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No secret‼️👀😉🔴inflation🔵rate⚫️marketsNo secret‼️👀😉 🔴inflation up⬆️ 🔵rate hikes⬆️ ⚫️markets down⬇️ 🔴inflation down⬇️ 🔵rate cuts⬇️ ⚫️markets up⬆️ Bitcoin and Crypto equal markets like DowJones NASDAQ and Co Chart 1 1972 - 1986 Chart 2 current situation - see update What do YOU expect in points of inflation? Let me know your thoughts in the comments🤗 ⬇️⬇️⬇️ Likes and Follow for updates appreciated🤗 Disclaimer: Not financial advice Do your own research before investing The content shared is for educational purposes only and is my personal opinion
TVC:DJI
by Crypto4Everybody
1
The Cantillon Effect And The Working ClassThe Cantillon effect is an economic phenomenon that disproportionately affects the working class. It's named after the 18th century French economist Richard Cantillon, who first studied the differences in income distribution between the wealthiest and poorest parts of society. In this blog post, we'll be exploring how the Cantillon effect works, and how it impacts the working class. Keep reading to learn more. Introduction to the Cantillon Effect The Cantillon Effect is an economic concept that explains how money creation benefits those at the beginning of the money supply chain and harms those at the end. It is an example of how the economy is rigged to work in favor of some, while leaving others behind. The new money created gives those at the top access to resources before new money reaches everyone else. They use this new money to purchase assets, goods, and services before prices increase. This furthers a cycle of wealth inequality, since those with new money get wealthier faster than those without. Understanding the Cantillon Effect is essential for anyone looking to create a more equitable and prosperous economy for all. It is an example of how the economy is designed to favor those with access to monetary policy decisions, such as banks and large corporations. This means wages for everyday workers remain stagnant while those at the top, with influence and resources, reap the rewards of increased wages and greater purchasing power. So while wages may stay the same, prices of goods and services are constantly increasing - ensuring more money flows to those in charge. The result is an economy that is severely rigged in favor of those who have access to the levers of power, leaving everyday workers struggling to make ends meet. This effect can be seen in the widening wealth gap between the wealthy and poor, as well as the increasing income inequality in many countries around the world Additionally, the economy is heavily biased towards the wealthy, as evidenced by the massive corporate tax cuts and government bailouts that are disproportionally directed to large businesses and the affluent. This allows them to systematically hoard money while wages stagnate and regular people struggle to make ends meet. The result is an unfair system that benefits a small number of people while impoverishing countless others. It's time we take action and make sure the economy works for everyone, regardless of wealth and privilege. Analyzing the Distributional Impact of the Cantillon Effect The Cantillon Effect is the redistribution of wealth from lower to upper income brackets through inflation and other economic policies. It works like a hidden tax on earnings, taking purchasing power away from lower-income communities and giving it back to the wealthy through an ever-widening economic gap. This uneven playing field is created by policies such as high interest rates and quantitative easing that are designed to benefit those with investments and business interests. By implementing these strategies, the government is essentially rigging the game in favor of those with earnings and investments, while leaving those with less earnings behind. This creates an unbalanced economy that works for some, but not for others. It can be seen as a regressive tax, as it disproportionately impacts lower-income individuals and families more than those with higher incomes. This is an effort to explain how the economy is rigged to work for some and not others. Without a basic understanding of how the economic processes are designed, those of lower income are at a disadvantage since they lack the resources necessary to make their voices heard in the power structures that determine economic outcomes. Income inequality has widened across the country, leaving many people feeling like they don't have a fair chance to succeed in today's economy. Unfortunately, this rigged system works against those who are already at a disadvantage due to limited resources and opportunity. By analyzing the distributional impacts of this effect, we can gain a better understanding of how the economy is rigged to benefit some and not others Finally, it is clear that the working class has been severely affected by the fact that the economy is designed to work for some and not others. Through analyzing the distributional impacts of this effect, we can gain a better understanding of how the system is rigged and how to address it. It is essential that working people have access to fair, equitable economic