Quantitative Easing is a form of tax.

[Blobbenstein]

If there is a trillion pound of assets in a country, and the state produce another trillion pounds through quantitative easing, no more assets have been produced, no more houses built, or oil found, so as there is now 2trillion pounds in that country, the original trillion pounds halves in value. People, in that country, with any assets have effectively been taxed 50% on those assets.

I wonder if some sort of equilibrium will be reached, where by the rich, and rich countries, gradually buy up all the assets, unpaid mortgages...QE will tax their wealth, at the same rate as the poor, but it won't affect them as much, and then the poor will have to work longer hours just to rent from the rich. Perhaps this has happened already.

 

[Clueless Git]

I wonder if some sort of equilibrium will be reached, where by the rich, and rich countries, gradually buy up all the assets, unpaid mortgages...QE will tax their wealth, at the same rate as the poor, but it won't affect them as much, and then the poor will have to work longer hours just to rent from the rich. Perhaps this has happened already

That would explain how the wealth gap constantly widens?

 

[marcela olega]

Nowadays China is buying up ports (Long Beach, Pireus, Greece) and land (Colombia, Peru, Bolivia, Africa), so gap is not widening but clashing with existing powers

 

[Freesia]

I agree with you, Blobbenstein.

Here in New Zealand we have a sales tax called GST. We used to have it at 12.5% on any sales of goods. But after the recession happened, our crappy government increased it to 15%, which basically hits anyone who has to buy anything, so it is an extra cost for poor people. Rich people are less effected by sales taxes as they have the income to absorb price rises in goods.

 

[marcela olega]

in Europe salestax is between 19 - 21%. This money goes to the more weathy to the less wealthy is the assumption..