De-dollarization is not an abstract, insignificant concept. It is most pervasive in commodity markets, particularly energy, where a growing number of transactions are being priced in non-dollar denominated contracts. This is an offshoot of Western sanctions on Russian energy due to the Ukrainian conflict. To cope, Russia diverted energy exports … Continue reading
Category Archives: Economy
Defending the Dollar, Part 2
The line it is drawn The curse it is cast The slow one now Will later be fast As the present now Will later be past The order is rapidly fadin’ And the first one now Will later be last For the times they are a-changin’ – Bob Dylan Background … Continue reading
Paths to Insolvency
It is a wise rule and should be fundamental in a government disposed to cherish its credit, and at the same time to restrain the use of it within the limits of its faculties, “never to borrow a dollar without laying a tax in the same instant for paying the … Continue reading
Observations on the Central Bank
Facts Question: Is the Fed indirectly funded by taxpayers? Answer: The Fed is not directly funded by taxpayer dollars in the same way other government agencies are. Instead, the Fed generates its own income through several sources: After covering its operating expenses, the Fed remits its excess earnings to the … Continue reading
The System
“If current predictions of population growth prove accurate and patterns of human activity on the planet remain unchanged, science and technology may not be able to prevent either irreversible degradation of the environment or continued poverty for much of the world.” Royal Society of London and U.S. National Academy of … Continue reading
Charitable Remainder Unitrust (CRUT)
A CRUT is a type of charitable remainder trust that allows a person to donate assets to charity while receiving income for life or a specified term. The CRUT pays a fixed percentage of its assets each year to the beneficiary, with the remainder going to the charity after the … Continue reading
Determining Individual Wealth
Question #1 What methods exist to measure wealth inequality? Answer #1 Several methods are used to measure and determine wealth inequality. The most common method is the Gini coefficient, which measures the distribution of income or wealth across a population. Other methods include the Theil index, the Hoover index, percentile … Continue reading
Thomas Jefferson Deficit Spending
Thomas Jefferson on deficit spending, banks, taxes, interest Letter to John Wayles Eppes Eppes was a nephew of Thomas Jefferson. Monticello, June 24, 1813 Dear Sir, This letter will be on politics only. For although I do not often permit myself to think on that subject, it sometimes obtrudes … Continue reading
The Wealth Pyramids
Comparison between current and ancient depiction of pyramids of wealth. The red portion of the bottom pyramid, inspired by Mesoamerican models, represents the blood, sweat and tears of the poor. The rectangular gold reflects the wealth of the elite. It is true that the current trade deficit of the U.S. … Continue reading