From birth people are taught to trust. When government engages in activities such as deficit spending and quantitative easing who would guess the only possible outcome is that income and wealth is passed from the bottom to the top? There is no need to guess because there is actually no chance that such tactics will ever contribute to the common good.
So, what does that have to do with riots, why and when they will start? Americans are currently unaware of the degree to which they have been cheated. They are likely to find out and all hell will break loose. Suppose grandma has saved $100,000. In a free market setting, she would get a return of perhaps $5000 per year or 5 percent. Since the Fed provides banks with money at less than the rate of inflation, Grandma only gets about $750 per year on here savings or 0.75 percent. This is no different than stealing $4250 per year from the poor old lady at gun point.
For the most part old folks are fine with this because their hearts are filled with trust and they believe persons such as Janet Yellen are honest and competent. The opposite is true and people are in danger of finding out.
How often have you heard that inflation is in check? It is not, but in a free market setting consumer prices would be falling. Prices are supposed to fall when the productivity of labor increases, which it has by leaps and bounds over the past 40 years. The poor are ignorant so they don’t know they are being cheated. Aggressive monetary policy bolsters the profit margins of corporations at the expense of labor.
When people hit the streets and start burning and breaking things don’t be surprised. Most of them won’t even know why they are rioting when it starts. Currently, Americans are being bled white with respect to economic policy.
Economic stimulus has never been anything other than welfare for the rich. Hardly a soul knows how and why it works out that way but it is theft, plain and simple.
Janet Yellen, Ben Bernanke and all of the other smart people in charge have IQs in the stratosphere. Enhancing economic activity by removing pillars of free markets from the economic system is a contradiction to basic economic theory. They are completely aware of the damage they are doing. They are not good people.
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