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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(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.
End of conversation
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I call it "specialization leads to special access".https://www.slideshare.net/mongoosenewyork/the-compassion-of-bitcoin …
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I could agree if the specialisation was used for the benefit of others, not to fill own bags on the expense of others. Ex: professors or researchers at a university or a medical lab.
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Specilization requires special access. Special access creates inequities. You can't trust people, but you can trust people to be people. Researchers and profs are not immune. "Science advances one funeral at a time" -- max Planck
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I don’t see the link with funerals and advancement in science. ICO presales merely incentivise some people to abuse their reputation to gain more wealth at the expense of others. I could say “ICO’s advance one scam at a time”, but it’s repetition rather than advancing.
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Science link=professors/researchers. ICO wasn't really my focus, the specialization statement is wide spread in scope. Look up that Planck quote, see what he meant before you venerate researchers "for the benefit of others"
End of conversation
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