I'd hardly call Inflation robbing the masses, but QE meanwhile is robbing the masses.
Well, first let me say both are robbing the masses.
But, QE is not inflation at the same level of typical inflation, as the money is mostly just seeing the upper reaches of society. (e.g - Via QE, the banks are investing in bonds, the stock market, etc and most of society is not seeing that money.) I believe this can be verified with the velocity of money.
I still think QE causes some inflation, but not as much as I once thought (after reading about it).
Anyone jump in here as I'm going by what I've heard recently. And it's still a recipe for disaster.
If you increase the quantity of money, then all other things being equal, a unit of the money will be worth less: inflation.
But if you increase the supply of money and demand for the money increases, i.e. people want to hold more of it, a unit of the money may be worth more than before: deflation.
And if QE adds money to a money system where the amount of credit is collapsing the total money supply may be unchanged or even fall, so the tendency is still deflationary.
Even if a QE is not showing as inflation it still distorts the market. The QE benefits those who first get the money it represents, at the expense of those who already had savings: if it wasn't for the QE their spending power would have risen.