opportunities and that we work together to ensure that this system is working for everyone. Who Benefits from the Cantillon Effect? The Cantillon Effect is a phenomenon that benefits those with access to new money before it reaches the general population. This is especially true when it comes to working class people, who usually struggle to keep their heads above water. Through this effect, individuals and businesses that are among the first to receive new money from a central bank’s stimulus package can benefit significantly before the working class ever sees any of it. This means the working class is essentially locked out of the opportunity to utilize new money to its full potential, essentially rigging the economy in favor of those with access to new money first. Historically, this has been the wealthy elite, who are able to use their money and influence to acquire more resources faster than others. This unequal system creates losers and winners, with those who have access to more money and resources having an undeniable advantage over those who don't. The result is an economy that works in favor of the wealthy elite, leaving the rest of us struggling for scraps. Not only does this create a gap between the ‘haves’ and ‘have-nots’, but it also limits economic opportunities as resources become increasingly concentrated in fewer hands. It’s clear that this system of economic inequality needs to be addressed in order to create a fairer economy that works for everyone. The Cantillon Effect is a major factor in income inequality, as those with the most money are able to benefit from price changes before everyone else does Next, it is important to recognize that the losers in the economic rig are those without easy access to capital or privileged information. The Cantillon Effect is a prime example of how those with the most money can benefit from capital before everyone else does and this serves to create an even larger gap in income inequality. It is within our power to change this system that so unfairly works for some and not others and it is worth fighting for a system where everyone has an equal chance at success. The Working Class and Its Inequitable Access to Resources The working class, particularly low-income and minority groups, often lack access to resources such as quality education and healthcare, leading to economic instability and inequality. This lack of access to resources, combined with less job security and decreased wages, creates a working environment that prevents working class people from achieving economic stability and success. To make matters worse, many working class individuals are also hindered by government policies that have been crafted to favor the wealthy. This is why the current economy is often referred to as "rigged," working for some while leaving others behind. It is our collective responsibility to ensure the working class has equal access to the same resources as wealthier individuals so they can create a more financially secure future. This is compounded by the unequal distribution of wealth amongst different classes, as those in the upper classes have more resources to acquire and increase their wealth. While it may appear that winners consistently come out on top, the reality is that their success is heavily influenced by the economic systems that are designed to work in their favor. For example, wealthy individuals can access tax incentives and investments which are not available to those with lower incomes. Furthermore, those with more money can influence the outcome of legislation, creating more winners and, unfortunately, more losers. It's a rigged system that keeps people in different financial classes divided and ensures that some individuals have access to more opportunities than others. In order to fix this injustice, policies should be enacted that support and empower those of lower income levels so that they can gain access to the same opportunities and resources available to the wealthy few Also, earnings should be made more equitable by instituting a better minimum wage, reducing earnings inequality and providing more training, education and job opportunities. These policies have the potential to create a more level playing field in the economy where individuals of all income levels have the same chances of success, which will ultimately benefit everyone. How Governments Are Failing to Redress Inequality Governments around the world are failing to implement policies that would promote economic equality and reduce inequality. This is especially tragic, considering working class families are the ones that suffer the most. The way our economy is currently set up, working class individuals lack the opportunity to ever rise up and gain economic security. Those with money, however, can benefit from tax breaks, investment opportunities, and other benefits that are often denied to working-class citizens. This blatant injustice needs to be addressed in order for working-class families to have a chance at achieving a comfortable financial future. This includes inadequate levels of taxation for wealthy individuals, as well as failing to enact taxes on capital