The Cantillon effect: "the first ones to receive the newly created money see their incomes rise, whereas the last ones to receive the newly created money see their purchasing power decline as consumer price inflation comes about." https://mises.org/library/how-central-banking-increased-inequality … https://en.wikipedia.org/wiki/Richard_Cantillon …
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The discount window is the original ICO presale.
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(Nick, Let me know if these replies are unwanted...don't always mean to be devil's advocate) But figured i'd post a counterpoint Would be curious of other people's thoughts (Sumner argues ending "too big to fail" but keeping NGDP growing at 5%/year)https://www.themoneyillusion.com/it-really-really-really-doesnt-matter-who-gets-the-money-first-part-2/ …
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Pathological on so many levels. Give government employees more salary, but those employees won't gain. Apparently only thing central banks buy are perfectly priced gov bonds, don't need to discuss any other Cantillon beneficiaries. WTF?! Malicious dishonesty via obscurantism.
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I think he'd def agree re:gov't employees salaries (Sumner is fairly libertarian) -but re: bankers getting rich..he does think bonds are priced about right (Fed hasnt bought material amt of bonds since QE3)- If I sell bond to govt for $, do i benefit? crux=are bonds priced right?
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Who knows what he actually believes. I was just paraphrasing the whacky, obviously wrong things he said.
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Right, but if Cantillon Effect was playing a big role, Sumner would argue: "then why did rates RISE on news of new QE?" (as they did with QE1-3) Those rise in rates (drop in bond price) would HURT the rich bankers who were trading with the Fed, no? https://www.themoneyillusion.com/interest-rates-and-the-facevase-problem/ …pic.twitter.com/iIhkYNHgmV
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Tons of things can cause rates to rise. It's a multicausal world.
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People often forget how important the mechanisms by which this money gets into the system are.
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Macroeconomics is the art of ignoring the obvious in favor of belaboring the hopelessly speculative with pseudo-scientific math and pseudo-Greek prose. The Cantillion effect is one of the very obvious things that they very artfully ignore.
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No it’s easy. You just hit the ‘Increase Aggregate Demand’ button then sit back and watch the GDP roll in. Problem solved
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Bears about as much resemblance to the actual financial institutions as chess does to a medieval battlefield.
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Do you find some analogies between Cantillon effect and bitcoin or bcash mining?
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Miners are essential to a POW cryptocurrency, fiat Cantillon effect beneficiaries typically are not. Also miner rewards and fees are explicit and public, Cantillon benefits and penalties are tacit and usually ignored, but not less real for being so.
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#Socialism in#Venezuela has been super efficient at destroying wealth. As usual, the most vulnerable: elderly pensioners, teachers, children have been hit the hardest. Think your fiat currency of choice is safe and you will retire comfortably with your savings? Think again...pic.twitter.com/xrVfajHldH -
you know what else has been super efficient in destroying wealth? US economic sanctions and intervention.
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The US only stopped buying Venezuelan oil in January, 2019 so NOPE, you commie propaganda is wrong. In the meantime, the boli-bourgeoisie has been living the high life with all the wealth they stole in the
#Capitalism they supposedly hate...pic.twitter.com/is6NrjmfEr
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oh your use of CAPSLOCK has won you the argument. well played sir. Believe what you want to believe.
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I believe in what I have seen and lived. Unlike you, I have lived in communism and I have seen both sides of the game playing it. It's you who wants to blindly believe in something you have never actually lived.pic.twitter.com/ZRKs6oNtMx
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I live where socialist policies are put into great effect on a daily basis. The irony of you calling me an SJW is typical though - you, nor I, have any position telling other people how to live their lives.
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