QE 3

We are now 10 months into Quantitative Easing 3 as the fed has been pumping 85 billion per month into the economy since last September. This money is used to buy back junk mortgages from banks and to buy government bonds and both of these increase the money supply. When the Fed adds money to the system they do not fly over the country dropping dollars so that everyone has an equal opportunity to gather up some wealth but they instead give it to a select group, in this case the big banks. Economist will tell you that when the Feds print up money those who get it first, get the most and this flies in the face of the Presidents concern about the widening income gap between the rich and the middle class. This gap has widened at an increasing rate since Quantitative Easing 1 started in November of 2008. With QE 1 totaling 1.7 trillion and QE2 adding another 900 billion and QE3 so far up to 850 billion the result has been a 5% decline in average wages. But during this same time income for the rich has increased 19%. As predicted the first to get the money make out the best.