QE - one of the biggest bluff of the monetary policy

QE, the famous quantity easing, or better known as printing new money (USD, Yen, GBP and EURO) to achieve a higher inflation and restart of consumption, is today declining, but the practically effect was not achieved at all.

The massive and almost a decade long QE was practically the biggest transfer of wealth to the rich. It was run by US Federal Reserve, the Bank of England and still running, but soon ending by European Central Bank (should be stopped in December) and the Bank of Japan.

The QE has been a total failure, because the injected money into the economy was supposed to allow banks to lend again money to the consumer, to the productive sector for increasing investments , consumption and finally creating economic growth.

But, the financial institution which benefited from the QE ( like banks, pension funds and insurance companies) instead of investing this "cheap"money into productive industry, they started to invest in stock markets and real estate which increased the price of shares and houses. There was practically no effect of employment, no effect on the increase of consumption and only marginal effect in productive sectors.

The effect of QE for who was buying a house, was negative due to increase of house price and for the same house the employee has to work more hours and instead of increasing the consumption, which was the main purpose of the QE, the normal person has to save money for purchase of a house or for the rent, which due to the market situation has also increased.

On the other side the QE "cheap money", due to the bank restriction of lending money, has taken ways out of the US, Europe and Japan. The financial investors, instead of lending money, has invested this money in stocks and houses, a lot of time also abroad, especially in emerging markets in Asia and after this decade of QE bluff and the rise of interest rate in US and slowly also in Euro area, this financial investment will probably be pull back from Asia destabilizing the local currencies. And doing that, we will see new waves of economic migrants on the door, due to .........our "brilliant" economic policy of flooding the financial market with "cheap" or fresh printed money.

So after more than a decade of QE, the final effect is that the rich are now more rich and the poor are poorer, no boost of consumption and a lot of "cheap money"assets ready to be put on sell. (there are rumors that only Fed is holding 4 trillions USD of assets purchased during the QE period for selling in short period), which will generated new big problems.