2 ms·
The mass printed cash has a home since day 1. The bank doesn't actually create money by printing, but by giving loans, in this case to major corporations and ho
by sph 2y ago
The mass printed cash has a home since day 1. The bank doesn't actually create money by printing, but by giving loans, in this case to major corporations and however was to benefit from this injection of cash.
The fine print no one tells you about is that these first beneficiaries basically gets a lot of money before it hits the wider economy, so they get money pre-inflation. When it trickles down to the masses like us, inflation and price rises have already hit. However perfect pricing information might be encoded in the stock prices, their effect is not instantaneous.
This is one mechanism by which companies and rich people get even richer during high inflation and volatile economy. That is, unless you buy into the insane Keynesian concept of inflation being a lack of spending.
- deleted 2y ago[deleted]