Central banks are buying massive amounts of stock. Does that spell the end of capitalism? In capitalism, the factors of production are privately owned. As central banks continue to buy up the world’s supply of stocks, governments control a greater and greater supply of the factors of production. But,since what they own now is such a small percent of total stock outstanding, why does it matter?
What is bought on a daily basis is adding up rapidly. Add what central banks own to what is owned by a handful of super wealthy individuals, who control government policy and capitalism will die.
What happens during the next economic downturn? Central bank will go on parabolic buy programs.
Popular dogma, declares that central banks are working tirelessly for the good of the economies of various countries. That is not actually the case. Central banks by virtue of political systems, work tirelessly to further enrich the most politically powerful members of the human race.
Mainstream economics treats all money the same but that is false. There is money which is backed by work. That is the kind of money ordinary citizens use when buying equities. Central banks and favored citizens buy stock with unearned money. Unearned money is available in unlimited amounts.
Unearned money is created under the auspice of stimulating economies but its purpose is actually to change the behavior of others who only have earned money to work with.
Yes, central banks buying stock directly or through surrogates will destroy capitalism. Capitalism is in fact being destroyed while we watch.