“Cash” is Only a Physical Manifestation of a Number

I was asked a couple of days ago what I mean when I say that cash is only a physical manifestation of a number. It’s a good question. First, we need to ask “what is a monetary instrument?” I just ran a poll on Twitter about gold to see how many people actually think that[…]

You Need to Know Your Tobin – Ex Post Nonsense

If you are from Champaign Illinois or study economics at the University of Illinois, then you know who James Tobin is. Fig. 1: Tobin! Tobin was from Champaign Illinois. I, too, was born in Champaign-Urbana. Now, some of you might be wondering what all this “Tobin business” is that I’m up to. Well, frankly, it’s[…]

“Affordability” for the US Government is Never a Question of “Money”

“Affordability” for national governments like the US, UK, Canada, Japan, Australia is always in terms of real resources (iron ore, agricultural capacity, water supply, labor supply, etc.) and never “money”. If you still do not understand this concept, you will soon. Forty years of neoliberalism and nonsensical mainstream economic policy errantly focused on the finances[…]

A Portrait of Failure: Gold, the Gold Standard and Bretton-Woods

Gold can be pretty to look at, but it can also be quite depressing. Economics joke. Oftentimes we hear people of a particular political and ideological persuasion insist that gold is “money”. Afterwards, they declare that we should all remain silent whilst they lecture us, drawing upon their vast storehouse of anti-knowledge, asserting that currency[…]

Galileo on Trial: A brief look at what it is like to argue with mainstream economists

“Galileo. You are hereby charged with the crime of continued support of the theories of Copernicus – namely, heliocentrism, which the church has declared to be both heresy and nothing new. What say you?” “I do not feel obliged to believe that the same God who has endowed us with senses, reason and intellect has[…]

The Other Side of Me

Most people know me as that nice, accessible economist fellow with a beard who spends his free time on Twitter answering the public’s questions and railing incessantly against the mainstream. Yeah, that’s me. Unapologetically so concerning the latter part. I’m a bit unusual in my approach, I’ll admit it. I have a bizarre sense of[…]

Junk Economics: A Brief Look at Mainstream Mysticism

Today’s article is a continuation of my last concerning the mainstream’s zero lower bound and loanable funds fantasies with a look at fiscal rules and other shenanigans. Fig. 1: A Mainstream Economist Coupled with the debunked Loanable Funds Theory is the mainstream assumption that the national government experiences a hard financial constraint and must fund its[…]