Inflation Isn’t an Accident — It’s a Wealth Transfer Mechanism

[Anghat]

Most of us never think about how big a trillion dollars really is. If someone spends one dollar every second it takes more than 31 thousand years just to spend one trillion. Right now America is creating around a trillion dollars every 90 to 120 days. This is not earned or produced. It is simply printed money entering the economy.

The strange part is that most people never see any of that new money. Money printing does not make everyone richer. It makes the rich even richer. When the government creates new money it does not fall from the sky. It enters through banks, hedge funds, corporations, Wall Street and big asset markets.

When this happens stock prices go up, real estate goes up and commodity prices go up. The people who are close to the financial system get the new money first. Everyone else pays the price later through higher costs. This idea is called the Cantillon Effect. Those closest to the money win. Those far from it lose.

When a trillion dollars enters the system groceries become more expensive. Rent, gas, insurance, housing and almost everything starts to cost more. But salaries do not grow in the same way. It feels like we are getting poorer because the value of money falls faster than we can earn it. The system is not broken. It works exactly like this on purpose.

People who own assets become richer even without working harder. They are not always smarter or luckier. They just hold things that rise in value when money is being printed. Asset owners win while wage earners and savers struggle. Saving cash means holding something that keeps losing value.

The rich prepare by turning their money into assets that cannot be printed like gold, silver, bitcoin and real estate. Every time new money is created real assets increase in value. If a trillion is being made every few months and we do not feel richer it means the money is moving past us not to us. Learning about money and investing can help us be on the receiving side, not the paying side.

[Cryptohygenic]

Most of us never think about how big a trillion dollars really is. If someone spends one dollar every second it takes more than 31 thousand years just to spend one trillion. Right now America is creating around a trillion dollars every 90 to 120 days. This is not earned or produced. It is simply printed money entering the economy.

The strange part is that most people never see any of that new money. Money printing does not make everyone richer. It makes the rich even richer. When the government creates new money it does not fall from the sky. It enters through banks, hedge funds, corporations, Wall Street and big asset markets.

And surprisingly, you still can not prove the claim of what exact amount of money they prints because it is regulated and those in the regulating positions will likely want to have some monies in their pockets and tells you a false figure they printed. Definitely you can not doubt them because you are not there where they printed them and it is not a transparent monetary system.
So you have no choice than to believe whatever they say.
If you want think the excessive amount of printed monies is a key drive to your savings loosing values over economy inflations, then don't hold your money for too in the banks. Invest it on assets that has hedges against inflations such as bitcoin, stock or real estate assets.
Crying out loud without taking drastic actions will not solve the problem.

[Apocollapse]

Yeah the printed money are mainly used to make the government rich, donation and funding for banks.

The key of how the society will work very well is make sure people have no free time rather than focus to work for surviving. Most people nowadays are like that, people are working only for surviving every month and the government are happy with that.

They didn't count as unemployed and they also don't have a power to attack the government, a very good citizen.

[palle11]

The rich prepare by turning their money into assets that cannot be printed like gold, silver, bitcoin and real estate. Every time new money is created real assets increase in value. If a trillion is being made every few months and we do not feel richer it means the money is moving past us not to us. Learning about money and investing can help us be on the receiving side, not the paying side.

I don't know whether it is an effort that the rich makes intentionally because they see that new money has been pumped into the system or that they are always investing, they seem to have this means to still live in good standard even in harsh economy or inflated economy. Truly I have notice that only a very few percentage fall out of that level of richness in their life time and such few are those who are not investing. I think they understand the economy business and how to stay on top. Bitcoin for example is becoming the new investment drive for the rich. They are leaving gold and stick, and investing in bitcoin which is yielding alot of return asset for the future and running against inflation. This is a lesson that savings in fiat won't make anyone rich but investment in bitcoin has a greater possibility for that change in finance status.

[allfriends88]

The system has been operating as it should from the past until now and has always been maintained by those in power. Those of us who have just realized this feel powerless to do more because they hold complete control. The difference now is that it's been refined to portray the government as the savior of the economy.

[Accardo]

If only the people paid lesser attention to these rich politicians and focused more on the power they've got to run the society or community assigned to them, they'll be no much trouble about who prints a certain amount of dollar or not. All of that belongs to the top politicians it's their game, the people have powers to be their own magnificent lords and magistrate to create a better life by building more products in the farm, and lower the price rate at which food is sold to the society. This would take a better step at leveling down how everyone thinks so much about the government as though we are here to worry about them all our lives.

[Bitcoin Smith]

But this is how the system trapped us with no real possibility of escaping this mechanism unless we also end up rich and enjoy the benefits of inflation. We can't really beat the inflation though because the money printing decision is in the hands of leaders and the central bank so we all have to follow this but realizing is the first step and bitcoin provides as an opportunity to not use the rigged money but it doesn't solve the entire problem which needs much bigger reforming on the policy level of every country.

[justdimin]

If only the people paid lesser attention to these rich politicians and focused more on the power they've got to run the society or community assigned to them, they'll be no much trouble about who prints a certain amount of dollar or not. All of that belongs to the top politicians it's their game, the people have powers to be their own magnificent lords and magistrate to create a better life by building more products in the farm, and lower the price rate at which food is sold to the society. This would take a better step at leveling down how everyone thinks so much about the government as though we are here to worry about them all our lives.

