Most people have never heard of the Cantillon Effect.
But once you understand it, you’ll see the world of investing differently.
What is it?
In the early 1700s, Richard Cantillon noticed a simple pattern:
When new money enters an economy, it doesn’t reach everyone at once.
And whoever gets it first benefits the most.
Here’s how it works today:
New liquidity enters through the Fed and through bank lending.
Both follow a similar pattern:
→ Markets and large balance sheets get first access
→ Large corporations and well-connected borrowers tap cheap credit next, they invest and expand at today’s prices
→ Asset prices tend to rise as new liquidity chases finite assets
→ Consumer prices often follow
→ Wages rise last, usually after purchasing power has already declined
Fed data shows how lopsided the playing field is:
- The top 10% hold nearly 90% of equities.
- The bottom 50% holds about 1%.
It’s a simple but powerful monetary transmission.
Understanding this won’t change the system.
But it might change how you think about where to store your savings.
For those of you who don't know, I write all about topics like this every week in The Informationist. Last week, we dove deep on this one.
Link in bio if you want to read the full explanation.
X employee gives me the REAL truth.
I finally got an insider who reviewed my support ticket, and what they told me explains EVERYTHING we’ve all been experiencing.
Certain accounts (like ours) are being pushed into “Tier 1” and quietly buried.
Your posts never even reach your own followers.
I’ll break down exactly what they said in the comments, please share this so people know what’s happening. 👇
It's time to put an end to creating a central bank digital currency in Canada.
@MPTedFalk's Bill C-400 will: Ban central bank digital currency, protect cash use, ensure businesses accept it & maintain cash infrastructure.
Less government control = more freedom & privacy for Canadians.
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Can you believe someone wrote this 70 years ago?
'By means of ever more effective methods of mind manipulation, the democracies will change their nature; the quaint old forms - elections, parliaments, supreme courts, and all the rest - will remain.
The underlying substance will be a new kind of totalitarianism. All the traditional names, all the hallowed slogans will remain exactly what they were in the good old days. Democracy and freedom will be the theme of every broadcast and editorial. Meanwhile the ruling oligarchy and its highly trained soldiers, policemen, thought-manufacturers and mind-manipulators will quietly run the shows as they see fit'. (Aldoes Huxley in Brave New World Revisited - credits to Steven Desanghere for bringing this quote to my attention).