Dear @snoreball
I must admit that I never heard about Cantillion effects and today I learned something new thanks to you.
This is named after Richard Cantillion which is when purchasing power is being transferred from those with old money to those with new money.
We're globally witnessing this process now, right? Some purchasing power is being transfered from FIAT to cryptocurrencies. Is that what we could call Cantillion effects?
I really appreciate the fact that you shared link to your publication via memo with me.
When the monetary supply is increased, the new money doesn't directly drop into our bank accounts nor does it fall from the sky
Indeed. It's all about distributing wealth, right? Our current economy isn't really good at that task.
 | I would gladly help you get some exposure with this post if you want me to. When will you publish it, just send me a link via memo, ok? I can bring some traffic already to this post, but I would need to ask you to help me little bit with task of promoting it: 1) will you reply to every comment? 2) could you visit accounts of those few people, who dropped interesting comment at your post? And then would show your own support by dropping some unique and valuable comment? Idea behind it is simple: I want to help people who will engage with their audience. I need to ensure that you will give back to community and show your support to others as well. Let me know what do you think. |
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Yours
Piotr
@cripto.piotr, thanks for inviting me, but after reading this great article I must affirm that the government strategy of gaining extra peny have been exposed through Catellion effect. No wonder whenever any government of any country increases salary nothing changed because they will indirectly increase tax, thereby raising the cost of goods and services. Government earn more money through the expenses of the poor populace. I'm happy to come across this article, it is an eye opener for me.
The government is clever, they have learned from history that if you tax the people directly, you will have a situation similar to France right now. However through inflation, the government can steal from the people without them knowing. It like comparing a mugger (taxes) to a pickpocket (inflation). The former is an obvious criminal so you know to defend yourself, the latter stole your money without you noticing.
Yes your correct @snoreball
Comparing inflation to "hidden taxes" is a great comparison @snoreball
Cheers, Piotr
Thank you for that amazing comment @maclevis
I'm glad you decided to share your thoughts with us.
Cheers
Piotr
Thanks for bringing this to my attention!
I thank you @crypto.piotr for sharing this with me. I knew the general concept that inflation is theft but this helped me see some of the details. Also I was unaware there was a name for this process
Thank you for dropping by @silverreport
Appreciate your comment :)
Yours, Piotr
Hi @crypto.piotr,
Purchasing power being transferred from fiat to crypto is not an example of Cantillon effects. Cantillon effects doesn't come into play here because no one is supposed to be able to mint new crypto. So in this case, the one with new money or new crypto are the ones holding the bags. It is the early adopters or old money winning in this space.
A crypto example of Cantillon effects would be the Oyster Pearl scam. The creator actually found a loophole in the ICO to print new Oyster coins which he dumped on the market to sell at a decent price. The losers were the bag holders of old Oyster Pearl coins who couldn't react in time before the price of Oyster dropped due to the massive selling.
Also, please share this post with others. I always make an effort to engage with my audience.
Dear @snoreball
Thank you for your explanation. Appreciate.
How did you like the response? Any decent comments?
Cheers
Piotr
A few. Overall, it feels like people don't quite have a full understanding of the topic and are using blanket statements to show that they are "contributing".
Not calling anyone out in particular.
Hi @snoreball
I had similar impression. Perhaps it's because (or partly because) subject of your post is not very familar to the majority of people and on top of that it's not easy topic to discuss.
Cheers
Piotr