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Pragmatic Capitalism

Capital for Living a More Practical Life

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Why MMT is Important

Modern Monetary Theory (MMT) has been in the news quite a bit in the last few weeks.¹ It’s refreshing to see this considering how bad the state of macroeconomics is. I say this as someone who has been very critical of MMT for many years. I think they overreach on some items, but as a… Read More

Three Things I Think I Think – Bubbles Edition

Here are some things I think I am thinking about: 1)      Is there an emerging global housing bubble?  Here’s a nice perspective from UBS on the state of the global housing market. They provide a Global Real Estate Bubble Index that puts the highest risk markets in perspective. Their conclusions – there isn’t… Read More

Donkey Economics

Here’s a piece in the LA Times by Stefanie Kelton of MMT fame. The piece is titled: Congress can give every American a pony (if it breeds enough ponies) The basic gist of the article is that the US government has a printing press and it can afford to buy whatever quantity of output that… Read More

Three Things I Think I Think – Video Edition

I spoke at the Stansberry Investment Conference this past Tuesday. Hopefully we’ll get the full presentation out at some point since I covered a lot of useful ground in 30 minutes. Here’s a short interview I did afterwards. We touched on a number of topics including: 1) The difficulty of navigating the bond market these… Read More

Value Investing is Dead, Long Live Value Investing!

Here’s a great piece by Wes Gray discussing the viability of value investing. Here’s the money shot showing the relative performance of value investing strategies versus the S&P 500. We’re in the middle of one of the longest droughts on record for the value guys: I’ve made myself pretty clear on factor strategies – they… Read More

Let’s Throw Some “Keynesian” Bombs

People really like to throw bombs at “Keynesian” economics because it’s become synonymous with big government and unfettered spending. The really common (and incorrect) understanding of Keynesian economics is that people shouldn’t save and should just consume until they are so fat that the economy is at full employment. The other (slightly less incorrect) version… Read More

There’s No Such Thing as a “Sin Stock”

This post will at first appear like a discussion about morality, but I hope it will end as a post about objective reasons for market cap weighted equity indexing. So hang tight even if your head starts to explode a little. Here’s a good piece by Felix Salmon on why we should avoid “sin stocks”.… Read More

Screaming into a Hole About Government Debt

I’ve written 10,817 posts in the last 10 years. About 25% of those posts were about the operational nature of the US monetary system with the intent to explore and explain how the monetary system works. My goal was simple – to explain the monetary system in such a way that people could navigate the… Read More

Let the Ball Come to You

I sucked at baseball when I was younger. It wasn’t because I was physically incapable of playing baseball.¹ It was mainly because I was undisciplined and tried to do too much. For instance, I was a decent right handed hitter, but I spent half my time practicing left handed. I had this infatuation with being… Read More