The Bank of Canada boasting they might make money on policies that exploit young people isn’t the win they think it is.

These people are so far disconnected from reality, it’s gross. https://twitter.com/paulvieira/status/1337147874069651458

I just realized a lot of people that follow me likely have no idea what quantitive ease is.

It's a huge issue. In fact, it's one of the big reasons millennials are worse off than previous generations.

Quick mini-thread.

3/ normally interest rates are lowered to stimulate the economy, but when they're almost at 0, they have nothing else to cut.

So instead, central banks engage in QE, which increases the money supply by purchasing assets with newly created reserves to give banks more liquidity.

4/ In plain english? They printed money so banks can give more cheap loans. Great, now people can borrow a lot of cheap money to buy stuff.

One problem: You need money to borrow money.

5/ Upper middle class people, like doctors and lawyers, have some money. So they take advantage.

They speculate on things like real estate with the government's cheap money.

The truly rich? Well, they have a lot of money. In fact, it dwarfs the whole middle class.

6/ So they don't buy a house or two. They finance industry that consolidates competition, runs mom and pop out of business, and essentially closes competing employment.

When the economy recovers, they have much more streams of revenue, because everyone else went bust.

7/ Wait, I missed what working class people do. Well, they don't have money, so they get nothing.

To recap: In QE, your government gives money to the super rich to consolidate industry. They give the middle class money to drive up your housing cost. And they give you nothing.