Liberty Nugget : A nugget a day keeps the state at bay !

Singing in the rain(if you assets that is)

This picture sums up beautifully our current economic situation and in the long run the very policies to help to poor will drown them.

For the (asset) rich they have assets be the property , shares or fine wines. When the monetary spigot turns on their assets rise in price. Just pull up a graph of QE and the S&P to see this affect – all the money printing does them no harm at all. There assets rise in value.

The middle classes will have some assets but not enough to shelter them from all price rises, money printing (ie inflation) will eventually seep into the weekly food shop , and they may even need to sell some of their assets to make ends meet.

Those at the bottom will suffer the most , higher price for everything , their wages are sticky and low , and very unlikely to move at the rate that prices are rising in the economy.

They will also have no/limited assets to cash in on. They may get lucky and have some of their debt inflated away , that assumes their wages will rise with inflation.

You also have to have spare money to pay off debt, if you are spending ever larger amounts on food (due to inflation) you are left with a very small to save or pay off debt all the while the debt racks up.



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