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The Cantillon Effect and Executive Order 6102
The Cantillon Effect, named after economist Richard Cantillon, describes what happens when newly created money enters an economy. During this shift, some benefit more than others, and it depends almost exclusively on a person’s proximity to the money source. For example, those in closest proximity to the banks, large asset holders, and government contractors are…
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Government Debt Lore: Where It All Started
“Debt, like rust, never sleeps.”– Thomas Jefferson Government debt. You’re probably thinking of that insane US debt clock with the 36 trillion dollar sum (and counting) that the United States owes to its lenders, but have you ever thought about how a nations’ ability to borrow huge amounts of cash even began? How did nations…
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The USD is Getting Squeezed – Are We Screwed?
You can’t save your cash, and your bank is gambling with most of *your* money. Inflation is destroying the USD buying power and we’re beginning to see its effects in the broader economy. Where do we go from here? Fractional reserve banking is a system in which only a fraction of bank deposits are required…
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Hot Commodities: Which Ones Top the List?
Commodities are the backbone of every economy in the world… But what are they? A commodity is a raw material that can be bought and sold and can include agricultural products and energy resources. As nations strive to meet the needs of their citizenry and spur economic growth, some commodities have emerged as cornerstones of…
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What is BRICS?
Brazil, Russia, India, China, and South Africa… BRICS. The term was originally coined by Goldman Sachs economist Jim O’Neill and refers to the formerly mentioned, who are viewed as rising powers on the global stage. The BRICS countries are known for their significant influence in regional and global affairs, particularly in terms of economics, politics,…
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How broad is the study of Economics?
In simple terms, it’s the study of how and why money and resources move. The scale of this spans all the way from the international level down to individual communities. I don’t need to emphasize the role that economics play in our lives and the world around us, so understandably, the field is incredibly broad.…
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Understanding the Consumer Price Index (CPI) and Its Significance
The Consumer Price Index (CPI) is a widely used economic measure that provides valuable insights into inflation and the cost of living. Governments, policymakers, businesses, and individuals alike rely on the CPI to assess price changes and make informed decisions. This article aims to shed light on the CPI, its calculation methodology, and its significance…
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Understanding How Currency Exchange Rates Work
Introduction: Currency exchange rates play a critical role in international trade, travel, and investment. They determine the value of one currency relative to another, and their fluctuations can significantly impact economies and businesses worldwide. In this article, we will delve into the mechanics of currency exchange rates, exploring the factors that influence them and the…
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Understanding the Debt Ceiling: Implications and Challenges
Introduction: The debt ceiling is a critical aspect of fiscal policy that often sparks debates and discussions among policymakers and economists. It refers to the statutory limit on the amount of debt the United States government can issue to finance its operations. This article delves into the concept of the debt ceiling, its significance, and…
Econ Addicts 