The Cantillon effect still applies… even for MAGA supporters.

The Cantillon effect “describes how the initial impact of new money printed by the government or central bank is unevenly distributed, leading to changes in relative prices.”

In layman’s terms: those closest to the money supply, such as banks, financial institutions, and Wall Street, are the first to benefit from the new money. Everyone else gets higher prices, later.

And in the meantime? A fog of revisions, spin, and distractions.

What happens when that fog lifts?

Markets don’t just correct. They reprice — all at once. And in that moment, those who prepared — who saw through the illusion and moved accordingly — are the ones left standing. Or as the retiring Sage of Omaha once famously quipped:  “Only when the tide goes out do you discover who’s been swimming naked.”

“Liberation Day” should have been the day that thousands of freedom-killing, job-killing, productivity-killing regulations were eliminated once and for all… or the day that Congress repealed pointless and expensive legislation.

Instead, everyone was liberated from inexpensive imported goods… and liberated from having a confident outlook on the future.

And at some point, in the relatively near future, Americans will also be liberated from having the global reserve currency.

It became clear at this point that the Trump/Elon relationship was strained. The “One, Big, Beautiful” deficit bill was the proverbial straw that broke the camel’s back.

Everyone saw the war of words last week. So did Putin, Xi, and every other adversary. It wasn’t a good look for the country or for the US government’s already stretched credibility.

You know what the ol’ timers say about history. It rhymes, right?

We’ve been following one particular “rhyme” recently.

The rise of inflation over the past four years and the prospect for another have been humming along with the same tune as the Great Inflation of the 1968-1980 period.

Right now, the data is showing a small break – in a good way.