Ask Cullen Page – Fixed

Something buggy was going on with the “Ask Cullen” page so questions haven’t been answered there in a few weeks.  Feel free to use this new page to ask questions when you want.  I usually get around to them within a few days.  As always, the page is linked on the main page at the top tool bar.

Sorry for the inconvenience or if you asked a question that got lost in the mess….




Got a comment or question about this post? Feel free to use the Ask Cullen section, leave a comment in the forum or send me a message on Twitter.

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

More Posts - Website

Follow Me:

  • Gubbmint cheese

    Cullen, am very interested in trying to get more information on the specific mechanics related to your view on the relationship between Corporate Profit Margins and Govt Deficits. If I recall correctly this leans on the “Kalecki Profit Equation” – which I understand on a macro level.. but would love to know/learn more on the specific transmission mechanisms involved. Do you have anything on that? Also – with the CBO now suggesting Govt deficits are starting to decline, do you see this as playing into a period where we see corporate profit margins starting to decline?

    thanks so much for your help!


  • Conventional Wisdumb


    Is there a connection between money creation and the equity markets?

    When the nominal value of overall equity assets increases as prices increase is that creating more money? — borrowing, margin and leverage increase as values increase.

    Sorry if this rudimentary but I can’t quite get my head around how equity markets function when it comes to money supply. Every sold share means money is removed and every bought share means money has been deployed in the market. The “net” change on a transaction is zero at that moment but a capital gain for an individual suggests an increase in wealth over time.

    Finally do IPO’s create new money?

    Trying to get my head around why the FED is so concerned about the positive aspects of the so-called wealth effect.

    Thank you.

  • Cullen Roche


    Can you clarify? Govt deficits add to corporate profits. The Kalecki equation makes this factually clear, but it should be rather obvious. After all, if the govt buys 50 jets from Lockheed Martin then their profits rise….

    See here:


  • Cullen Roche


    Stocks are securities. They are one way corporations raise capital. So, if a company goes public they are selling shares (claims) on their business. This means the company raises capital and you get a security giving you a claim on their cash flows. This process only creates money if a bank allows someone to take out new loans in order to purchase the new securities. So, if I take out a loan to buy into an IPO then new money is created. Stocks and bonds are ultimately securities. They are claims on money, but not the same thing as money. MR refers to them as “money-like”.

    Does that help?

  • Geoff

    Cullen, what about his point about rising stock markets increasing wealth, against which you can borrow (create) more dough?

  • Peter Fairley

    Is there a link for USA’s BOP, balance of payments, exports minus imports going back at least to 1945?