On the Ridiculous Notion that the Federal Reserve is a Private Bank and Concerning Those Persons Who Peddle the Nonsense – My Final Words on the Subject

Let’s talk. I’m going to be brusk. In other words, I’m going to be blunt, harsh, and brutally honest. I have to be. God would agree! There is no other way. There is not a thing wrong with a person if they lack an education. It is simply nothing to be ashamed of, for that[…]

There is No Conspiracy: The Federal Reserve is Not a Private Banking Cartel

Loanable Funds Theory is dead. Of that, there can be no question. The remaining stragglers who believe in this particular banking fairy tale – the mainstream – persist with their mystical ramblings about the zero lower bound which depend on loanable funds nonsense. The credit creation model is a thing these days, because it is[…]

“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[…]

Brief Notes for Wednesday Morning, 20.07.2016

Vacation is still ongoing, ending on Friday. Therefore, this explains the family pictures and political jabs on Facebook and the lack of economics content. Today, in brief, I’ll explain what QE is and the “purpose” behind it. The term QE, or “Quantitative Easing” was coined by Richard Werner, with whom I’ve had the great misfortune[…]

Foundational Problems of the Left Part II: Progressives and Errant Views of Inflation

As an addendum to yesterday’s post, before I begin, I’d like to clarify the point that taxes reduce spending power and thus, can reduce the spending power of the rich whilst raising the spending power of the poor. When progressives say, “tax the rich!”, what they’re saying, though they do not know it, is, “destroy[…]

The Money Supply, the Price of Money, Monetary Policy and Inflation

Much confusion surrounds the items in this article’s title. Thanks to orthodox viewpoints we have nearly an entire populace that believes Jack and the Beanstalk is a true story. Now, of course, I’m not being literal. I am, however, trying to make a point. Like, say, Tolkien, orthodox economists fashion a fantasy world all their[…]