (also globally, some countries worse than others) is the wealth inequality is so high there is nothing left for the rich to buy, it is like they have won the game of monopoly. So they are just sitting on their money and not spending it, we have reached a point where there is no reason for the rich to invest their money anymore because there is not enough money at the bottom of the economic system for them to earn a return on.

Really the only thing for the wealthy to buy is housing/apartments and have everyone pay them rent, but that only works when the people at the bottom can afford to pay rent/mortgages. You can kind of see this happening in New York city, half the houses/apartments are empty because they have been bought up by the rich as investments but the majority of people cannot afford to rent them.

This is why inflation is not increasing, because the majority of people at the bottom/middle do not have enough disposable income to spend on goods, while the minority at the top have all the money and it is so much money it is literally impossible for them to spend it all...

And even if the government keeps printing new money and gives it to people in the middle/bottom of the economic system. That money eventually ends up going to the rich, because they own all the stocks that pay them dividends, they own all the stores that sell goods, they own all the housing/buildings that collect rent/mortgages, etc...

Without proper government rules, laws, regulations and taxation capitalism just ends up turning into a game of monopoly where there is a few winners and lots and lots of poor losers that cant afford to buy food...

@dksart: The something | Ecency