You observe an aquarium filled with an assortment of small trees. The trees on the right seem larger, healthier, and more robust compared to those on the left. In fact, the further you look to the left, the less healthy the vegetation appears. You notice a water spigot located in one corner of the aquarium […]
Tag: economics
Question: Excessive money printing and fiscal spending are often cited as causes of financial instability. However, if a government issues bonds and the central bank buys them (essentially monetizing the debt), wouldn’t this just lead to inflation without necessarily creating other problems? Answer: Excessive money printing and fiscal spending can indeed lead to financial instability, […]
Is a major recession or an unspeakable depression akin to 1929 possible in our modern age? Central banks stand ready, modern banking systems with derivative assets locked and loaded, fiat currencies ready to print and the cost of money digitally available to be distributed to anyone and anywhere in seconds. Our modern economy is global, […]