November 12th 2023

I ran a poll on X formally known as Twitter yesterday asking The three theories of bank lending... Which one is true?

As expected on my part most people chose c, this is because the poll would have been seen mostly by my followers, and I have touched on this topic many times before. The way I asked the poll question really left one narrowly defined response that could be correct. This however does not mean that the people that picked fractional reserve loans are wrong, it just does not represent our current banking system. In fact both fractional reserve loans and the credit creation theory can work together. Nor would saying banks provide financial intermediation is wrong, just it does not have relevance to the operations of traditional bank loans.

Read full blog (HERE)

November 3rd 2023

I frequently encounter recurring arguments that challenge the well-established assertion of Modern Monetary Theory (MMT) stating that, for taxes to be paid, the government must first spend money into the economy. One of the most commonly used counterarguments suggests that banks are responsible for creating a significant portion of the money in the economy, thus implying that individuals could simply take out loans to pay their taxes. In this response, I will demonstrate why this notion is not feasible, though it is essential to address the resistance to MMT's foundational premise. 

Read full blog: (HERE)

October 23rd 2023

I few months ago a wrote a blog called Economic Pain, Climate Pain, or Both? In it, I had a system dynamic model that I created in the Minsky software created by Dr. Steve Keen. At the time I was using components of it on my larger economic model. There has been some interest by people if I could release the model file, so I have in this post. You will need the Minsky software. That can be downloaded for free here. The model in itself is very basic, but at the same time very accurate on fitting past data on CO2 emissions and global temperatures changes. 

Read full blog (HERE)

October 9th  2023

I couldn't help but to observe a recent back and forth about student debt between Rohan Grey and Bob Murphy on Twitter. I found both sides had interest points, but it appeared they were talking past each other for the most part. I thought it was worth an hour to sit down and write about it, no not Bob or Rohan, but this issue around student debt.

The issue of student debt has grown into a complex and divisive problem in recent years. Many are searching for solutions that can alleviate the burden on individuals while addressing the broader issues of accessibility and affordability in higher education. There are broad concerns and complexities that deserve examination. I will try my best to delve into the intricacies of the student debt crisis, emphasizing the challenges of accessibility, affordability, and targeted forgiveness to individuals.

Read full blog: (HERE)

October 7th 2023

In the world of modern economics, few ideas have stirred as much debate and discussion as Chartalism and Modern Monetary Theory (MMT). These theories have reshaped the way we understand the dynamics of money, government spending, and taxation. However, one aspect of Chartalism/MMT has been a subject of contention: the notion that "taxes create demand currency."

Read full blog: (HERE)

September 13th 2023

I have to point out that the graphic for the blog is by no means a shot against Stephanie Kelton or her ground breaking book "The Deficit Myth". So before I go into the issue of trade deficits I'd like to acknowledge that her book is the only MMT text I have read from top to bottom, and guess what, I liked it a lot!

Stephanie Kelton's book, "The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy," is a groundbreaking and thought-provoking exploration of economic theory that challenges conventional wisdom in a refreshing and enlightening way.

Kelton's writing style is engaging and accessible, making complex economic concepts understandable for a wide audience. She takes readers on a journey through the world of economics, breaking down myths about government deficits and spending that have held back progress for too long.

Read full blog (HERE)

August 10th 2023

In an interconnected and rapidly changing global marketplace, the efficiency and resilience of supply chains play a critical role in an organization's success. The ability to accurately anticipate and navigate supply and demand fluctuations, disruptions, and market dynamics is paramount. This is where System Dynamics, a powerful modeling approach, comes into play. System Dynamics offers a holistic and dynamic perspective on supply chains, enabling businesses to gain insights, optimize operations, and enhance decision-making processes. In this article, we will delve into how System Dynamics can model supply chains effectively and drive better business outcomes.

 Read full blog (HERE)

July 31st 2023

Often for fun, I will put together small toy model in Minsky, one rather famous model is the Lotka-Volterra equations or the Predator-Pray model. I have done this two system state model together in many variations with my eyes closed in the past. This time I wanted to play around with adding a plant species that the prey species would consume, instead of just setting a parameter as an exogenous birth rate that the prey species grows from. It took me about 1 hour, 45 minutes of which was optimizing my parameters to get the 3 system states to oscillate around and equilibrium without breaking down. 

Read Full Blog (HERE)

July 26th 2023

Global Gross Domestic Product (GDP) represents the combined economic output of all countries worldwide and serves as a crucial indicator of the global economy's health and performance. Over the decades, as economies have expanded and industrialized, so has the demand for energy on a global scale. The relationship between global GDP and energy consumption is a complex one, with far-reaching implications for economic development, environmental sustainability, and the well-being of the global population. 

Read Full Blog (HERE)

July 19th 2023
Climate change is one of the most pressing challenges of our time, impacting ecosystems, communities, and economies worldwide. It is a complex and multifaceted issue that requires a comprehensive understanding of the interactions and feedback loops within Earth's climate system. To gain insights into this intricate web of relationships, scientists and researchers have turned to a powerful modeling approach known as "system dynamics." In this blog, we'll explore how system dynamics helps us comprehend the complexities of climate change and enables us to devise effective strategies to address this global crisis. 

Read full blog (HERE)

July 5th 2023
In the realm of economics models are often employed to understand and predict complex economic phenomena. However, it is crucial to recognize that economic models differ significantly from the conventional scientific models used in the natural sciences. While scientific models are based on empirical evidence and strive for predictive accuracy, economic models must contend with inherent uncertainties, human behavior, and dynamic socio-political factors. This blog post explores the unique characteristics of economic models that set them apart from scientific models and highlights the challenges associated with their application. 

Read full blog (HERE)

June 29th 2023
In an era marked by technological advancements, economic progress, and human achievements, we find ourselves facing an undeniable truth: we have wasted precious time in addressing the pressing issue of climate change. The consequences of our inaction have become increasingly evident, leaving us with a daunting reality: it may be too late to reverse the irreversible damage inflicted upon our planet. This blog aims to explore the extent of time wasted, the dire state of climate change, and the urgent need for immediate action.

So I'm going to go into cray cray land for this one, If I was the leader of the world, I would have a set of commandments that would be enforced by military means, public shaming, and the removal of greedy personal liberties. 

Read full blog (HERE)