A better approach than analytic thinking. Introduction While serving in the Army in South Korea during the mid-1960s, I operated a petroleum tank farm. As with most equipment in Korea at the time, those tanks were in pretty shoddy condition. One day, the sergeant who ran the petroleum operation reported to me that one of … Continue reading Systems Theories

My Return to Publishing I apologize to my regular readers for my extended absence. I have had a lot of accidents and mishaps over the last several weeks that have prevented me from writing regularly. The clincher, however, was that my computer crashed. I won’t go into much detail, but it was bad enough that … Continue reading Preliminary Introduction to Systems Thinking

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

Historically, the stock market has been the most accurate predictor of economic performance. When the major averages rise, the economy tends to rise not long after. Based on this belief, many pundits believe the economy is on sound footing and will continue to grow in the future. But what's the story behind the increase in … Continue reading What Makes Stock Prices Rise?

I am an 80-year-old, white-skinned male. That information adds little credibility to this publication except that I do have an informed perspective. (Also, if you don’t listen to people with those attributes, stop here.) I lived during the following assassinations or attempts: John Kennedy Robert Kennedy Martin Luther King Malcolm X George Wallace Ronald Reagan … Continue reading Hate Revisited

In 2020, The Federal Reserve System reduced the bank reserves requirement to zero. Those who should know and care about that change don’t seem to care. Those who might not know should both know and care. “Monetary policy” has affected the lives of people since the founding of The Federal Reserve in 1913, and usually … Continue reading The Significance of Zero Reserves Requirements

A couple of days ago, I explained why markets should be viewed as living (complex adaptive) systems. It is important to understand that the ability of living systems to observe their own behavior makes it possible for them to change behavior. It is also important to understand that the discrete elements of living systems act … Continue reading Don’t Fix It, Let It Heal

Introduction When writing these articles, I try to abide by the principle of markets as complex adaptive systems (or living systems). Many people treat markets as mechanical systems, which denies the involvement of people in market interactions. Body Living systems have a couple of unique characteristics that separate them from mechanical systems. They are self-referencing … Continue reading Markets as Living Systems

On May 16, 2024, I published an article explaining why The Federal Reserve Bank does not create “money." They do create reserve balances denominated in dollars, but people cannot use those dollars as money, because banks hold them as reserves. Understanding the basics of how “money” is created is not just technical jargon. It's a … Continue reading Reserves Dollars & Money Dollars – Redux

The sight of ignorant protesters at colleges and universities across the country has reaffirmed for me the lack of value of the schooling (indoctrination) received by schools at all grade levels. You do not need an advanced degree to make a contribution to society. Instead of attempting to paraphrase the words of James Hillman, I … Continue reading Schooldays and Nightmares