If you’ve ever wondered why the world seems hopelessly fraught with endless conflict, ruled corrupt states, and bent on developing a never-ending supply of advanced weaponry, you’d need to understand the nature of our debt based economy.
Bitcoin should not be incorporated into the existing system of central banks. Problem of Central Banks is not only a fact that they are centralized. Bigger problem is that they consider money as a capital ‘per se’. The role of Bitcoin has to become a new standard of value, and as such to become an alternative to the current financial gambling system.
The Bank for International Settlements (BIS) is a treaty organization that is not under the jurisdiction of any government. The BIS operates as a kind of central bank of central banks that settles international imbalances caused by uneven international trade.1
Friedman, whose monetary economic theories heavily influenced Greenspan, was concerned about the stifled nature of the debate on why Federal Reserve Bank engaged almost 500 prestiges Economists. Milton Friedman, in a 1993 letter to Auerbach that the author quotes in his book, argued that the Fed practice was harming objectivity: “I cannot disagree with you that having something like 500 economists is extremely unhealthy. As you say, it is not conducive to independent, objective research. You and I know there has been censorship of the material published. Equally important, the location of the economists in the Federal Reserve has had a significant influence on the kind of research they do, biasing that research toward noncontroversial technical papers on method as opposed to substantive papers on policy and results,” Friedman wrote.2
Ljiljana Tatic
Nicosia, 13.07.2016.
All of the World’s Money and Markets in One Visualization How much money exists in the world? Strangely enough, there are multiple answers to this question, and the amount of money that exists changes depending on how we define it. The more abstract definition of money we use, the higher the number is. In this data visualization of the world’s total money supply, we wanted to not only compare the different definitions of money, but to also show powerful context for this information. That’s why we’ve also added in recognizable benchmarks such as the wealth of the richest people in the world, the market capitalizations of the largest publicly-traded companies, the value of all stock markets, and the total of all global debt. The end result is a hierarchy of information that ranges from some of the smallest markets (Bitcoin = $5 billion, Silver above-ground stock = $14 billion) to the world’s largest markets (Derivatives on a notional contract basis = somewhere in the range of $630 trillion to $1.2 quadrillion). In between those benchmarks is the total of the world’s money, depending on how it is defined. This includes the global supply of all coinage and banknotes ($5 trillion), the above-ground gold supply ($7.8 trillion), the narrow money supply ($28.6 trillion), and the broad money supply ($80.9 trillion). All figures are in the equivalent of US dollars.
If all cash money will be replaced with crypto currency, and even if Central Bank lose its clearinghouse monopoly and bitcoin is spread everywhere, the CB can still exert itself over the economy because it issues the one special asset that defines the unit of account: reserves. Central Bank monetary policy can still exist in a world without central bank money.
While bitcoin could one day shut down most of the roles that the Central Bank plays, the monetary policy will most probably stay intact. The reason for this is that the no matter what happens to all its other functions, the Central Bank will continue to define the economy’s unit of account.
Small minorities of transactions are made with bitcoin so far. Most of these transactions are rarely priced in terms of bitcoin. Rather, a merchant’s website typically display prices in terms of dollars, and then compute the amount of bitcoin that a customer must fork over by referring to the current dollar-to- bitcoin exchange rate. The dollar is very much the unit of account in the US, not bitcoin. In Europe even less.
Fresh divisions have erupted between the Oireachtas banking inquiry and the European Central Bank (ECB) over its refusal to answer to the committee.
Correspondence published on Wednesday on the ECB website shows its vice-president Vítor Constâncio has withdrawn his offer to attend an “informal exchange of views” with the inquiry regarding the crash.
The ECB resolved in February to allow Mr Constâncio to make an Oireachtas committee appearance but only if it took place outside the inquiry process. In a letter on July 23rd to Independent MEP Marian Harkin, ECB chief Mario Draghi blamed remarks by inquiry chairman Ciarán Lynch for Mr Constâncio’s refusal to appear.
via Banking inquiry: ECB withdraws offer of an ‘informal exchange’.
But most importantly, even back then we explicitly said that in order for Greece to preserve its leverage (something it found out the hard way it did not have 6 months later), it would need a Plan B, one that involves an alternative source of funds, i.e., Russia and/or China, which could be the source of the much needed interim cash Greece needs as it prints its own currency and prepares for life outside the European prison.
“In Shanghai, close to five tonnes of gold was sold on the Shanghai Gold Exchange in a two-minute window just prior to 9:30am, in a market where the normal volume traded is 25 tonnes in an entire day,” ANZ Bank analyst Victor Thianpiriya told Business Insider.
He added that “further downside risks remain,” and that “other indicators also suggest the likelihood of an immediate rebound is low.”
New forms of ownership, new forms of lending, new legal contracts: a whole business subculture has emerged over the past 10 years, which the media has dubbed the “sharing economy”. Buzzwords such as the “commons” and “peer-production” are thrown around, but few have bothered to ask what this development means for capitalism itself.
It’s astonishing even now how blithely top European officials dismissed warnings that slashing government spending and raising taxes would cause deep recessions, how they insisted that all would be well because fiscal discipline would inspire confidence. (It didn’t.) The truth is that trying to deal with large debts through austerity alone — in particular, while simultaneously pursuing a hard-money policy — has never worked. It didn’t work for Britain after World War I, despite immense sacrifices; why would anyone expect it to work for Greece?
What should Europe do now? There are no good answers — but the reason there are no good answers is because the euro has turned into a Roach Motel, a trap that’s hard to escape. If Greece still had its own currency, the case for devaluing that currency, improving Greek competitiveness and ending deflation, would be overwhelming. via Europe’s Impossible Dream – The New York Times.
Under rules coming into force on July 1, 2016, the average risk weight on residential mortgage exposures will rise to at least 25 percent from about 16 percent, the Australian Prudential Regulation Authority said in a statement. That will increase the capital requirements of the biggest four banks by about A$12 billion ($8.9 billion), according to Goldman Sachs Group Inc. and Morgan Stanley.via Australia’s Banks to Hold More Capital for Mortgage Losses – Bloomberg Business.
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