Tag Archives: fiat currency

  • Blog

    Could Modern Monetary Theory (MMT) Actually Save Us?

    Spoiler alert: no. But that doesn't mean we won't try it.
    by charleshughsmith

    Friday, October 25, 2019, 5:19 PM

    33

    The problem is we’re misallocating capital, resources and labor on a vast scale. That’s the problem.

    Adding more currency and capacity/”growth” via programs like MMT doesn’t fix this problem; it actually makes it worse.

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  • Daily Digest
    Image by frankieleon, Flickr Creative Commons

    Daily Digest 11/21 – Bitcoin-Rigging Criminal Probe Launched, Who’s Going to Pay for LA’s Pension Plans?

    by saxplayer00o1

    Wednesday, November 21, 2018, 3:04 PM

    1
    • Parks chief warns of 'massive cuts, huge layoffs' as soon as 2020 (Chicago)
    • No more excuses. Fix Pa. pension funds | Editorial
    • Who’s Going to Pay for LA’s Unsustainable Pension Plans?
    • ECB Official Warns QE Exit Could Spell Trouble for Italy's Debt
    • U.S. recession chances edge up, risk Fed delivers fewer hikes: Reuters poll
    • BOJ's Kuroda rules out early end of negative rate policy (Japan)
    • Unthinkable?
    • Bitcoin-Rigging Criminal Probe Focused on Tie to Tether
    • NY BitLicense Approval, Blockchain for Energy Commodities, CFTC Enforcement, Advertising Use Cases and More

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  • Daily Digest
    Image by reyner media, Flickr Creative Commons

    Daily Digest 9/2 – Scientists Warn UN of Capitalism’s Imminent Demise, Skim Reading Is The New Normal

    by DailyDigest

    Sunday, September 2, 2018, 3:53 PM

    4
    • Scientists Warn the UN of Capitalism's Imminent Demise
    • A deadly storm is coming in Syria 
    • Report: Trump Admin Denying Passports to Citizens Along Border
    • So Much for The Great California Bail Celebration
    • Elections board takes less than a minute to reject proposal to close 7 of 9 polling places in majority-black county 
    • Skim reading is the new normal. The effect on society is profound
    • Attention, Shoppers: Kroger Says It Is Phasing Out Plastic Bags
    • U.S. court orders Trump administration to enforce chemical safety rule

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  • Blog

    What To Do With Your Cash?

    Is it folly to hold cash right now? Or brilliant?
    by Adam Taggart

    Saturday, July 22, 2017, 4:19 AM

    43

    Have you moved a material percentage of your financial portfolio to cash? Have you become so concerned about the meteoric ramp upwards in asset prices that you find it wiser instead to move to the sidelines, build "dry powder", and wait to re-enter the markets at saner valuations?

    If so, you have my sympathies.

    The past 5+ years have been brutal for savers pursuing this strategy. I know this well, as I'm one of those folks, too.

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  • Insider
    Shutterstock

    The Value Drivers Of Cryptocurrency

    These factors will determine which coin(s) will win out
    by charleshughsmith

    Saturday, June 24, 2017, 1:27 AM

    8

    Executive Summary

    • The critical value of scarcity
    • Understanding the utility of the blockchain
    • Will (can?) governments ban cryptocurrencies?
    • A coming geometric explosion in the price of cryptocurrency?

    If you have not yet read Part 1: Understanding The Cryptocurrency Boom available free to all readers, please click here to read it first.

    In Part 1, we surveyed the exciting but confusing speculative boom phase of cryptocurrencies. Here in Part 2, we will contextualize this mad swirl by running it through two filters: scarcity and utility.

    What’s Scarce? Scarcity Creates Value

    Regardless of one’s economic ideology or system, scarcity creates value and abundance destroys value.  When we say supply and demand, we’re really talking about scarcity and abundance and the rise or fall of demand for the commodity, good or service.

    In classical economic theory, scarcity is met with substitution: ground beef too expensive due to relative scarcity? Buy ground turkey instead.

    But this model has weaknesses.  There aren’t always substitutes, or the substitutes are more expensive or problematic than what is now scarce. 

    As a general rule, profits flow to any scarcity of goods and services with high utility value.  We value what’s scarce and useful, and place little value on what’s abundant and of limited utility.

    Currency has three basic functions: a store of value (it will retain its purchasing power over time), means of exchange (we can use it to trade goods and services, pay debts, etc.) and as an accounting mechanism to track assets, debts, income, expenses and exchanges/trades.

    We assume all currency has this function, but only currency that is easily divisible and easily tradable enables easy accounting.  If a notched stick is a unit of currency, and one stick buys a pig, what do I use for purchases smaller than a pig?

    In today’s world, a currency must be….

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  • Blog
    Peak Prosperity

    Money Creation: The Fed – Crash Course Chapter 8

    Creating money out of thin air since 1913...
    by Adam Taggart

    Saturday, August 9, 2014, 12:49 AM

    48

    Chapter 8 of the Crash Course is now publicly available and ready for watching below.

    As a follow-on to the two previous chapters — one explaining the nature of fiat money, the other showing how money is loaned into existence through our fractional reserve banking system — this week's video details the Fed's near-magical ability to create money out of thin air (literally!).

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  • Blog
    Peak Prosperity

    Money Creation: Banks – Crash Course Chapter 7

    Get ready for your mind to be repelled
    by Adam Taggart

    Saturday, August 2, 2014, 1:14 AM

    5

    Chapter 7 of the Crash Course is now publicly available and ready for watching below.

    As a follow-on to the previous chapter explaining the nature of fiat money, this week's video details one of the two methods by which it is created: fractional reserve banking. As John Kenneth Galbraith famously stated "The process by which money is created is so simple the mind is repelled."

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  • Blog
    Ralf Siemieniec/Shutterstock

    What Is Money?: Crash Course Chapter 6

    The world revolves around it, but it's poorly understood
    by Adam Taggart

    Friday, July 25, 2014, 3:52 PM

    11

    Money plays an incredibly large role in the world, but yet it remains poorly understood. What exactly is it? What do the pieces of paper we hold in our wallets and bank accounts actually represent?

    Developing an understanding of the underlying role of money allows us to better see when it is being used properly, or abused. And history shows that abuse is more the norm than the exception: the record shows over 3,800 previous examples of paper currencies that no longer exist.

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  • Blog
    valdis torms/Shutterstock

    The Screaming Fundamentals For Owning Gold

    Updated 2014 edition
    by Chris Martenson

    Friday, April 4, 2014, 1:44 PM

    25

    This report lays out the investment thesis for gold. Silver is mentioned only where necessary, as a separate report of equal scope will be forthcoming on that topic. Various factors lead me to conclude that gold is one investment that you can park for the next ten or twenty years, confident that it will perform well. Timing and logic for both entering and finally exiting gold as an investment are laid out in the full report.

    The punch line is this: Gold (and silver) is not in bubble territory, and its largest gains remain yet to be realized; especially if current monetary, fiscal, and fundamental supply-and-demand trends remain in play.

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