Inequality, Interest Rates, Aging, and the Role of Central Banks
The monetary system has turned modern capitalism into some kind of social lottery system which has nothing to do with value creation and everything to do with social scheming (playing politics) and dumb luck.
It&#x27;s all about gaining preferential access to a limited number of opportunities and then locking opponents out - The monetary system actively helps capital holders to build moats around their businesses by ensuring that they and their business partners get preferential and disproportionate access to newly printed credit - This creates asymmetric playing fields which are anti-competitive by design.<p>Cantillon effects mean that the further an entity is from the source of new money, the more scarce money is going to be for them.
The lack of consistency when it comes to our perceptions about something as fundamental as the scarcity of money is the root of many of our modern problems.<p>People who have access to easy money tend to spend money more easily and in larger amounts and they also tend to produce less. On the other hand, people who don&#x27;t have access to easy money have to work much harder and produce much more value to get enough money to get by in a world where all the prices are determined by those who earn the easy money.