The Wandering Economist

Roger from Colorado Springs writes in with this question: "I've read a few articles recently that mention the term Peak Oil and they seem to contradict each other. One says we are running out of oil, the other says we have a 40 year supply. What exactly do they mean by Peak Oil and what does it have to do with the economy? I understand oil is important, but some of these guys write like its the end of the world and others seem to think its no big deal. Whose telling the truth?"

Steven R. writes us asking "What is Fractional Reserve Banking and how does it work? I read an article that referred to it this week and I still don't understand it. It sounds like the banks are lending money that they don't really have, how can this be?" Well Steven, prepare to be awakened!

I get asked "What is meant by fiat currency?" quite often. Usually it is during a discussion about inflation or a recessing economy. This lesson will take a look at fiat currency, its history and its effects.

David from Youngstown emails "A friend of mine told me that the Federal Reserve Bank was not owned by the United States Government. He says it is privately owned by a group of European bankers. I say he is wrong. Wandering Economist, Who is right?"