alright so as long as we're talking stocks... anyone wanna sell me on a compelling overarching narrative of how money moves around in the world? this is something i've wanted to understand since learning about crypto. where is it (mostly)? who decides where it goes (mostly)? etc
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the first step is defining "money"
this is actually very difficult and there is a lot of debate on this topic
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yes this is part of what i want a compelling narrative about! is most of the "money" tied up in stocks or bonds or even more arcane financial instruments? how does fractional reserve banking and fiat currency tie into it? etc etc
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An overarching narrative would be pretty difficult. USD is reserve currency so it's in high demand (despite a downtrend), but it's flooding the market from all the printing. The distribution of that printing has largely kept it in the hands of
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the wealthy or institutions (the cantillon effect). It's illogical to hold massive amounts of cash though so any significant amount of money gets tied up in assets. Predominately equities at the moment. So the cash is handed to businesses to operate with in return for equity.
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I did a small reply thread on the current status of the fed and huge blocks of money going on with the banks but it's only a piece of the massive puzzle you're asking about
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Replying to @parafactual
it depends what you mean by "distribute" - markets certainly don't exist to distribute money, they exist to facilitate the exchange of goods/services and money at agreed upon valuations
as @miftah___ra is pointing out, that valuation is often questionable, especially now
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also imo this is essential viewing for engaging with this topic since the fact that money can be printed without a fixed source of reference (i.e. the gold standard) becomes a HUGE part of money discussions nowadays youtube.com/watch?v=PHe0bX
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my preferred lens is that money is reified power, and is best examined through its ability to cause real world externalities. this framing allows us to "follow the money" by examining real world events, and tracing back their causes to prime movers
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In a related vein, news sources that do this are a surprisingly good proxy for "true" or "accurate" or what have you. Reuters and Bloomberg are heavily incentivized to act in this way. Are their views comprehensive? Not necessarily, but they do tend to be very accurate.
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