gains and other investments. To add to this, inflation plays a vital role in how the economy is rigged in favor of the wealthy. Through inflation, the value of money decreases, making it harder for people to stay afloat and even harder for those with less money to maintain their standard of living. As inflation continues to devalue money, those at the top are able to remain wealthier than those who are not as fortunate. Furthermore, governments often favor large corporations through generous subsidies and tax breaks which further exacerbate the divide between the haves and the have-nots However, recessions are the most apparent example of how the economy is rigged to benefit some and not others. During recessions, large corporations are more likely to receive bailouts while those on the margins of society, who often have no savings or access to credit, face increasing unemployment, poverty and homelessness. Furthermore, governments often favor large corporations through generous subsidies and tax breaks which further exacerbate the divide between the haves and the have-nots. It's clear that our economic system is still broken and needs fundamental reform in order to create a fairer environment where everyone can prosper. Moving Forward: Proposals for Change We need to address underlying issues in the economy such as inequality, corporate monopolies, and the lack of opportunities for those with lower incomes in order to create a fairer working environment for all. The working class are particularly affected by the power imbalances that exist in the economy, where their wages and working conditions can be heavily impacted by large corporations. This is further exacerbated by an unjust taxation system that favor's those in higher socioeconomic positions, creating even more inequality and unfairness. If we aim to create a just economy where all have an equal chance to succeed, we must address these issues head-on. Only then can we create a more equitable system that truly works for everyone. We should focus on creating fair and equitable policies that are beneficial to everyone, regardless of income or background. Unfortunately, the current economic system is often designed to benefit those who already have money and new wealth creation opportunities. This means those with economic privilege and access to new money often continue to be the primary beneficiaries of financial resources, leaving those without money excluded from participating in new economic projects. With new policies and regulations that prioritize economic inclusion and justice, more people can benefit from new money creation opportunities, creating a more equitable economy. We need to invest in education, job training, and other initiatives that help those at risk of being marginalized by the current economic system Additionally, inflation is another factor that works against those with lower incomes. As inflation rises, their money is worth less and less, making it difficult for them to afford even the most basic necessities. To combat this, policy changes need to be made to ensure inflation does not adversely affect those with lower incomes. We also need to invest in education, job training, and other initiatives that help those at risk of being marginalized by the current economic system. Only then can we create a fair and equitable economy that works for everyone. In conclusion, the Cantillon effect is a complicated economic phenomenon that impacts the working class more than any other part of society, and results in a widening gap between the wealthiest and poorest individuals. It's important for us to understand this phenomenon and its implications, so that we can work towards more equitable economic policies in order to create a fairer and more prosperous society for all. Articles sourced for this paper Mainstream economists generally confine the discussion of the Richard Cantillon Effect to redistribution of wealth that occurs with a rise in the quantity of money. The Cantillon effect is the unequal shift in relative prices that results from changes in the money supply, which was first described by the 18th-century economist Richard Cantillon (who inspired political economists such as Adam Smith and David Ricardo). The basic thrust of Richard Cantillons extensive analysis is that changes in money lead to changes in relative prices, which alter productive plans and lead to different fixed investment patterns, so that the new money changes the real economy, with winners and losers. In The Essay, the economist Richard Cantillon describes the economic phenomenon of changes in relative prices across various parts of the economy in response to changes in money supply. The Cantillon effect refers to an unequal distribution of the new money supply throughout the economy, which leads to different rates of growth in different parts of the economy. The basic contours of the Cantillon effect, namely, some individuals having more purchasing power while others having less, are still at work in the same economy, if money creation channels allow them to do so. Cantons best-known idea, the eponymous Cantillon effect, describes the effects of the