Chapter 076 Monetary Easing Policy

Justice Kishimoto had long been prescient, once the Korean government and central bank had introduced the monetary easing policy, by the time the people of Korea had a personal intuition, it would mean that the amount of money had all been issued in excess by an unknown amount.

The government and the central bank are naturally endowed with the power to issue legal tender. They just need to let the money printing machine run at full power and print just as much as they need according to different actual needs.

The upper classes will have various channels of receiving news in advance. There would have been a response before the government and the central bank made an official announcement through the media. Or, it’s just a negotiation between the two sides, tailored to the situation.

After all, South Korea is a country controlled by plutocrats. The Samsung Group alone accounts for nearly 20% of the country’s GDP.

The top four plutocrats account for 58% of the country’s GDP, and the top ten plutocrats account for more than 80% of the country’s GDP.

The middle class is passive, but lives on, with no problems at all. First of all, they all have a permanent formal job.

This main group of people are either civil servants or official members of large corporations. Even if the Korean government and the central bank introduced a monetary easing policy, it may not be harmful, but will more or less benefit them. The price of real estate under the name of an individual has risen significantly.

With the increase in the amount of money on the market, the currency is bound to depreciate, and price increases are inevitable. At the same time, it will also trigger a substantial increase in real estate, especially rent.

Since it is the middle class, it means that there must be a house. No less, there should be gold, stocks, all kinds of securities in the hand, will not be alone only cash.

The accompanying rise in wealth will offset the negative effects of inflation. Otherwise, the government or large companies will directly give them a raise, increase the living of temporary subsidies and so on.

The lower classes are in deep shit, real deep shit. The largest group of people will suffer from having less money in the bank somehow.

Of course, the less money here is the purchasing power. For example, in the past, 10,000 won could buy a watermelon, but now it takes 20,000 won to buy a watermelon of the same size as in the past.

The reason why it’s lower class, houses are generally not going to be available. Gold, stocks, and other securities are also not available. Even if they did, they would have very little.

Their main habit or the way to prepare for the storage of contingencies is to deposit cash in the bank or put it in a secret place inside the house that only they know. As a result, the money becomes scarce while the person is sitting at home.

In real life, they obviously feel that prices are getting higher and higher and it is getting more and more difficult to survive. This wage is still not rising. Even if it is hard to look forward to a wage increase, it has not risen above inflation.

Wages rose by 5%, the actual prices or, to put it another way, the CPI consumer price index rose by 10%. Scrimp and save, find ways to reduce spending, squeeze money out of life, that pain index also increased.

In the past, eating three meals became eating two meals, and in the past, eating two meals became eating one meal. Or else, just let three meals a day become one meal, after all, water, electricity and gas also cost money.

Kishimoto justice thought of here, not without in the heart of the feelings, why understand that people are always unscrupulous to flow toward the top? It is from this.

Or should be that Chinese saying is good, water flows to the lower place, people go to the higher place. Don’t think that when you retire and get a pension, you will be able to enjoy your twilight years in peace. In a capitalist society, that does not exist.

Masayoshi Kishimoto knows very well that the retirement system is a beautiful scam. It started in the feudal society of the developed capitalist countries in Europe and America, and it is suitable for the people who are the backbone of the society, such as the public officials.

According to the specific different social status and pre-retirement position, after retirement, able to receive a monthly pension of varying amounts. However, the money in the past, whether it was pounds, or francs, it was all metal currency.

That meant either gold or silver. These things are the government and the central bank can not easily issue things, must be through mining and other ways to obtain gold, silver, and then cast into the circulation of the currency, not like today’s government and the central bank has unlimited printing currency rights.

Therefore, the biggest advantage of metal currency is not easy to depreciate. Moreover, it is not easy to be stored and rotted like paper.

The amount of money you receive as a pension is currently fixed at a number to begin with. Under normal economic conditions, there is no problem in living.

However, normal economic conditions do not last forever. Financial crises occur on average once every ten years.

Here’s the problem. If the government directly reduces the amount of pensions, retirees will never be happy with it, and it is bound to cause dissatisfaction and protests. Therefore, the government will not be so stupid as to do so, and often just directly issue more money to carry out devaluation operations.

Retirees say that prices are too high and their pensions are not enough. The government then starts to play deaf and dumb, unable to understand what it is saying.

Otherwise, it is pulling the wool over your eyes, taking the data of how many years ago, intentionally ignoring the price level at that time to make a comparison with the current amount of money above, said, obviously the money to you more.

It’s not enough. Has it been spent frivolously? Or spent in other areas? For example, traveling abroad or something. It’s because of your people’s fault that you’re moving the wealth of your country towards foreign countries.

You can barely afford to eat, and you still have money to travel abroad? That’s bullshit. Otherwise, it’s all your poor people’s fault.

You don’t pay taxes and you still want to eat the welfare of the country, which is all eaten up by you assholes and vote maggots. You still have the nerve to make trouble ……

The best way to deal with the underclass is to raise wages and lower them secretly. Ostensibly giving you a wage increase, while in reality issuing more money and taking it back from you with interest.

There are many ways to do this, and you can also do a harvest from the stock market, funds, and so on. That is to say, the money that I give you for your retirement is the money that I harvest from your investments in the stock market and so on.

Week after week, your negativity is gone. You will only blame yourselves for not looking right, investing incorrectly, bad luck, bad fortune, rather than stepping into the trap that was set up long ago.

Whenever Justice Kishimoto saw this kind of operation behavior of ordinary people, he had an indescribable feeling. Even if you go directly to persuade them, you can’t. They would also blame you for holding him back from getting rich.

This kind of people’s mental state was all something he had observed from running the pachinko parlor in the first place. Therefore, in his opinion, it was obvious that it was a well-made trap, but there were still people who would go ahead and stick their necks in it voluntarily. In the end, they would die without even knowing how.