Zero Interest Math

Much of employment is merely laundering your time and free energy into a work history... so that you can find more amenable employment. There are more different jobs than ever before The nature of employment and work has changed, and this is one reason why humans have to shuttle themselves incessantly across our cities and communities.  Specialization is definitely a boon, but we live in a world, where not only individuals specialize, but communities as well.   The needs of humans are relatively simple, and have been unchanged over thousands of years: food, shelter, warmth, and some kind of work or effort to be involved it.  Without something engaging to do, our abilities atrophy, both mental and physical.  This is perhaps one of the most important aspects of work and having a job, for your own personal development.  We could all take online courses and go to the gym every day, but making your labor a part of human development saves times and helps you focus. A job is never going to be

 This post is an attempt to make it easier for people to understand MMT, because a lot of people miss the point entirely.  If you do not understand MMT, know that it is not your fault, it is not the dunning kruger effect, and it is not a reflection of anything else you may or may not know about finance.  1) Money = Equity  2) National Debt = Market Cap  3) Deficit Spending = Capital Raise  4) Interest Bearing Government Securities = Time Locked Staking Smart Contract 5)  Bonds are like call options, they allow government to pay workers without immediately increasing "shares outstanding" 1. Money is Equity Your currency is not a claim to anything specific, and therefore government securities like bonds are not either.  They are simply shares.  One unit of currency is one share. 2. National Debt is a Market Cap A government does not "owe money" in a fictitious unit of account they themselves created.  The job of the central banks is not to preserve some money abstract

Managing Financial Instability Interest rates have many complex effects on finance and the economy, most of which are contingent on market conditions and responses, everything from domestic markets, fixed assets like real estate, consumer goods, and foreign trade. Given the complexity of interest rates, the recommendation most MMT people would make, is to use collateral to manage the price level.  As I discussed in a previous article, this does have political concerns, in that, in addition to ensuring liquidity and backstopping markets against financial insecurity, governments must engage in independent assessment of asset prices. Most western countries would prefer to have markets exclusively set asset prices, but the problem is, as soon as you dispatch government to backstop volatile markets, they have stepped into the game of pricing assets.  If you prevent large drawdowns, you are inherently creating an upward bias on asset prices.  How might we compromise on this? Is there a way t

Equilibrium returns is one of the foundations of conventional macro theory.  Without equilibrium between returns, most of the concepts and ideas of mainstream theory are invalid. Most of the mathematics of this is done by analyzing cash flows.  Financial analysts love talking about cash flows because it is something relatively concrete compared to asset valuation.  Using cash flows and time preference, one can compare two different securities in a mathematically concrete way. The big problem with analyzing cash flows, is that you then must ask "cash flows of what"?  So there is a relative pricing problem inherent in even this most straightforward analysis. All of this theory is relatively straightforward, although like anything, it may take a bit of work to learn the math and theory.  For this reason, we will go over briefly how present values are computed. At some point, I will probably write a more complete primer on the basics of interest rates, the things every financiall