Why Debt Runs the Modern Economy: The Cantillon Effect
The Cantillon Effect explains who benefits first when money gets created, but it doesn't explain when things really went off the rails. For that, you need to look at what happened next.
World War I changed everything. Before then, money was tied to gold and governments were constrained. Wars are expensive, so they borrowed and printed. What started as 'temporary emergency measures' became permanent features of the system.
By 1971, Nixon closed the gold window completely. From that point on, money became whatever government said it was. Inflation stopped being an accident and became a feature…
The skinny
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