The entire "left vs right" was literally created because of this. Republican voters and democrat voters both have the same trouble, that trouble is republican politicians and democrat politicians. If only the voters realized that the problem isn't with each other, but with the ones in power, they would realize they hold all the power and they can throw down the government and all the bad people in it and elect people who would actually work for them instead of working for themselves.

This is true in almost every single nation too, democracy can be corrupted only by making sure voters hate someone other than the corrupt people, and USA does that very well. They literally turned their elections into a tv show, just to make sure people are not aware of the real trouble.

[MFahad]

If only the people paid lesser attention to these rich politicians and focused more on the power they've got to run the society or community assigned to them, they'll be no much trouble about who prints a certain amount of dollar or not. All of that belongs to the top politicians it's their game, the people have powers to be their own magnificent lords and magistrate to create a better life by building more products in the farm, and lower the price rate at which food is sold to the society. This would take a better step at leveling down how everyone thinks so much about the government as though we are here to worry about them all our lives.

Until common people can't recognize their own power, its not possible for people to become cause of their own development. In our country people often prefer decisions of the government. They never think that real power are with them. all people should help each other together and increase production of those things that are essential for human needs. The greatest human need is food. If we keep food cheap it will be easy for us to live. No human being can develop until he tries for himself. Instead of waiting for decision of the government, try to bring about positive change in yourself. This will make our society progress and prosper. And people can succeed in solving their own problems. Also they will be able to live a comfortable life without any difficulties.

[Pablo-wood]

But this is how the system trapped us with no real possibility of escaping this mechanism unless we also end up rich and enjoy the benefits of inflation. We can't really beat the inflation though because the money printing decision is in the hands of leaders and the central bank so we all have to follow this but realizing is the first step and bitcoin provides as an opportunity to not use the rigged money but it doesn't solve the entire problem which needs much bigger reforming on the policy level of every country.

Inflation, Stagflation, Hyperinflation are all economic factors the government of the day use to keep it's citizens under control. Central Banks are intentional about excessive money printing mostly when countries spend more than they earn or take loans they find difficult to payback. The only way out is to grow our income if we must catch up with the hike in commodity prices that accompanies this inflations.

[Accardo]

Until common people can't recognize their own power, its not possible for people to become cause of their own development. In our country people often prefer decisions of the government. They never think that real power are with them. all people should help each other together and increase production of those things that are essential for human needs. The greatest human need is food. If we keep food cheap it will be easy for us to live. No human being can develop until he tries for himself. Instead of waiting for decision of the government, try to bring about positive change in yourself. This will make our society progress and prosper. And people can succeed in solving their own problems. Also they will be able to live a comfortable life without any difficulties.

Any dog that goes around sniffing every corner trying to figure out the reason everyone at huge length have a high percentage of their life fixated on the government, its discovery would be the  "great deception". Humans are of unique powers and capabilities capable to change a village or town, and promote environmental peace but the opposite is happening, because people are hoping on the government they'll relax over a single act of kindness that could save a home, and say it's the duty of the government.

Think of the pathological selfishness happening in the whole world, parents only pay closer attention to their own kids, which the government also found a way to be the cause of this, by allowing every responsibility pertaining to a citizens offsprings be theirs with little or help from the government, thereby making the capable ones to feel selfish over helping any issue that is not of their own kids,  making the lesser privilege to stay unhelped.

[DrBeer]

Most of us never think about how big a trillion dollars really is. If someone spends one dollar every second it takes more than 31 thousand years just to spend one trillion. Right now America is creating around a trillion dollars every 90 to 120 days. This is not earned or produced. It is simply printed money entering the economy.

The strange part is that most people never see any of that new money. Money printing does not make everyone richer. It makes the rich even richer. When the government creates new money it does not fall from the sky. It enters through banks, hedge funds, corporations, Wall Street and big asset markets.

When this happens stock prices go up, real estate goes up and commodity prices go up. The people who are close to the financial system get the new money first. Everyone else pays the price later through higher costs. This idea is called the Cantillon Effect. Those closest to the money win. Those far from it lose.

When a trillion dollars enters the system groceries become more expensive. Rent, gas, insurance, housing and almost everything starts to cost more. But salaries do not grow in the same way. It feels like we are getting poorer because the value of money falls faster than we can earn it. The system is not broken. It works exactly like this on purpose.

People who own assets become richer even without working harder. They are not always smarter or luckier. They just hold things that rise in value when money is being printed. Asset owners win while wage earners and savers struggle. Saving cash means holding something that keeps losing value.

The rich prepare by turning their money into assets that cannot be printed like gold, silver, bitcoin and real estate. Every time new money is created real assets increase in value. If a trillion is being made every few months and we do not feel richer it means the money is moving past us not to us. Learning about money and investing can help us be on the receiving side, not the paying side.

