When I say that I have adopted the principle of dependent variables, I refer to a relatively simple but wide-ranging concept. When you dig into nearly every subject, it almost always refers to a dependent variable at some level. It’s closely related to the concept in systems thinking that everything relates to everything else. I … Continue reading Principle of Dependent Variables

The concept of value plays a vital role in economic thinking. If you attempt to describe the actions of any person, you must make assumptions about what they value. All market activity depends on assumptions about value, whether implicit or explicit. I will discuss value frequently in my writing, and I want to make my … Continue reading The Value Principle

Introduction I repeatedly hear from many very intelligent people that The Federal Reserve is raising or lowering interest rates. Statements like these are not true and cannot be true. As I have often said, interest rates are a dependent variable. You have to change something else to change an interest rate. For those who listen … Continue reading How to Calculate Interest Rates

Introduction Ludwig von Mises developed the action axiom, which, because of its logical soundness, provides the basis for understanding all economic activities. Because of the fundamental nature of action, I have adopted it as one of the principles by which I hope to conduct my writing. Axiom Purposeful human action qualifies as an axiom because … Continue reading The Principle of Action

Summary::A video description of the difference Between Republic and Democracy Those who ceaselessly chant "save our democracy" should pause and consider for what they wish. Do they really want a democracy? Are they willing or do they want to give up their liberty to "save our democracy?" I discovered the following video on YouTube that … Continue reading Difference Between Republic and Democracy

Introduction I recently watched a video from the Mises Institute (The Human Action Podcast) that presented a conversation between Robert Murphy and Patrick Newman about how the Austrian school of economics should respond to Modern Monetary Theory (MMT). This video provided an excellent example of why, after 20 years as a member of the Mises … Continue reading An Appropriate Austrian Response to MMT

Summary: The Federal Reserve’s influence on the money supply and interest rates does not seem to match reality. Introduction Several years ago, I put together a series of graphs to demonstrate the differences in the Federal Reserve’s influence on money supply and interest rates during the tenures of three Fed Chairmen — Paul Volcker, Alan … Continue reading Compare Former Federal Reserve Chairmen

Monetary deflation presents a potential danger to the Markets, The Evidence Based on data from the Federal Reserve Bank of St. Louis, the supply of dollars (M2) in the economy has been shrinking lately. With all the media chatter about interest rates and price inflation, the shrinkage in the money supply has received little, if … Continue reading Does the Shrinking Money Supply Portend Economic Trouble?

I originally posted this article 10/17/2023. but I left out the images. It deserves a revisit with the images included. Many years ago, I bought a stolen car. I did not buy this car from the person who stole it, but I did buy it from the person from whom it was stolen. Fortunately, he … Continue reading Who Owns Government Property?

Summary::Always and everywhere, only individuals can provide the source and measure of economic value. Introduction When anyone suggests the existence of intrinsic economic value, they confuse or mislead the listener or reader. Nothing contains intrinsic or objective economic value. The elegance of the Subjective Theory of Value lies in its 1) simplicity and 2) ubiquity. The subjective … Continue reading The Principle of Subjective Value