Did you hear about Tesla? Yeah, it’s up a lot. A lot. A lot. Like, hundreds of percent a lot. Or, 400% from its recent lows. Now, that might not [ … ]
Category: How Things Work
My View on “Late Stage Capitalism”
I am going to spend some time trying to put the debate about Capitalism and Socialism into perspective here. But before we can do that I need to properly define [ … ]
Let’s Talk About Sectoral Balances
I am a big fan of looking at things through the lens of the sectoral balances. For instance, I sometimes post this chart on this website which depicts the government’s [ … ]
Yes, Taxes Fund Spending
In the last few years MMT has grown in popularity and they’ve promoted the idea that “taxpayers do not fund anything”. While seemingly intuitive, this narrative is fundamentally wrong and [ … ]
Let’s Stop Talking About “Paying Off the National Debt”
When we talk about personal finance we often talk about paying off our debts to become financially free. But this is a fallacy of composition. While some households can pay [ … ]
My View On: Minsky’s Financial Instability Hypothesis
Hyman Minsky’s Financial Instability Hypothesis (FIH) has been an influential component of how I think of the financial markets and the economy. The FIH, in a nutshell, says that capitalist [ … ]
Is Government Debt “Equity”?
I’ve noticed a trend in some economic circles that seems to stem from the Positive Money and MMT people – this idea that government “debt” is “equity”. While the taxonomy [ … ]
The Monetary Duration Dilemma
I’ve been careful in my research on money not to call money a “store of value”. There’s a good reason for this which I will try to explain in this [ … ]
How Bond Vigilantes Really Think
Discussions on interest rates tend to fall into two camps – the state based view and the market based view. The state based view says that the government can always [ … ]