Nearly 300 years ago, Irish economist and financier Richard Cantillon explained how excessive money printing causes inflation and a divergence between the “haves and have-nots.”
As Hedgeye analyst Josh Steiner wrote in a 2021 edition of the Early Look, the same dynamics apply to the current U.S. economy. He reiterated that point today on The Call @ Hedgeye.
“In his day, the people closest to the king benefited, whereas everybody else was harmed,” Steiner says of Cantillon.
“The modern-day version of this is basically the same. Asset owners benefit from the printing of money, whereas renters, who tend to be lower-income folks, get basically crushed.”
“It’s a mystery to me why it’s not perceived as being as straightforward as it seems.”
“If one of you 785 economists at the Fed gave America, or the world for that matter, gave us three minutes of historical truth like Josh Steiner just did using a 300-year-old economist, you would change the world,” adds Keith McCullough.
“You would blow their minds. You’d get fired, but you’d have a moment.”
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