The Day The Dollar Died, Part 2 (thc0655)
The SDR was invented in 1969 and there were a number of issues of SDRs in the 1970s. During the ‘70s we had massive liquidity crisis, borderline hyperinflation, a quadrupling of oil prices, and a stock market crash. The dollar almost collapsed between 1977 and in 1981. The situation was so bad that in 1977, the United States Treasury borrowed money in Swiss francs. Nobody wanted U.S. dollars, at least not at an interest rate the U.S. was willing to pay.
Lehman, like other trusted institutions, used the money markets for short-term funding. And it could do that because it was a trusted institution that people believed could always pay its debts. And this trust is what keeps the financial system going — including the money markets.
You can imagine what happened to money market funds’ $1 NAV promise once Lehman failed.
After a nearly yearlong struggle for approval from the Securities and Exchange Commission, IEX today becomes a public stock exchange, like the New York Stock Exchange and Nasdaq, marking a victory for both the upstart exchange’s founders and Capital Group.
The Fed’s Failure Will Cost You (Tiffany D.)
Investors don’t realize that with most gold ETFs, they’re not buying and selling gold. They’re buying and selling pieces of paper the ETF provider creates. That paper passes to market makers in New York, and ultimately ends up as a claim on (or a disposition of) physical gold held by a custodian. Sometimes the gold in question isn’t even purchased or sold — it’s leased/returned to a central bank.
That’s the key question behind an intriguing new study, “The (In)compatibility of Diversity and Sense of Community,” published in the November edition of the American Journal of Community Psychology. The study, by sociologist Zachary Neal and psychologist Jennifer Watling Neal, both of Michigan State University (full disclosure: I was an external member of the former’s dissertation committee), develops a nifty agent-based computer model to test this question.
My physician explained that ongoing adversity in childhood leads to a chronic state of “fight, flight or freeze.” Researchers at Yale had recently shown that when inflammatory stress hormones flood a child’s body and brain, they alter the genes that oversee our stress reactivity, re-setting the stress response to “high” for life. This increases the risk of inflammation, which manifests later in cancer, heart disease, and autoimmune diseases like mine.
How statistics are twisted to obscure public understanding (westcoastjan)
If you look at recent airline statistics, you’ll think that a far higher number of planes are arriving on schedule or early than ever before. But this appearance of improvement is deceptive. Airlines have become experts at appearance management: by listing flight times as 20-30 per cent longer than what the actual flight takes, flights that operate on a normal to slightly delayed schedule are still counted as arriving ‘early’ or ‘on time’. A study funded by the Federal Aviation Administration refers to the airline tactic as schedule buffering.
Some manufacturers would respond to tariffs and other protectionist policies by simply moving existing overseas jobs to other countries, rather than back to the US. Other powerful forces working against large-scale increases in US manufacturing jobs include regulatory costs and an absence of suppliers in the US.
But even if manufacturing did return, the jobs may not, thanks to advancing technology.
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