creation of money on the relative prices and inequality in wealth in society. In comparison, the Cantillon effect, the neglected classic theory on how money allocation affects personal wealth, is among the inequities of our present-day society. The Cantillon effect claims that the first recipients of new supplies of money are given an arbitrage opportunity, the ability to spend the money before prices rise. Changing the supply of money in the economy in order to manipulate relative price levels does not really change anything over the long term. In fact, even price-stabilized economies need injections of money to counteract deflationary effects from economic growth. They are seeing asset prices rise, but prices are still falling across the rest of the economy, because that is happening just seconds after the Federal Reserve is clearly bloating up the money supply. Specific parties get the chance to spend the new paper money on goods and assets that do not have prices reflecting an increased money supply. In the modern economic context, Cantillons theory implies that banks and major institutional investors get access first to new supplies of money, invest them to earn returns, e.g., on stock markets or various risky financial products, and drive up the prices of assets in which they invest. Because the terms inflation and deflation refer to broad, economy-wide changes in prices, the name biflation is a bit misleading, since it does not necessarily refer to any increases or declines in the overall price level, but rather to changes in relative prices caused by changes in the supply of money and credit in various markets. Cantillons own analysis also does not appear to incorporate Austrians own inescapable characteristics of booms and busts associated with the emergence of new money into credit markets; for Cantillon, all new money has a similar redistributive, unequal impact, regardless of whether it is spent in real economies or is introduced into the credit markets, which lowers interest rates. Cited Sources www.investopedia.com 0 www.spencertom.com 1 river.com 2 fee.org 3 mises.org 4 phemex.com 5 www.aier.org 6 www.promarket.org 7 cointelegraph.com 8
OANDA:SPX500USD
by RobinhoodFX
4
Bond Market Signals Potential Trouble for the Federal ReserveIn recent weeks, the bond market has been sending a strong signal to the Federal Reserve: it may be making a serious mistake. The yield curve, which measures the difference in interest rates between short-term and long-term bonds, is currently more inverted than it has been since the early 1980s. An inverted yield curve occurs when short-term interest rates are higher than long-term interest rates. This can be a cause for concern because it can indicate that investors are expecting economic growth to slow in the future. When investors expect the economy to slow, they are less likely to lend money for long periods of time, leading to higher interest rates on short-term bonds and lower interest rates on long-term bonds. The current yield curve inversion has many experts worried. In the past, an inverted yield curve has often been a reliable predictor of a recession. In fact, every recession in the past 50 years has been preceded by an inverted yield curve. One reason for the current inversion may be the Federal Reserve's recent interest rate hikes. The Fed has raised interest rates several times in recent years in an effort to prevent the economy from overheating. However, these rate hikes may have had the unintended consequence of slowing economic growth. Despite the potential risks, experts believe that the current yield curve inversion may not be as concerning as it seems. They argue that other factors, such as the strong job market and low unemployment rate, suggest that the economy is still in good shape. In the end, only time will tell if the bond market's concerns are justified. However, the Federal Reserve will need to closely monitor the situation and be prepared to take action if necessary to prevent a potential recession.
FRED:T10Y2Y
by JoelWarby
2
Nasdaq Inverse Head & ShouldersIf the retail trading pattern plays out, price action will break out of this descending channel. The only way I see this accelerating is if we get a continued decline in the US dollar. Nothing else has changed geopolitically or economically. Monetarists still believe that increased rate hikes will bring down the economy, yet the Atlanta Fed's own GDPNow model is signaling a healthy +3%~4% growth. The Fed will be raising rates but this increase is going to start to slow down. It's not like they will do another 75% and then >75%. If anything it will go down in 25bps moves. Inflation of asset prices, inflation of monetary base and inflationary prices are different things and we probably need a new word to describe what is happening within the asset and price's space. As “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” QE did not cause inflation. Supply chain shocks and shutting down a global economy did. Copper rose sharply on Friday and has made a new high on the monthly consolidation pattern. If China doesn't show economic expansion, I would expect this latest move to be undone.
