A new Oxfam International study confirms my Great Fleecing article from Sunday’s New York Post.
The result of the greatest transfer of the wealth the world has ever seen, facilitated by the Federal Reserve and its Quantitative Easing programs under President Obama, shows the richest 1% now have more wealth than the rest of the world combined.
The study released this week to coincide with the World Economic Forum in Davos, Switzerland, where many of the 1% congregate, also states that just 62 individuals held the same amount of wealth as 3.6 billion people, about half the world’s population.
“Power and privilege are being used to rig the system to increase the gap between the richest and the rest to levels we have not seen before. Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate,” said Raymond C. Offenheiser, president of Oxfam America, in a statement.
Here are some dramatic milestones reached since Fed chief Ben Bernanke began his wealth transfer program in December 2008:
- In 2015, just 62 individuals had the same wealth as 3.6 billion people – the bottom half of humanity. This figure is down from 388 individuals as recently as 2010.
- The wealth of the richest 62 people has risen by 44% in the five years since 2010 – that’s an increase of more than half a trillion dollars, to $1.76 trillion.
- Meanwhile, the wealth of the bottom half fell by just over a trillion dollars in the same period – a drop of 41%.
So as I said in the article, “these actions — to the greatest extent — are the reasons the American middle class has been decimated and no longer makes up the majority of the US population.”
And all this wealth transfer was made possible by the Obama Administration, not a Republican White House.
The president’s economic advisers working through the Federal Reserve under Bernanke and then Janet Yellen bailed out the banks with more than $4.5 trillion in cash, but left out any wage growth or access to capital that may have lifted the struggling middle class and lower economic classes to reach for the American Dream.
As a matter of fact, the White House actually made matters worse for the middle class, as it gave Wall Street an out on the toxic mortgages it wrote, while swiping from US homeowners almost half the value in their biggest investment — their homes.
When the Wall Street banks did a mortgage modification under Obama’s Home Affordable Refinance Program (HARP) program, the principle was not cut to reflect current value, the rate was simply tweaked down slightly. And the banks collected big fees from the government to get themselves off the hook.
So the 62 richest people in the world, Warren Buffett for example, made huge profits off of investing in Goldman Sachs and Wells Fargo beginning in 2009.
I could go down the list and a good majority profited handsomely from this Wall Street bailout, but quite frankly it’s too sickening.
So get your children out there working, because they have to pay off this debt. This way by next year only 40 of the richest people in the world have the same amount of cash as you and I.