The zero interest rate policy causes a creeping expropriation of the middle class and thus harms the common good. It benefits the wealthy, while ordinary earners are the ones who suffer.[continue reading]
License: Creative Commons License: Attribution CC BY
14.11.2022 | www.kla.tv/24134
The strategy of the European Central Bank (ECB) is to save highly indebted EU countries with its so-called zero interest rate policy. This means that anyone who has money in the bank no longer receives interest from it. The inflation rate which is the percentage that gives the loss of purchasing power due to price increases has risen by more than 5% in December 2021. In other words, people get 5% less for their savings than a year before. For the period of 2008-2018, interest income was balanced against interest expenditure. As a result, households suffered a net loss of 123 billion Euros. This creeping confiscatation primarily affects the middle class, as most of its assets are invested in life insurance policies and savings accounts. In contrast, however, despite the zero rate policy, German financial assets increased by 40% to 6.236 trillion Euros between 2011 and 2019. This means that this policy is apparently beneficial to the wealthy, while households that mainly represent the middle and lower classes are the ones who suffer. If the middle class is hijacked as a result of this zero rate policy, this will progressively lead to the destruction of large areas of the common good.
from gz. , mpe.