The Fed or Banks? by Jim Berger, 6/2008 Updated 10/2025 Update I posted this article on a different channel in 2008. I decided to update and republish the content today, October 10, 2025. This article runs quite a bit longer than most of my publications. In addition, I have placed some rather technical modeling at … Continue reading Who Expands The Money Supply?
Money: Not for Consumption
Introduction One big difference makes money distinct from all other economic goods. The consumption of money contributes nothing to human well-being. Having more money by itself does not make one's life better. The holder of money values it only because he can trade it for something the consumption of which will improve his well-being. Indirect … Continue reading Money: Not for Consumption
An Annotated Definition of Money
Introduction It would prove difficult to count the number of commentaries online and in the media that refer to "money," yet seldom, if ever, do you see a definitive definition of "money." They proceed with the discussion as if everyone agrees on what "money" means. When people do define money, they frequently confuse "money" with … Continue reading An Annotated Definition of Money
An Introduction to Trade Deficits
When President Trump threatened to impose tariffs on steel and aluminum, it triggered a blizzard of articles for and against the proposal. Instead of parroting what others have said, I want to give you the tools to understand the issue behind the proposed tariffs: “trade deficits.” Definition To discuss the issue intelligently, we must first … Continue reading An Introduction to Trade Deficits
Trade Balance and Math Quiz
Introduction Providing images (and videos) can raise provocative questions that words cannot. In this newsletter, I present an image that should prompt questions about the trade balance and the mathematical basis for determining U.S. trade policy. Trade Balance The following image shows the trade balance between the U.S. and China in 2001 and 2003. (I … Continue reading Trade Balance and Math Quiz
Collective, Group, or Individual
Introduction Do humans act as collectives, groups, or individuals? Because of their discrete nature, humans cannot be part of a collective. When one or more individuals gather, they do not represent a single entity; yet, many commentators refer to people as “us” or “them”. By referring to people as collectives, communicators intend to create conflicts … Continue reading Collective, Group, or Individual
Conversation
Introduction Humans spend a huge amount of time in conversation of one sort or another. During the period in which I grew up, conversations consisted of written letters or telephone calls (limited by time and distance). Today, you can text or call anyone anywhere in the world with a device you carry with you. The … Continue reading Conversation
Importance of Trust
People do not seem to appreciate the importance of trust in binding civilization and society. We think that laws, contracts, and religion draw separate individuals together to create the complex network of connections that we refer to as civilization. I contend that without trust, civilization and society would collapse. It would require a rather lengthy … Continue reading Importance of Trust
Complexity of Trade
Introduction I have argued rather strongly that the phrase "trade deficit" has no significant meaning. The fact that one party in a transaction gets goods or services and the other receives some form of money does not mean that either party is getting "ripped off." Much of this misunderstanding stems from a lack of understanding … Continue reading Complexity of Trade
Explain Trade Surplus
Definition What is a trade surplus? To begin this discussion, let's define "trade surplus" from the same source that I used for the definition of a trade deficit. A trade surplus represents a net inflow of domestic currency from foreign markets. It is the opposite of a trade deficit, which represents a net outflow and … Continue reading Explain Trade Surplus