Topic: Economics

The Common Short Squeeze in Markets

Dec 4, 2025

S&P 500 and the Microstructure of Modern Short Squeezes The E-mini S&P 500 futures contract (ES) is the undisputed primary global price-discovery vehicle for U.S. large-cap equities. On active days it routinely trades $600-900 billion notional (occasionally exceeding $1 trillion), on effective intraday leverage of 15-25X, and consistently leads both the cash S&P 500 index […]

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Story of the Bitcoin Wallet

Jun 12, 2025

This is my impressionistic explanation of how the Bitcoin Wallet works and how it fits within the larger Bitcoin ecosystem. There are 3 components to the Bitcoin core. The Bitcoin core is the software or programmatic implementation of the Bitcoin software system. 1. Bitcoin Mining 2. Bitcoin Node 3. Bitcoin Wallet Bitcoin miners compete for […]

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Simple Aquarium – Understanding Liquidity and Asset Inflation

May 28, 2024

You observe an aquarium filled with an assortment of small trees. The trees on the right seem larger, healthier, and more robust compared to those on the left. In fact, the further you look to the left, the less healthy the vegetation appears. You notice a water spigot located in one corner of the aquarium […]

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Q&A, Mom, Dad and the Financial Manager, Fiscal Spending, The Treasury, The Federal Reserve

May 28, 2024

Question: When it comes to the U.S. Treasury selling bonds, whether short-term or long-term, such as bills, do they have to coordinate at all with the Federal Reserve or are they acting completely independently and selling bonds only when and if the federal government needs money for their fiscal spending? Answer: The U.S. Treasury and […]

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Financial Instability, Sovereign Debt, Inflation, Fiscal Spending – Q&A Session

May 22, 2024

Question: Excessive money printing and fiscal spending are often cited as causes of financial instability. However, if a government issues bonds and the central bank buys them (essentially monetizing the debt), wouldn't this just lead to inflation without necessarily creating other problems? Answer: Excessive money printing and fiscal spending can indeed lead to financial instability, […]

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Walled Garden Economics

May 19, 2024

Our economy is a Walled Garden, with a lone security guard who has a gun, sets the rules, and issues vouchers that can be traded for fruits and vegetables. Security is the only entity in the Walled Garden with the power and authority to print and issue these vouchers. In the Walled Garden, agents produce […]

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Modern Zombie Economic System Can't Be Killed

Dec 25, 2023

Is a major recession or an unspeakable depression akin to 1929 possible in our modern age? Central banks stand ready, modern banking systems with derivative assets locked and loaded, fiat currencies ready to print and the cost of money digitally available to be distributed to anyone and anywhere in seconds. Our modern economy is global, […]

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Money Creation, Fractional Reserve Banking & Central Banks

Jun 29, 2023

Sovereign governments have the power to print their own currency. Governments authorize their Central Banks to manage their fiat currency. Central Banks have the authority to create money. Central Banks can create money that increase the money supply and money available for financial transactions. More money in the system is inflationary in nature. Inflation is […]

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Introduction to the Theory of Money Part 1

Jul 27, 2020

Money and currency is our medium for the exchange of goods and services. In the US, we use dollars. It is printed and regulated by the US Government. It is divisible, scarce, durable, portable, difficult to counterfeit, universally accepted, and stable. The value of a nation’s currency is correlated to its scarcity and wide acceptability. […]

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Bureaucratic Overreach and Minimum Wage Laws

Jun 18, 2020

A free society respects the individual. A free society allows for a frictionless exchange of products, services and labor. Laws are designed to be universal and add clarity and boundries in the interaction of sovereign individuals. Wages are paid to those who provide their time and services. Labor and time is paid in exchange for […]

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