🤑 Why the Rich Keep Getting Richer 🤑
Not all money is created equal. There are layers:
* “Base money” — cash and central bank reserves, universally accepted.
* “Bank deposits / credit” — money-like, created by lending, usable only if the banking system plumbing works.
* “Shadow claims” — derivatives, repos, and securitized debt; liquid only through intermediaries.
Just to make it clear, the fact that deposits and credit behave like money and usually trade on-par with money, 1:1, is not a law of nature, it is engineered banking plumbing which facilitates this, and strictly speaking not always true.
The rich get it. They have near-free access to credit, banks, and settlement networks. They borrow, invest, and convert money-like claims into real assets backed by base money. Gains compound, collateral grows, and the cycle repeats.
Most people hold deposits or wages — functional money, but without the tools to leverage it into assets. Middle-class and lower-income households typically use credit for spending rather than investment, except for mortgages, which are often the only leverage they access.
Wealth isn’t just money — it’s knowing how to turn credit into real, base-money-backed assets. And to be completely honest unequal access to financial instruments, or rather unfairly excessive use of those by rich - is likely primary source of inequality.
