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Ripple Effect

The Cantillon Effect Remains in Full Force

Loading ...Addison Wiggin

June 24, 2025 • 2 minute, 12 second read


Cantillon Effectfiat moneywealth creation

The Cantillon Effect Remains in Full Force

Central banks set monetary policy – allowing them to create money out of thin air. Those who are closest or the first to access this newly-created money tend to be the biggest beneficiaries.

This is known as the Cantillon Effect.

And for all the progressive talk about “wealth inequality” in America, the shift off of the gold standard since 1971 has kicked this effect into high gear – not tax policy.

Wealth creation – from being able to access capital to buy assets or start a new business – has been the biggest driver of this inequality, as worker wages have been stagnant at best when adjusted for inflation.

Access to money, makes more money.

In the last three years alone, thanks to a soaring stock market, the top 1% of Americans has seen their wealth grow by 25%, or $10 trillion:

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The systemic wealth transfer isn’t a flaw of fiat money – it’s a feature.

Your best bet to protect yourself? Invest in non-fiat assets, such as gold and bitcoin.

Gold prices are still significantly undervalued in fiat terms. Bitcoin, even with its volatility, offers higher long-term return potential.

“Gold is for protection (and for love),” our friend Frank Holmes likes to say, “Bitcoin is for growth.”

~ Addison

50 Major Companies That Will Likely
Fail to Survive Trump’s MAGA Economy

Turn On Your Images.

Many have 5-star ratings.

Most are “buys” per Wall Street.

But they’re dead companies.

Click here to see the full list.

P.S.: Looking for small-cap companies that are driven by fundamentals and not just retail sentiment? Join our Fraternity!

Each week, we explore more interesting investment ideas, often brought by our contributors and special guests.

For instance, in last week’s Grey Swan Live! with Chris Mayer, we explored some of Chris’s top investment ideas, including some of the best value plays in countries such as Sweden and Poland.

For U.S. investors, tread lightly – these companies can only be bought on the pink sheets, where volume is light and prices can swing wildly. But if you’re looking for value now, going overseas may be just the place to do it.

Meanwhile, you can also join our Portfolio Director Andrew Packer at the Rule Investment Symposium in Boca Raton on July 7-11, 2025. Click here to attend and meet your future cutting-edge resource investments face-to-face.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three.


Gold: The Only Thing Standing Still

July 11, 2025 • Dominic Frisby

Since the US confiscation of Russian assets in 2022, pretty much every pull back to 50-day moving average (red line) has been bought, and they continue to be bought. The average is now flattening out, as you would expect with this summer consolidation, rather as it did late last year. Some sideways consolidation is good. Ideally, you want to see the short-, medium- and long-term moving averages all flatten and converge. There often follows a big move higher.

Gold: The Only Thing Standing Still
Households Get It, Even if Governments Don’t

July 11, 2025 • Addison Wiggin

We know many consumers continue to live paycheck to paycheck. After spiking higher, the drawdown in savings—cash that can be used in an emergency—is back to pre-pandemic levels.

While the overall debt picture is ugly, in some ways it isn’t – and that it may take some more time for a debt crisis to reach a kitchen countertop near you.

Households Get It, Even if Governments Don’t
The Rally That Didn’t Flinch

July 11, 2025 • Addison Wiggin

As we knock off for the week approaching mid-summer, it strikes us how hard it is to distinguish signal from noise. Markets defying gravity gives us pause.

Don’t buy in at elevated prices.

Keep your asset allocation in full view.

Buy cheap.

Sell dear.

It’s a funny old world, isn’t it?

AI is buying engineers like they’re first-round picks. The military is investing in rare earths like it’s the 1950s space race. Tariffs are flying, cocoa’s getting scarce, and your cereal may soon come with a luxury markup.

None of it, likely, concerns your portfolio.

The Rally That Didn’t Flinch
Matt Milner: Now You Can Buy SpaceX — Should You?

July 10, 2025 • Addison Wiggin

This new wave of tokenized shares is exciting. It has the potential to break down walls and democratize access to pre-IPO giants.

But at the moment, it’s also risky, opaque, and largely unregulated.

So while we applaud the innovation, we urge caution — especially if you’re being offered something that seems too good to be true.

Matt Milner: Now You Can Buy SpaceX — Should You?