Economics

Mr. Pozsar, originally from Hungary, was an advisor to the US Treasury for a number of years, then worked for the New York Federal Reserve Bank where he was deeply involved in the response to the mess known as “2008” or the “Global Financial Crisis.”...

The London Inventory Change Staff — the main British monetary markets infrastructure manager — has announced that they have acquired a company called TORA. The exchange paid $325 million for the acquisition, which will help them gain traction in the crypto space. Benefits of the...

In today’s world, hedge funds are investment vehicles designed to capture high yield returns. Investment banks, retirement funds, and companies that need to leverage profit, while still managing risk, turn to hedge funds to get the job done. Hedge Funds have recently Tipped Their Bullish...

Recently, the crisis spooked some protestors who gathered outside the company's headquarters, eager to find out about its future. Many investors are becoming increasingly nervous that if Evergrande were to collapse, it would cause a contagion across China's banking and property sectors. An Evergrande downfall...

What is Dollar Cost Averaging (DCA)?Dollar-cost averaging, also known as the constant dollar plan, is an investment strategy for building savings and wealth over a long period. It achieves this goal through systematic investing, where users allocate equal amounts of money for purchasing an asset...

Central bank digital currencies (CBDCs) are taking shape globally, and Europe is at the front line to ensure that a digital euro will succeed if it is ever rolled out to the public. On December 8, the Banque de France (BdF), the Swiss National Bank...

Japan Joins the U.S. to Regulate StablecoinsAccording to Nikkei Asia, the FSA is planning to Propose the legislation in 2022, which would see only banks and wire transfer firms issue stablecoins. The report noted that the FSA was restricting stablecoin issuance as a means to...

Possible Digital Asset Exchange in BeijingAccording to a Bloomberg report, part of the guidelines by the State Council could see the creation of a virtual asset exchange in Beijing, the Chinese capital. The idea is part of the plans to push the usage of the...

Since the civilizations of Ancient Greece and the Roman Empire, the ruling elites, have been ruthlessly exploiting all walks of society. At times, this exploitation became overt by exerting power over simple people in the open, with human slavery being the most outrageous and egregious...

Concerns Around a Crypto Market CrashOn 13 October 2021, The Guardian published this article in which Jon Cunliffe calls for tough regulations of cryptocurrencies and likens the danger that we might face to that of the 2008 financial crash. He says that digital currencies could...

Turkey’s Failing EconomyIt is not uncommon for countries with a history of high inflation to have a low savings rate, there are two main reasons for this. Firstly, what's the point in saving money if it's going to be worthless in the future? Secondly, if...

The Global Economy TodayWhen you hear economists talk about hyperinflation, you generally think about Weimar Germany and how the worthless Reichsmark was more valuable as wallpaper or kindling than as a medium of exchange. You might also think of the hyperinflation that wreaked havoc on...

So, without further ado, let’s look at why money emerged – and the three main functions it performs today. Money as it Functions Today If we distill the reasons behind the evolution of money into a single idea, we will see that it was driven...

How Stimulus is Used A recent BoA survey has shown, about a third of Americans would use the third $1400 stimulus check to clear debts, buy food and other necessities or pay the mortgage. About 9%, though, were planning to invest their stimulus money into...

The First Currencies The objects our ancestors used for bartering had tangible value: one could milk a cow or preserve its meat to survive the winter, plant the grain, or use the sword in battle. However, as they switched to the first forms of money,...

Of course, everybody knows that traditional finance is not just going to give up. Banks that are making massive amounts of money from transactions, loans, and other services that they offer will not just give up and shut down because a more convenient, faster, cheaper,...

Rise of Mobile Banking This is why mobile money has been booming in the region. Indeed, services like M-Pesa in Kenya, Wizzit in South Africa, or Celpay in Zambia are flourishing here like probably nowhere else in the world. In 2020, there were 548 million...

Given the global economic crisis at the time, I believe that Nakamoto had a disdain for the traditional finance system and did not trust fractional reserve banking. He even wrote a memorable post later on where his message was clear. “Banks must be trusted to...