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Economics

Q&A, Mom, Dad and the Financial Manager, Fiscal Spending, The Treasury, The Federal Reserve

Question:  When it comes to the U.S. Treasury selling bonds, whether short-term or long-term, such as bills, do they have to coordinate at all with the Federal Reserve or are they acting completely independently and selling bonds only when and if the federal government needs money for their fiscal spending? Answer:  The U.S. Treasury and […]

Categories
Economics

Modern Zombie Economic System Can’t Be Killed

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, […]

Categories
Economics

Introduction to the Theory of Money Part 1

Money and currency is our medium for the exchange of goods and services.  In the US, we use dollars.  It is printed and regulated by the US Government.  It is divisible, scarce, durable, portable, difficult to counterfeit, universally accepted, and stable. The value of a nation’s currency is correlated to its scarcity and wide acceptability.  […]