Saving money and giving it to your children is something that can be done by an individual that benefits the individual child. It’s not something that we as an entire nation can do collectively. If everyone saves a hundred dollars and gives it to their descendants, it does not improve the overall society at . . . → Read More: Money is not a Durable Good
The story of taxation usually goes like this: You earn your dollars, then give some portion of it to the government. The government then takes your money and buys tanks, builds roads, and gives food to the poor. For local and state governments, that is a true story. However, for the federal government, which . . . → Read More: The Purpose of Taxes
As I discussed yesterday, the debt limit is the congressional limitation on the amount of bonds that the U.S. treasury can have outstanding at a given time. Two significant things happened in the 1970s that made the debt limit obsolete. One is the Congressional Budget and Impoundment Control Act of 1974. It formalized the . . . → Read More: The Debt Limit is Obsolete
The U.S. debt ceiling is, as this CNN Money article describes it, “The legal cap on how much the government can borrow”. That’s what it means in layman’s terms, but where does it come from? Why does it exist? How can it be changed?
The phrase “debt ceiling” appears to be a media created term. . . . → Read More: What is the U.S. debt ceiling?
Economically speaking, what is the difference between wealth and money? Here’s how I look at it. Wealth is all of the valuable goods and resources that you want in the world. Whether it’s a gallon of gas, or a video game, both are examples of things that people desire and\or use. Money is worthless pieces . . . → Read More: The difference between Wealth and Money
The way most modern banking systems are setup, it is impossible for someone to save money without somebody else going into debt. That’s because, as I described in a previous post, all money is created as a debt. Therefore, for anyone to get a dollar, they must either have borrowed it, or gotten it from . . . → Read More: Your Dollar Savings is Another’s Debt
Not a lot of people sit around and wonder how money is created, but for some reason I did. I found my answer and thought I would share it with you. In our economy, money is created by borrowing it. The story of money creation starts when someone wants to take out a loan. Say . . . → Read More: How money is created: As a debt