Money and Banking

As FDR’s gold crackdown showed, tyrants know the importance of controlling money in a time of crisis. It appears cryptocurrency could be central banks' next target. 

Opponents of bitcoin now claim that bitcoin mining causes global warming and is an environmental threat. But the boom-bust cycles caused by central banks and their fiat money are far worse than any carbon footprint bitcoin can produce.

"Because there's so much debt today relative to 10, 15 years ago, a small debt, a small move in yields, 50 basis points in yields today is equivalent to 2% 15 years ago."

On the one hand, the “no intrinsic value” skeptics are ignoring how Austrians deal with gold, while on the other hand, the “HODL forever” enthusiasts would never allow Bitcoin to become a money.

America is plagued by mountains of debt, cheap money, and an out-of-control central bank. But the situation with the European Central Bank is even more dangerous. 

There is much talk these days about Fed "transparency" easing the effects of monetary policy. But it is not possible to deflate the present gigantic monetary bubble without a severe economic bust, and a policy of transparency employed by the Fed cannot prevent the inevitable bust.

"Because there's so much debt today relative to 10, 15 years ago, a small debt, a small move in yields, 50 basis points in yields today is equivalent to 2% 15 years ago."

Trouble emerges once banks start to engage in lending unbacked by real savings, this gives rise to the expansion of credit out of “thin air.”  This in turn sets in motion the menace of the boom-bust cycle.

The financial press gives us the what, when we need the how and why. Economic journalism needs a reset.

China was one of the first countries to develop a metallic money that was valued and exchanged by weight. Evidence suggests that this monetary regime originated during the Shang Dynasty (1766–1122 BC).