Debunking the ‘Federal Reserve Is Privately Owned’ Myth
There’s a saucy snippet of news doing the rounds that might have ambushed you at the water cooler at work, during a swanky cocktail party, or in one of those internet forum cesspits.
Apparently, the Federal Reserve is a shadowy, privately owned cabal, run by bankers, profiting off your ignorance, manipulating the economy from behind the curtain.
Cue the sinister music.
That’s right. While they aren’t running monetary policy, the reserve bankers are building and tearing down nations, plundering your bank account and teaching your cat bad manners.
Somehow, this has supposedly been going on right under our noses. Just a big, open secret, for anyone to examine.
Just like the lizard people, right?
Oh, did I mention it involves the Jews?
That’s right, those pesky Rothschilds are at it again!
There’s only one minor problem? And I must stress it is a very minor issue, hardly worth raising. But we’re trying to be comprehensive, so here it is.
It’s utter garbage.
Just like (spoiler alert) the lizard people conspiracy theory, this one about The Fed being a privately owned, zionist plot to overthrow your personal finances is completely removed from reality.
Operating Leverage Explained: How Fixed vs Variable Costs Drive Profit Volatility
What Is Operating Leverage?
Operating leverage sounds like complicated finance jargon, but it's a simple concept beneath all the noise. It’s all about how a company’s cost structure affects profit growth.
It can be used to understand how a change in revenue translates into operating income in percentage terms. In simple terms, operating leverage explains how small changes in revenue can lead to big swings in earnings.
The whole thing comes down to the cost base. In particular, it boils down to fixed costs vs. variable costs.
How Operating Leverage Works (Fixed vs. Variable Costs)
Every business deals with two types of costs. Fixed and variable.
Fixed costs don’t care whether you sell one unit or a million. They’re stubborn. Things like rent, equipment leases, and salaried employees. They’re on the books whether your revenue is booming or flatlining.
That bakery on the corner pays the same to lease its oven and storefront whether it pumps out 10 loaves or 100. This creates a break-even point. Sales need to hit a certain level before the business turns a profit.
Variable costs, on the other hand, scale with production. More units sold means more costs. Ingredients, packaging, shipping, and hourly wages.
What is Inflation? How It Works, Why It Matters, and How to Beat It
Inflation.
It’s a simple enough concept. Prices go up. Money buys less. But beneath that seemingly straightforward reality lies a force powerful enough to sink currencies, destroy savings, shape elections, and punch a hole through your weekly grocery budget. It’s not just an economic stat. It’s the oxygen level of the economy — too little and growth suffocates, too much and everything catches fire.
This guide cuts through the noise. We’ll break down what inflation is, what causes it, how it's measured (and why those measurements often miss the mark), what it means for your wallet, and how you can beat it in 2025 and beyond.
What is Inflation? Understanding the Basics
At its core, inflation is the rate at which prices rise — or more precisely, the rate at which your money loses value.
Your favourite flat white costs $5 today. Same beans. Same barista. Same Melbourne alleyway. But next year? $5.25. Harmless? Multiply that by every item in your life — fuel, groceries, rent, electricity, streaming subscriptions — and your $200 weekly shop starts looking more like $240.
This is inflation: slow, quiet erosion. And it compounds.
Australia vs Inflation: Over a Century-Long Battle for Economic Survival
Inflation isn't just a background hum in Australia's economy. It’s the silent force that has shaped every boom, every bust, and every political crisis for over a century.
From the gold standard calm of Federation to the spiralling chaos of the 1970s, from the wartime controls that locked prices down to the modern era of careful inflation targeting, the story of Australia is a story of constant struggle with rising and falling prices.
In this deep dive, we’ll unpack Australia’s inflation history, why it matters more than ever today, and what lessons investors, businesses, and everyday Australians need to remember.
History shows inflation never truly disappears. It just lies in wait, ready to roar back to life.
The Calm Before the Storm: Australia’s Inflation Landscape After Federation (1901–1914)
When the Commonwealth of Australia flickered into existence in 1901, the economic rulebook was simple.
Gold ruled everything.
Under the gold standard, every Australian pound was backed by real, glittering gold. No government could just print money at will. They had to find the gold first. Pretty convenient for a country where you could trip over gold sticking out of the ground on your way to the pub.
AISC: Why it's the best Mining Metric, and why it still Sucks!
Mining companies have a lot of moving parts. Extracting and processing minerals isn’t simple—it involves everything from drilling and blasting to transportation, refining, and site administration.
Each stage has its own set of costs, which can swing up or down depending on things like energy prices, regulations, and labor conditions. These variables mean mining costs are always in flux. Understanding these costs is the key to knowing if a mining project will ever be profitable.
Or if you're better placed to take that Christmas bonus to the casino and throw it all on lucky red 27.
Let's break down the key metrics: C1 costs and AISC, where they appear on financial statements, and why they matter to you as an investor. We'll explore how these metrics impact a mine's profitability and ultimately help you decide if it's worth your money.
C1 Costs: The Direct Costs of Production
C1 costs are the basic measure of what it takes to get the metal out of the ground and ready for sale.
They include mining, milling, concentrating, on-site admin, and refining. Basically, the "bare minimum" costs needed to produce the metal.
Clinical Trials: The Stages and What to Look For
Understanding clinical trials is crucial if you are interested in investing in pharmaceutical or biotech stocks. These trials are the make or break for a company in this sector, so you need to get your head around them.
Even the most exciting treatments with massive Total Addressable Markets (TAM) are meaningless without successful trial data to back them up.
The Four Phases of Clinical Trials: Breaking it Down
Clinical trials are conducted in four distinct phases, each designed to answer specific questions about the treatment.
Multiple trials can be conducted within each phase. Each trial will have specific targets, which will inform future trials and, finally, regulatory approval.
Let’s break them down one by one.
Preclinical Testing: The First Hurdle
Before a drug even reaches the clinical phases, it undergoes preclinical testing. This can include studies on cells (in vitro) and animals (in vivo) such as mice or monkeys.
These early tests check for basic safety and biological activity. If the results look promising the drug moves on to human trials.
Phase 1: Is it Safe?
The first hurdle for any new treatment is safety.
Goodwill: A Financial Illusion
Goodwill is one of the stupidest things in the world of finance. It's pure make-believe. It's the bitcoin of balance sheets. You can't see it, use it, and no one seems to know exactly what it is, but trust us, it's there.
Yea, no thanks.
Whenever you see a sizeable chunk of goodwill on a balance sheet, your spider senses should activate. Do a quick assets test. Remove goodwill from the equity and see what's left. You might discover that big bottom line equity is nothing but hot air. A company with billions of dollars in assets at first glance, might just be sitting on a pile of debt
So, how is goodwill created you might ask?
It's simple.
If one business buys another, then the acquired assets show up on the buyer's balance sheet. This includes two types of assets.
l Tangible assets: Real estate, inventory, equipment, loans, vehicles, accounts receivable, cash etc.
l Intangible assets: Brand names, commercial licensing agreements, patents and trademarks. They aren't physical things, but we can identify and isolate them.
But it's not only assets. Liabilities are also inherited, including borrowings, lease liabilities, accounts payable etc.