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 [ … ]
Category: Myth Busting
(Popular Myths of the Economy and Markets….BUSTED!
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 [ … ]
Hard Truths for the Inflation Truthers
The main goal of this website over the years has been to search for an operationally sound and empirically supported perspective of how the monetary system works. I’ve debunked tons [ … ]
Is This The Worst Thing The WSJ Has Ever Published?
Well, I thought that 2018 had to be peak stupidity for humanity, but we are not off to a good start in 2019. I opened the Wall Street Journal this [ … ]
Debunking Passive Investing Myths on Bloomberg TV
Here’s my appearance from yesterday on ETF IQ on Bloomberg TV in case you missed it. We touched on: 1) Why is the myth of passive investing important to understand? [ … ]
5 Questions and Answers on “Passive” Investing, Part Deux
Here’s part two of the Q&A on passive investing. If you haven’t read part 1 it will be helpful to do that first since I laid out the necessary definitions [ … ]
5 Questions and Answers on “Passive” Investing
If you have read my 2012 essay on “The Myth of Passive Investing” then you probably don’t need or want to read what’s below. If there’s a consistent theme on [ … ]
The Difference Between Asset Price Inflation & Consumer Price Inflation
One of the more common responses to the fact that inflation is low is the idea that the inflation is all in asset prices. So, for instance, if someone were [ … ]