In the modern banking system money is created through lending. For every dollar in existence there is a corresponding amount owed.[1] By and large, in the commercial banking system S≠I, no money is transferred from savers to investors. One way to describe this phenomenon is that banks print money out of thin air. That may […]
Continue ReadingCurrency, Carry and Entropy
Things ain’t what they used to be or How currencies are not stores of value. One of the standard attributes that money is claimed to have is that it acts as a store of value. “Store of value” tells you that it is the current holder’s intent to keep the currency for a while before […]
Continue ReadingExamining the Crypt in Crypto
Crypto currency appears to be a new development and a step beyond traditional banking as we know it. However, when you take a closer look it will be clear that this is not the case. In fact, crypto currency is in a way a full circle back to the day of gold and silver coins. […]
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