This will be filled in gradually as I think of stuff to say!
Which brings up my 1st point:
My Position On Blog Updates:
What you're reading now may not be here when you return... I reserve the full right to modify my blog posts... not because I want to "cheat" at a debate, but because the purpose of this blog is to provide some help to people struggling with questions about banking and how that fits into the economy at large. I'm NOT an expert! ... if in some context I feel it's important to preserve what I'd written earlier as a reflection of what various reader comments were referring to, I'll do that. But my overall goal is to provide as much clarity as I can and I'm an iterative writer and thinker by nature, which means rewrites are in the cards! Perhaps the blog format is not the best for that. I didn't think about it too much in the beginning. I'm actively trying to figure this stuff out myself, so I'm not too concerned about preserving exactly how I was wrong at each step. I'll do my best to assign credit where it's due for helping shape my opinions and the posts themselves.
As an example of someone who doesn't take my position here (to his credit), take a look at this Steve Randy Waldman post (at interfluidity.com), which he essentially publicly crossed out in its entirely and called "bullshit" due to feedback from a commentator (Mark A. Sadowski) who convinced him that it was flawed.