The US Economy appears to be on shaky ground and potentially headed towards a Recession. Some people speculate that we may already be in one. What defines a Recession or a Depression? Lets talk about the economic factors that go into the overall state of the economy and what exactly a Recession is.

Ed writes in to ask what is meant by the Velocity of Money. It is, as it seam, a measure of how fast money is moving through the economy, but how is it used? Lets explore.

A listener email raises questions about Inflation. How is it calculated, how does it effect us and what are deflation and stagflation?

Durning the past two weeks alone I have recieved more questions about tax plans than I have in the remainder of the past year. This can mean only one thing, a Presidential Election is on its way. Lets take a look at alternative tax plans including Flat Tax, Fair Tax and Negative Tax plans.

Carl asks for more information on the Bretton Woods Agreement. What was it, how did it shape out monetery policy and is is still in place? And how do the outcomes of wars change global monetery policy?

Carl asks for more information on the Bretton Woods Agreement. What was it, how did it shape out monetery policy and is is still in place? And how do the outcomes of wars change global monetery policy?

A student writes us today to ask wheter the biggest affects of the Kyoto Accord are Ecologic or Economic. It is quite a keen observation and one that is full of passion. Listen in to hear why the accord is more economy than ecology.

An email comes in from a frequent listener asking what the Carry Trade is, how it works and how it impacts the economy. He goes on to ask what it means to have the Carry Trade un-wind.

Linda emails us to ask what the differentce is in the Money Supply figures M1, M2 and M3 and how they effect her personally. Linda, thats what we are here for.

Charles asks what is the purpose of the IMF (International Monetery Fund) and what are SDR's (Special Drawing Rights). Well Charles, I'll try to boil this down to something simple, like "The IMF is a Central Bank for Central Banks!"

Regi emails us to ask some questions about the World Bank. Does it operate like a regular bank? Who can borrow from it and under what conditions? Does the World Bank charge interest? Lots of questions here Regi, lets get started!

Rose, a frequent emailer, asks us today what the role of the World Trade organization is and whether it is a good thing or a bad thing. Well Rose, like many things in economics it depends on who you are and where you live. Lets talk about it.

Within a day of our last episode on Hedge Funds, the mail began to roll in. The most common questions? What are Derivatives and how do they work? How are Derivatives used by Hedge Funds and how risky are they?

Art sends us an email today asking us about Hedge Funds. He notes that they have been mentioned in the news frequently but no one explaines what they are. So he asks, What is a Hedge Fund? and a lot of other questions regarding them. Art, you're not alone out there in not understanding. We're here to help, listen in.

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?"