In the following report from Bloomberg, Mohamed El-Erian, CEO of Pacific Investment Management Co. states the obvious that the policies of the most powerful institutions in the world, The Federal Reserve and the ECB (European Central Bank) along with just about every other Central Bank have served only to make the rich richer while impoverishing the 99% on whose behalf they are supposedly working. Is this all accidental or is there a diabolical plan to eliminate the Middle Class, leaving only a Ruling Elite and a Serf class? Whether one believes in conspiracies or not, actions speak louder than words, and the results of the actions of the Central Banks that run Monetary policy for the whole world have brought greater riches to the already rich and the bottom 99% are being subjected to Austerity, very brutal Austerity in some cases as in Greece. This trend has greatly accelerated as a result of a perfectly planned and executed Economic Crisis that has grown bigger and bigger since 2007. Five years into the crisis and all the actions of the Fed / ECB have only resulted in hastening the demise of the Middle Class and further impoverishing the already impoverished. Einstein defined insanity as doing the same thing over and over and expecting different results each time. So if the results of the actions taken by the 'Authorities' have widened the wealth gap between the rich and the poor, it would be logical to conclude that this gap will continue to widen, expecting any other result would be insane!
_________________________________________________________From ZeroHedge.com
The Federal Reserve and other central banks may have increased income inequality with policies that boosted prices of stocks and other assets without having a commensurate effect on the economy, said Mohamed El-Erian, chief executive officer of Pacific Investment Management Co.
In a lecture prepared for delivery at the Fed Bank of St. Louis today, El-Erian said central banks may be nearing the limits of their ability to spur growth and suggested that the “collateral damage” their policies are having on the economy and financial markets may soon outweigh the benefits.
Mohamed El-Erian, chief executive officer and co-chief investment officer of Pacific Investment Management Co. (PIMCO). Photographer: T.J. Kirkpatrick/Bloomberg
“The unusual activism of central banks may, at the margin, have worsened further wealth distribution,” said El-Erian, whose company is manager of the world’s largest bond fund. “To the extent that such policy activism succeeds in bolstering asset values, but not the real economy, the rich benefit disproportionately.”
President Barack Obama highlighted income inequality this week as he campaigned for higher taxes on top U.S. earners and criticized Republicans for opposing them. Tax fairness will be a central theme in the president’s re-election bid, Obama campaign manager Jim Messina told reporters on April 9.
While the Fed and other major central banks did forestall a global depression, they have had less success in promoting a full-fledged recovery, El-Erian said.
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