Remember that inflation is the CREATION OF CURRENCY AND CREDIT OUT OF THIN AIR AND THE CONSEQUENCE OF INFLATION IS: A RISE IN PRICES (BECAUSE THE CURRENCY BUYS LESS). Richard Duke
“Not to mention actively harming the living standards of low-income earners.
It may come as a surprise to you that the United States has been financing a welfare program that takes money from the poor and gives it to the rich.”
“Thornton begins with an important discussion of money creation and Richard Cantillon, writing: “… Richard Cantillon (1680s-1734?) [was] the first economic theorist and proto-Austrian economist …[he] showed how the interest rate and the money supply can create changes and distortions in the economy, a phenomenon now referred to as ‘Cantillon effects.'”
Monetary inflation is affected by who gets the money and credit first and who gets it last. As fiat money is created by central banks, private banks are in a position to expand the amount of loans they make. The wealthy have established relationships with the banks, and they have the real estate and assets to provide collateral for the loans. Large, established companies and wealthy individuals are in favorable positions relative to small businesses and people with low or average incomes. The loans allow big companies and wealthy individuals to invest in capital goods during the boom phase of the business cycle. Central banks thereby create artificial inequality and poverty. This is the primary Cantillon effect of redistributing wealth.” Richard Duke