My terminology is rhetorical, and colorful to make a larger point. If it's confusing I'm sorry, I am unable to elaborate much in this somewhat ineffective method of communication. Of course it's hard to pigeon hole everybody, but the thrust of my argument is correct. In Austrian economics people who benefit from an inflationary boom are called "early recipients", and everybody else is called a "late receiver" or "non-reciever" (Bully wanabes and Brazil America). It's a horrible and unfair way to run an economic system.
mises.org
Now, the expansion in banks' credit, i.e., credit out of "thin air", begins with a particular individual or a group of individuals—in other words there are always first receivers of money out of "thin air".
The first borrowers are the greatest beneficiaries of the new credit since they are the first receivers of the newly created money out of "thin air"—their purchasing power has increased. The early recipients can now purchase a greater amount of goods while the prices of these goods are still unaffected.
Because the early recipients of money are much wealthier now than before the monetary injections took place, they are likely to alter their patterns of consumption. With greater purchasing power at their disposal, their demand for less essential goods and services expands. The increase in purchasing power, while boosting the demand for goods and services of the early recipients of money, also gives rise to demand for goods which, prior to monetary expansion, would not have been considered at all.
This increase in the purchasing power of the early recipients of money however, is at the expense of the late receivers or non-receivers. In short, this increase amounts to a transfer of real funding from the late recipients of money to the early recipients of newly created money. The manifestation of this transfer of real funding occurs once the early recipients bid prices of goods and services up. This means that the late recipients of money will now have less purchasing power at their disposal, all other things being equal.
As a result of the loose monetary policy of the central bank, the composition of goods purchased is now likely to change. A greater proportion of luxuries in relation to basic goods and services is likely to emerge.
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