Bitcoin Not Crypto Who Benefits from Money Printing? | Cantillon effect Explained.
Jul 17, 2025
Discover the Cantillon effect and its impact on economic inequality, where money printing favors the wealthy. Dive into how Bitcoin might serve as a solution to these disparities. The discussion also highlights Bitcoin's impressive appreciation over four years and its resistance to money debasement. Personalized coaching is offered, aiming to elevate financial education and illustrate the real-world implications of fiat currency's flaws.
AI Snips
Chapters
Transcript
Episode notes
Understanding the Cantillon Effect
- New money printing doesn't benefit everyone equally; early recipients gain before inflation affects prices.
- This unequal benefit process is known as the Cantillon effect and causes unfair advantages.
Banks Create Money From Thin Air
- Banks create money by issuing loans they don't fully back, charging interest on money created from thin air.
- This fractional reserve lending gives banks and those with good credit a big advantage over others.
Fed's Role in Money Printing
- The Federal Reserve buys government debt with freshly printed money, fueling inflation while supporting government spending.
- Savers lose value on their holdings while debtors, including governments, benefit as debts become cheaper to repay.