Part 1: The Quasi-Gold Standard – A Truly Modern Monetary System

Money. It’s quite likely the most mis-used term in economics and finance, so much so that it’s conflation with credit pervades just about every textbook, the media, and the even the banking and finance industry itself. Even the dictionary no longer defines money in a way that clearly distinguishes it from credit. So, what’s the … Continue reading Part 1: The Quasi-Gold Standard – A Truly Modern Monetary System

The Inconvenient Truth About Modern Monetary Theory

First of all, there is nothing “modern” about modern monetary theory (MMT). It’s nothing but Chartalism, founded by German economist Georg Friedrich Knapp in 1905, renamed presumably to sound more, well, modern and appealing for marketing purposes. The basic premise of Chartalism is simple: the government supplies money to stimulate economic activity and creates demand … Continue reading The Inconvenient Truth About Modern Monetary Theory

Yellen Desperate to Avoid Financial Crisis Before the End of Her Term

Last week in a speech at an event in London, Janet Yellen, Chair of the Federal Reserve, was quoted saying that she does not believe there will be a run on the banking system at least as long as she lives. Despite widespread criticism from analysts claiming another financial crisis is not only possible but … Continue reading Yellen Desperate to Avoid Financial Crisis Before the End of Her Term