U
by Macrobriefing
Bitcoin and US10Y-US02Y connectionUpdate on US10Y-US02Y Compare RVGI indicator❌cross and Bitcoin Still not a cross yet in the extreme area of this indicator that would mark a quite good entry for BTC But the next cross for a possible Entry point is ahead dear Crypto Nation💥🚀😎 Let me know your thoughts in the comments🤗 ⬇️⬇️⬇️ Likes and Follow for updates appreciated🤗 Disclaimer: Not financial advice Do your own research before investing The content shared is for educational purposes only and is my personal opinion
INDEX:BTCUSDLong
by Crypto4Everybody
Crypto/Gold AnalysisCurrent economic and political general dismay impacts the valuation of different fiat currencies, specifically the USD(DXY). This is due to: Lower global trade activity (recession) = lower dollar supply = USD price increase Demand for USD increases for the safe haven currency = USD price increase Worldwide investors' stakes in equities and cryptocurrencies have been shortened. The price of Bitcoin is declining further with the US dollar substantially rallying. Nevertheless, its arguable intrinsic value may be better approximated through spread graphs, particularly - BTC/GOLD; as it omits the mentioned political and economic supply/demand effects for a more precise analysis. This may be recognised through technical analysis of past prices The main graph presents GOLD/BTC breaking out its long-term resistance; which logically makes sense. history reminds us: The upcoming recession doesn't look promising for such volatile securities with (arguably) no intrinsic value Inflation = Gold is Bullish Potential Trade Short BTC: Entry Price:16,700 TP:15,515 SL:16,920
TVC:GOLDShort
by Sanzhar_m
4
Bitcoin in connection to Home Sales 🚨🚨Update: Bitcoin in connection to Home Sales We just saw a channel break dear Crypto Nation - last time seen at Corona sell-off🚨🚨 If Home Sales find the way back into the channel BTC might recover as well Let me know your thoughts in the comments🤗 ⬇️⬇️⬇️ Likes and Follow for updates appreciated🤗 Disclaimer: Not financial advice Do your own research before investing The content shared is for educational purposes only and is my personal opinion
ECONOMICS:USEHS
by Crypto4Everybody
Bitcoin and the Philly Fed Manufacturing Indexive 🔴☑️⭐️🟢Bitcoin and the Philly Fed Manufacturing Index possible bullish scenario when... 1. Index is negative 🔴☑️ 2. Index breaks trendline⭐️ 3. enjoy the #BTC bull run🟢 Today bad value -19.4 ➡️ more patience necessary🚨 Let me know your thoughts in the comments🤗 ⬇️⬇️⬇️ Likes and Follow for updates appreciated🤗 Disclaimer: Not financial advice Do your own research before investing The content shared is for educational purposes only and is my personal opinion
INDEX:BTCUSD
by Crypto4Everybody
US 10 Year Treasury Yield: What's Next?Quick Analysis on 10 Year Treasury Yield on a 1M Linear Chart. 1) The US 10 Year Treasury Yield has been respecting a falling channel for multiple decades going back to the 1980s. 2) It is currently headed to the top trendline of the channel with a possibility to break in the coming months. 3) The measured move of the falling channel would bring it back to Pre-2008 ranges. 4) This may fall in line with the US Dollar strengthening (in the idea section below). 5) If US 10 Year Treasury Yield goes lower, there is not much more room for it to get to 0. What are your opinions on this? If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below. Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research! #cryptopickk
TVC:TNX
by MillionaireEconomics
17
GOVERNMENT BONDS YIELD. INVERTED CURVEWhat are GOVERNMENT BONDS YIELD? Bonds are Fixed Income instruments that allow investors to anticipate the flow of funds they will receive. What does an inverted yield curve mean? Put simply, this means that short-term US debt is more profitable than long-term debt. Economic theory says that in a “normal” situation, long-term lending should be more profitable than short-term lending. An inverted yield curve occurs when the yield on short-term bonds (US03MY, US06MY, US01Y) is greater than the yield on longer-term bonds (US30Y, US20Y) . This is bad for the economy and worse if it is the United States because it means that they are relying on the economy in the short term since the "normal" thing is that long-term bonds give better yields. Some economists and analysts see in this situation an indicator that a next economic crisis is coming, either in the form of a slowdown in GDP or even a recession.
TVC:US30YEducation
by Ed_Ale
Dollar slows for Thanksgiving or Christmas 2022Jerome Powell is the #1 Financial terrorist on Planet Earth right now, soon the powers above him will demand an end to his regime of Maximizing damage upon Working People around the globe Hyper financialization of all goods and services has proven to be a failed experiment. the global economy needs to organically re-organize and re-energize itself. One single un-elected US bureacrat is not suited to fix this calamity - and based on FED predications, analysis, and results of their actions - they are incompetent to the challenge at hand
ICEUS:DXYShort
by noam_chom