Tag: Federal Reserve

Why Commodity Currencies Are Better Than Fiat and Crypto

Image by Tim C. Gundert from Pixabay Many types of currencies have been used throughout history. Sometimes commodities defined them. Other times, private bank notes circulated as mediums of exchange. Today, fiat currencies reign supreme while some eye cryptocurrencies as the future. Like so many aspects of money, currencies are hotly debated. This results from..

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Markets Are Reteaching Centralization’s Dangers

Image by 14995841 from Pixabay Note from the author: I use the terms stability and instability throughout this article. However, resiliency and fragility, respectively, more accurately describe the phenomena that I’m describing. Centralization creates fragility and decentralization creates resiliency. Please note this as you read the article below which I left in its original form…

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Invest Easier By Better Defining Money

Image by Penny from Pixabay Everyone loves to talk about money. While commonplace, money actually means different things to different people. Its many and conflicting definitions lead to vastly different economic conclusions and tend to confirm one’s preferred viewpoint. As a result, money’s lost all utility as an objective investment tool. However, redefining it in..

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No, Fed: Supply Construction, Not Demand Destruction

Image by bridgesward from Pixabay Everyone loves to dunk on the Federal Reserve (Fed). To many, the setters of U.S. monetary policy never get it right. Its stable of Ph.D. economists are always too late, or too slow, or too early, or too fast. Shockingly, many have built prominent careers in peddling this viewpoint. Yet,..

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Money’s Many And Problematic Definitions

Image by PDPics from Pixabay There’s no escaping the Federal Reserve (Fed) when it comes to investing these days. The Great Financial Crisis (GFC) showed how the movement of money through the financial system can impact markets and mainstreamed these previously obscure discussions. As a result, flexing your financial system “plumbing” expertise is now fashionable…

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Banks Create Money From Leverage, Not Thin Air

Image by Kranich17 from Pixabay Not a day goes by without the need for money. Whether buying a cup of coffee, checking your investment portfolio, or contemplating monetary policy, money is always top of mind. Yet despite daily use, money confounds us. Even experts ascribe mythical qualities to it. For example, many believe that banks..

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Pondering Investment Themes After The Russian Invasion

Image by linsenfutter2016 from Pixabay So much for returning to normal. I had hoped that easing COVID restrictions would supercharge economic growth this year. Many affected industries and markets were rebuilding and reopening to a backlog of robust demand. Sure, markets had issues to grapple with: inflation, changing central bank policies, and the return of..

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Rising Rates And Volatility Might Create Future Opportunities

Image by QuakerGirl22 from Pixabay Catching inflection points is the holy grail of trading. It’s what makes investing lore. From shorting the 2005 housing boom or skyrocketing technology stocks in 2000, to classic value investing, taking contrarian positions can create large profits and legendary reputations. While seductive, it’s a difficult way to trade over the..

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Inflation: Why Now And Will Bondholders Care?

Image by StockSnap from Pixabay As I sat down to write this month’s article, just one topic came to mind: inflation. Readers know that I just wrote on this theme. Yet, it remains topical and I have more to exploring to do. I’m specifically interested in why we’re seeing inflation now and does it even..

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Inflation Is Shortages And Thankfully Transitory

Image by kalhh from Pixabay I’ve got inflation on my mind these days. Who doesn’t? The U.S. 10-year treasury yield is up nearly 3-fold in the past year, stoked by fears of inflation. Commodities too are rocketing higher for similar reasons (in part). However, I’m not convinced these trends will hold. To me, the deck..

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