Monthly Archives: February 2015

Part 29: What is a liability?

Time to get a little more philosophical. Or maybe legal. Maybe both. From Wikipedia: A liability is defined by the following characteristics: *Any type of borrowing from persons or banks for improving a business or personal income that is payable … Continue reading

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Part 28: Bankruptcy

To discuss the fears of central banks, we need to take a detour through bankruptcy. What is it for a private company? What might it mean for a government bank? Insolvency occurs when an individual or a firm is unable … Continue reading

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NY Times

House Republicans Intensify Attacks on Federal Reserve

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Indiana Jones Plot Holes

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Switzerland is doing a little better.

http://www.themoneyillusion.com/?p=28749

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The Hamster Wheel Desk

When the standing desk just isn't good enough.

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Part 27: The Paradox of Modern Money

Imagine a money genie shows up and gives you a trillion dollar bill. (Little known money fact: the trillion dollar bill has a picture of Arnold Schwarzenegger.) The money genie can create cash. Legal tender. It must be accepted for … Continue reading

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Part 26: Loose Money, Tight Money

In the late 1970s and early 80s, inflation was running hot around the world. In the United States, prices were increasing as fast as 10% annually. Nominal interest rates were high. People would not lend money without the promise of … Continue reading

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Part 25: The Interest Rate Mechanism

Think about a business. They're profitable. A million dollars of funds were originally invested in the company, and it returns a profit of 50k a year for the owner. That's 5%. Not too bad, right? They've got a thing that … Continue reading

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Saving and Investment: Weep for the Economists

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