European Super League: The Top 1%, Money Printing & The Cantillon Effect
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The failure of the European Super League has been largely viewed as an attempt by Top European Clubs to take unfair advantage of an opportunity presented in the wake of the Economic chaos caused by the Coronavirus Pandemic Shock. However, another potential explanation for the attempt to form the European Super League may exist once we consider the Financiers of the venture, and what this may reveal about the State of the Global Economy and Society in general.
This European Super League was financed by Hedgefund JP Morgan, and for this reason, it may be a symptom of the current Asset Bubble caused by the overprinting of the US Dollar since the Coronavirus Pandemic accelerated a Cantillon Effect which has seen the spread of Capital into more speculative ventures around the world like the European Super League as US and International Markets are unable to absorb the full influx of cheap money.
The Cantillon Effect Explained
A Cantillon effect was first described by 18th-century economist Richard Cantillon who observed that money is not neutral because of the nature of price changes that result from an increase in the money supply.
In particular, Mark Cantillon noted that supplying lots of cheap money through the Banking system means that newly issued money will have an unequal effect on different parts of the Economy, and ultimately Society itself due to the pattern of wealth acquisition and distribution that is created when new Money is introduced into the Economy only through the Banking system.
Since Money enters the Economy at the specific point of the Banking system, it means that money has its highest value at this point it first enters the Financial system.
As the Transfer of money continues down the chain in Society over Time, the value of this money is progressively less than it was when it was first issued and entered the Financial System through the Banks.
The devaluation of money over Time means that those with first access to newly issued Money always have the opportunity to acquire goods with newly issued currency at its highest value.
In this way they are able to insulate themselves from inflation which is passed on further down the line as the value of the currency depletes over Time.
Furthermore, because Banks always use newly issued currency at its highest value, it is cheaper for them to acquire assets then everyone else in Society.
This is known as the First Spender Advantage held by Cantillon Insiders such as Banks who are able to gain wealth and value only by virtue of their proximity to the Money Printing Press.
The Bubble Cantillon Effect In The Post-Coronavirus Global Economy
According to the latest fiscal data about 25 percent of America’s GDP is being distributed in the form of Stimulus Money and Negative Interest Rate Bonds which enter the American Economy through Hedge Funds and other forms of Financial Business Rescues that reward Corporate failure and discourage real Capitalism as Stimulus Money is essentially directed towards keeping unprofitable Corporations alive instead of requiring them to go through the normal process of Business failure whey they would face Liquidation or Restructuring as would be the case in a normal Capitalist system.
US Hedge Fund JP Morgan can thus be understood as a Cantillon Insider whose proximity to the US Dollar Money Printing Press has allowed it to amass large volumes of interest free Capital searching for Investments outside the current Post Coronavirus Bubble Markets which have also seen the rise of Big Tech.
The Top 1% & The European Super League
The fact the European Super League was financed by Hedge Fund JP Morgan may be an indication of the kind of speculative ventures that are now arising out of the cheap money being printed in the United States which is first available to entities like Hedge Funds with the Cantillon First Spender Advantage.
US-based financial services firm JP Morgan was backing the venture and it was prepared to spend Billions in incentives and prize money to make sure the European Super League became a reality.
A venture of this magnitude in a depressed Global Economy may be more a symbol of the uneven dispartities in wealth we have in Society itself than its about the European Clubs seeking to save themselves from the ravages of the Coronavirus Pandemic Shock by leveraging their Brands.
It must be remembered that the current Stock Market highs do not benefit the ordinary man as the bottom 50% hold 0.7% of the Total Equity Market, while the Top 10% contol 87.2%, and the Top 1% holds 51.8%.
In other words, the 50 richest people in the world have as much wealth as the 165 million people at the bottom.
From this perspective, the European Super League may be useful as an indicator of future Wealth Capture strategies of the Top 1% as they seek to extract the most value and acquire as much wealth as they can from their proximity to the Printing Press before the current Bubble Market collapses, and we enter a new Economic Era which may be dominated by Cryptocurrency and perhaps Gold.
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