So what has happened lately in finance? Where is all the money going?
Federal Banks all over the world have printed money in true Keynesian style to counteract a falling economy.
In Europe, the European Central Bank, lent banks half a trillion for a mere 1% interest. It is basically the same blues that has been sung for the last couple of years and it is still going strong. I guess it ain’t over until the fat lady sings.
So where is this money ending up and why does not price indexes for goods and services increase?
Well, because a few people in the financial sector is taking all this money and are making themselves very rich. Think of it, you pay 1% interest, and the inflation is around 2-3%. So by just avoiding losing money you will make money with this ingenious system created by politicians and bankers.
If the market would have set the interest instead of politicians, would it be as low as 1%? Is all risk really calculated in that 1%? Now that is a ridiculous thought!