If we're going to throw around bad words, we need to get them right, and your definition isn't it. "Cannibalising" is used pretty narrowly in business to refer

If we're going to throw around bad words, we need to get them right, and your definition isn't it. "Cannibalising" is used pretty narrowly in business to refer to when a new development in one area hurts sales in another, and the new product fails to increase the market size enough to make up for it. What you're describing is a zero (or negative) sum game. Liquidity extraction isn't on its own a wealth generating action (although what you do with the liquidity will very often be, that's typically the motivation for extracting the liquidity), but otherwise it has no relation to what you're describing. Interactions (whether accurately described as competition or not) between separate units (such as two different governments) can't be "cannibalisation", since neither is "eating their own". However, it certainly can be zero (or negative!) sum. I suppose you could describe certain actions of a single government as cannibalising one part of its population's well-being for the benefit of another, but that's really out of scope here.