The wealthy prepare by converting their money into assets that cannot be printed, such as gold, silver, bitcoin, and real estate. Every time new money is created, real assets increase in value. If a trillion is being made every few months and we do not feel richer, it means the money is moving past us, not to us. Learning about money and investing can help us be on the receiving side, not the paying side." - This phrase explains the situation and hints at what to do.
The problem with most people is that they consider money to be purely an asset to be exchanged for goods and services. Rich people consider it a financial instrument for making a profit. That is, the approach of most people, greatly exaggerated, is “money = food,” while smart people consider “money = a tool to make even more money.” Until people learn to invest and put money into something other than their basic needs, they will remain as they are. Poor.

[Ruttoshi]

The wealthy prepare by converting their money into assets that cannot be printed, such as gold, silver, bitcoin, and real estate. Every time new money is created, real assets increase in value. If a trillion is being made every few months and we do not feel richer, it means the money is moving past us, not to us. Learning about money and investing can help us be on the receiving side, not the paying side." - This phrase explains the situation and hints at what to do.
The problem with most people is that they consider money to be purely an asset to be exchanged for goods and services. Rich people consider it a financial instrument for making a profit. That is, the approach of most people, greatly exaggerated, is “money = food,” while smart people consider “money = a tool to make even more money.” Until people learn to invest and put money into something other than their basic needs, they will remain as they are. Poor.

You're right. That's the difference between the rich and the poor. Poor people pile up fiat in the bank for the future in order to take care of their future needs, they forget that keeping fiat in the bank will do more damage their financial success. Printing money increases inflation and inflation eats up the purchasing power of fiat overtime.

The rich understands how to multiply their money, they buy assets with it and make profits from it overtime. This is one of the reason why the rich people who invested in assets will become wealthy and the rich people in fiat will get poorer overtime.

[wozzek23]

Bitcoin for example is becoming the new investment drive for the rich. They are leaving gold and stick, and investing in bitcoin which is yielding alot of return asset for the future and running against inflation. This is a lesson that savings in fiat won't make anyone rich but investment in bitcoin has a greater possibility for that change in finance status.

You've pointed out on a critical evolution. The rich aren't just swapping one hard asset for another rather they are migrating from scarce commodities to a scarce, sovereign monetary network.

Bitcoin represents more than a high-yield asset, it's more like direct picture of the inflationary system itself. Its fixed, algorithmically enforced supply and decentralized issuance make it the first truly neutral base layer for wealth—immune to the Cantillon Effect by design.

This shift signifies moving from playing a rigged game better, to choosing an entirely new playing field which is also fair in nature.

[Fortify]

You seem oblivious to the fact that most people who are employed in developed countries will own these assets through their pension funds that accumulate through their lives. Which means everyone in America is in receipt of that "rise in value" you mention. Not only that, inflation actually helps to decrease the value of debt that has already sold in the past, for example if America sells a billion dollars in debt to China and then devalues the dollar it will have to pay back less value. If used correctly at least, it can greatly benefit American citizens or countries that have similar scenarios. America as the reserve currency of the world actually has the most leverage to make use of this facility and are taking advantage of it - but it does reduce trust a little in their currency.

[abhiseshakana]

Banks, the stock market, and fiat money are the trio causing global economic chaos and are also the tools used by those at the top of the pyramid to siphon wealth from the bottom. These three are more than just economic infrastructure; combined with lobbying power, exclusive access, and policies prioritizing asset stability, they function as engines of wealth accumulation.

Banks disburse credit to purchase assets (supporting stock/real estate prices), the stock market passes profits on to capital owners, while monetary policy (fiat) fuels liquidity and low interest rates, creating a positive feedback loop that boosts asset prices and wealth accumulation at the top of the pyramid, while marginalizing the bottom (workers and MSMEs).

Banks exploit wealth through their role as creators and providers of credit, as well as gatekeepers of liquidity access and risk intermediaries. Easy access to low interest rates is provided for borrowers with collateral, while micro-entrepreneurs and consumer customers are subject to high interest rates, fees, minimum balance requirements, and penalties. So, small customers provide capital to banks. This results in an increase in the portion of national income derived from asset returns, even though the real sector and productivity are neglected. This makes the economy more vulnerable to crises and increases the wealth share of the top 3%.

The capital market plays a role in diverting profit flows and increasing company value to shareholders rather than to real investments or the labor sector, through a structure that provides information and ease of execution to large players. Unequal share ownership without equitable income distribution causes asset price inflation and does not reflect broader economic health. Pursuing EPS suppresses long-term investment, which impacts productivity in the real sector. This is evident in concentrated consumption among asset owners, while the bottom of the pyramid suffers from shortages.

Fiat money, through its monetary policies (QE, open market operations, money printing), affects asset prices differently from the prices of goods/services, resulting in the majority of monetized profits flowing to asset owners. When central banks print money to buy financial assets (bonds, MBS), asset prices rise. Asset owners experience capital gains, but they are slow and do not even affect real sectors such as wages and employment. Low interest rates encourage the purchase of risky assets, and speculation generates profits for the 3% due to rising asset prices. Asset inflation is easier and faster than wage inflation. The practice of manipulating/buffering exchange rates benefits large exporters or multinational corporations.