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Pragmatic Capitalism

Practical Views on Money, Finance & Life

‘Essential Reading’

Books that Change Lives

Business Insider is running a cool feature on “books that changed our lives”.  It covers 24 different opinions on different books.  I had to laugh at the Macreconomics selection (the text by Ben Bernanke) given that I think much of the text contains erroneous views on money and finance, but that’s a different matter. I… Read More

Is the Stock Market a Zero Sum Game?

I got this question in the forum over the weekend and I think it’s an important one since I seem to get it quite often.   It’s interesting to note that there doesn’t actually seem to be a very good answer online (at least not as far as my brief search went) so I used a… Read More

Understanding Moneyness

Moneyness: Refers to how pure a particular type of asset or financial asset is in meeting the definition of “money” as a means of final payment.

Understanding Inside Money and Outside Money

One of the keys to understanding Monetary Realism and the modern monetary system (see full explanation here) is understanding the various forms of money that exist within the system.  For this piece I am going to focus on the system as it’s designed in the USA to describe the various forms of money and their relationship… Read More

Orcam Educational Resources Page

Just in case you’ve missed this….I’ve added a big resources page at the Orcam website.  It’s much better organized than anything here at Pragcap.  This blog is obviously just a running dialogue so a lot of good content gets lost over time if I don’t bookmark it.  Plus, this site is kind of a disorganized… Read More

Why the USA Isn’t Going Bankrupt….

Here’s a common question I get via email: “Can you explain why you don’t think the USA is going to have a Greek style debt crisis?” Good question! This is one of those things that really confuse people because they understand how their own lives and businesses work as revenue constrained entities. But the currency… Read More

Ending the Cash on the Sidelines Myth

If you turn on financial TV for a bit you’ll likely hear the term “cash on the sidelines”. This term is generally used during a bullish market commentary in which the pundit is pointing out that there is all this money that needs to “get into” the market. This leads one to believe that there… Read More