Category: Finance & Economics
Obstacles to Efficiency – Taxes, Price Controls, Trade Restrictions
Welcome to the third and last post of the Supply and Demand Series. The first two posts described the self-regulatiing nature of the free markets and their efficiency in maximizing revenue and benefit to society. In this post, I’ll talk about government intervention and regulation. Specifically, how government impositions make the markets less efficient by …
Consumer and Producer Surplus & Deadweight Loss
This post is an extension to Supply and Demand – an Introduction, where we explained supply and demand curves, equilibrium price and quantity, and aggregate supply and demand. In this post we’ll understand what consumer surplus and producer surplus are. Reminder Here are the supply and demand curves for a certain good X. As we can see in the picture, the …
The Death of the Gold Standard – What Happened in 1971 (Part 1)
The gold standard is a monetary system where a country’s currency or paper money has a value directly linked to gold. Investopedia, What is the Gold Standard? Throughout a major part of human history, gold was the only globally recognized unit of account. And it still has that status, as every system/country/empire agrees on its …
Supply and Demand – An Introduction
The law of supply and demand is something that’s often referenced, but rarely understood. Even people with formal education in economics that can explain how it affected certain situations in the past can’t really apply the knowledge to forecast the future. In other words: this post can make you psychic, practically. Enjoy this gentle introduction …
The SEC Approved the Spot Bitcoin ETF
We’re witnessing history being made, ladies and gentlemen! The spot Bitcoin ETF is now approved in the US. Here’s the SEC’s statement. The main reason for this update are my 2024 predictions where the Bitcoin ETF approval was the first one. Four more to go! These are the ETFs’ providers and tickers: iShares (BlackRock) – …
The Inevitability of Bitcoin
Once it clicks, the inevitability of Bitcoin becomes so obvious that there’s no going back. This is especially common with people that have a more-than-basic understanding of the economic framework we all live in. It is well enough that people of the nation do not understand our banking and monetary system, for if they did, …
How the Money Printer Makes You Poor
You might have seen the “Money Printer” meme – it’s been all around the internet since the last economic crisis. In case you’re not sure to what extent the money printer impacts your life, you urgently need a lesson on quantitative easing. Quantitative Easing Simply put, quantitative easing is a monetary policy implemented by the …