Most people believe they must maintain a good credit score and that having a good credit score is a social signal that they are financially responsible. The truth is exactly the opposite. All fiat money created by central banks and the treasury is debt. When someone swipes their credit card or takes a loan, new …
Category Archives: Federal Reserve
The Magic of Fiat Borrowing
Awhile back I posted an article called ‘Your Government is Bankrupt’ and in that article I was right and I was wrong. I was right that the government is bankrupt, bankrupt meaning it takes in less revenue than it spends and can’t pay back its debt, but I was wrong that it matters, it doesn’t, …
Why Lottery Winners Blow the Money
Someone who wins millions in the lottery who isn’t used to having and managing millions doesn’t consider the opportunity costs of the lost future value if they were to invest some of the winnings. They only consider the present value of the money and their short time preferences like food, drink, clothes, car, fun, sex, …
Your Government is Bankrupt
By Don Cooper The debt clock says that the federal government currently has a debt of $28 trillion that must be paid back with interest which means, for all intents and purposes, the US Federal Government is insolvent, bankrupt. This isn’t a joke and it’s not a conspiracy theory, it’s political, economic and mathematical fact …
Effects of the FED and the State on GNP
By Don Cooper Production Production means creating market value. Consumption means destroying market value. Production is the act of taking factors of production (inputs to production) and combining them in such a way that the market value of the outcome is greater than the market value of the inputs separately. If the market value of …
The Economics of Bitcoin
By Don Cooper What is a real economic good? Simply put, a real economic good is anything that is naturally scarce and in demand. Scarcity implies that you cannot get all of the good that you want freely from nature and there is nothing anyone can do to change that, therefore someone must employ resources …