Introduction Last week, I published an article that hinted at the possibility that drawing conclusions from too little data can be misleading. I offered as an example a graph of the money supply (M2) with no comparison data. Some might conclude from that one graph that The Fed has been steadily expanding the money supply … Continue reading Effects of Quantitative Easing
Month: April 2026
Total Reserves and Excess Reserves
Introduction This article has more to do with clear thinking than it does about the important, but widely misunderstood, subjects of money and banking. When one of the many talking heads on YouTube and elsewhere makes definitive statements about money and banking, and the federal reserve stop to ask yourself whether all the pieces actually … Continue reading Total Reserves and Excess Reserves
Money Creation Explained No. 1
Introduction I have on my schedule the writing of an article about the creation of money. Before starting this note, I watched a couple of videos about money and bonds. These presentations contain numerous errors that call the validity of the entire presentation into question. I want to offer some new information that readers can … Continue reading Money Creation Explained No. 1