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 [ … ]
Category: How Things Work
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 [ … ]
EVERYONE Funds Their Spending
One of the most confused (and confusing) elements of endogenous money is the idea of “funding”. Endogenous money is not a new theory, but it is not well understood even [ … ]
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 [ … ]
Funding in an Endogenous Money System (Nerdy)
(I come across this topic quite a bit and I think it’s hard for some people to understand so I am going to get a little nerdy here and see [ … ]