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Economics

Simple Aquarium – Understanding Liquidity and Asset Inflation

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 […]

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.  […]