In the meanwhile, China is buying up the world’s gold reserve as they are vying to become the international currency for trade, replacing the fiat dollar which is backed by nothing and is essentially a worthless piece of paper. In the following video, Jim Self explains how the collapse of...
It left numerous opportunities. And, while some banks like Citibank never really recovered from their disaster, ladder-buying other “too big to fails” did end up becoming quite profitable. We became debt holders of General Motors (GM), which made us equity holders of the new company, and ...
It is important to note and understand that Negative interest rates were proposed by the Federal Reserve in 2016 to jump-start the US economy. It was believed that forcing lenders to pay borrowers for taking out loans would encourage spending, saving, and investment in the long run. As part...
They’re doing what they always did, only up to eleventy now, and out in the open. And they don’t know why we’re all going “whoa, now!” And it’s going to keep happening. Trump started it, but at this point it’s a perpetual motion machine. The masks just keep falling. T...
The economic impact from quantitative easing (QE) may be much less than assumed by the Federal Reserve. One focus is on the effectiveness of QE to stabilize a failing banking system, and the judgment here is largely positive. A second focus, especially in the US, is on evaluating subsequent...
This year I resolved to do the usual things: lose weight; step up the exercise; no more eating potato chips (I even did the farewell ritual recommended by certain therapists: “I love you very much, fried salty things, but I can’t have you in my life anymore”). I did, however,...
What year did Ansett collapse? What is digital currency? What are Federal Reserve notes? What does a cashless society mean? What is economies of scale in banking? Who benefits from a strong dollar? What is the U.S. dollar backed by? What is the difference between a depression and recessio...
We did so because we believed it represented a pragmatic way to address the very problems that were transfix- ing the world. After just a year, it is clear that our belief was correct. The idea of "smarter systems" is resonating with decision-makers in both the private and public sectors...
Trade deficits can also occur because a country is a highly desirable destination for foreign investment. For example, theU.S. dollar's statusas the world's reserve currency creates a strong demand for U.S. dollars. Foreigners must sell goods to Americans to obtain dollars. The stability of ...
Inflation is the term used to describe thedrop of a currency's purchasing powerover time. As such, one unit of currency buys less than it did before inflationary pressures hit the economy.Unemploymentis the situation that economists refer to when the number of jobless people who ...