Excellent quote from Bill Bonner’s letter:
One does not see malinvestment at the time of money printing. Price increases are delayed and uneven, due to the Cantillon Effect whereby the early receivers of new money are able to purchase goods and services at existing prices. Later receivers or those who do not receive the new money at all suffer higher prices and a reduction in their standards of living. Even then most people do not link higher retail prices with a previous expansion of the money supply.
It would be hard to invent a more effective method for the destruction of modern society.
– “The Hidden Link Between Fiat Money and the
Increasing Appeal of Socialism” by Patrick Barron
