The Replacement of the Ordinary Business Cycle by Irregular and Preventable Shocks

October 25, 2020October 26, 2020 ~ Cade ~ Leave a comment

Kitchin cycle. Juglar cycle. Kondratiev wave. Boom-bust. A whole bunch of malarkey. I don’t think recessions are nowadays really the result of ‘cycles,’ which is a term that sort of implies they are part of some natural order of things, like moon phases or the seasons. I think recessions are like ice ages. They are … Continue reading The Replacement of the Ordinary Business Cycle by Irregular and Preventable Shocks

Fractional Reserve Banking 101

June 9, 2020October 26, 2020 ~ Cade ~ Leave a comment

Many people are accustomed to the idea that banks magically print money and cause inflation. People wonder, "Hey, why can't I do that?" Well, the answer is you can't because nobody can, not even commercial banks. In a fractional reserve banking system like the one we have, commercial banks can only lend an amount equal … Continue reading Fractional Reserve Banking 101