Monthly Archives: February 2015
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
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
House Republicans Intensify Attacks on Federal Reserve
When the standing desk just isn't good enough.
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
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
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