The Cantillon Effect on Real Estate

Money Enters at a Point, Not an Even Spread

When central banks expand the money supply, newly printed units do not fall from the sky like rain. They enter the financial system through primary dealer banks and corporate credit facilities.

The first recipients spend the money before consumer prices rise. By the time that liquidity trickles down to wage earners, asset prices and housing valuations have already inflated.

This is why proximity to the printing press determines wealth preservation during monetary debasement.