Tag Archives: Banks

But what is Money?


This week on Facebook: I have posted a lot on the subject of money, often referring to Investopedia, the International Monetary Fund, European Central Bank (which is not a ‘central‘ bank at all) and the Encyclopaedia Britannica¹.

  • Investopedia: Everyone uses money.
  • IMF: Money may make the world go around, as the song says.
  • ECB: The nature of money has evolved over time.

Holding the views I do about money and especially ‘the double coincidence of wants‘ problem, I now find myself torn between the notions of commodity money and fiat money. Of course whether or not either money has value ultimately comes back to the double coincidence of wants, this time being set by the Foreign Exchange Market².

The value of a country’s currency depends on whether it is a “free float” or “fixed float”. Free floating currencies are those whose relative value is determined by free market forces, such as supply / demand relationships. A fixed float is where a country’s governing body sets its currency’s relative value to other currencies, often by pegging it to some standard. Free floating currencies include the U.S. Dollar, Japanese Yen and British Pound, while examples of fixed floating currencies include the Chinese Yuan and the Indian Rupee. Foreign Exchange Market

The reasons for a State investing in another State’s money may be quite complex, which raises the question of if China’s wealth is in the free floating USA dollars debt that it owns, or the fixed floating currency of the Yuan. Read more of this post

Inflation!


This week on Facebook: Last Sunday I tried to show the inflationary effect of fiat money that was introduced at Bretton Woods in 1971. While I think it was something that I failed to do successfully, I may have indicated how difficult it is to arrive at a figure for inflation that is not subject to government fiscal policy. Read more of this post

Cassandra on Money & Debt


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Cassandra on the greatest illusion!


¯This week on Facebook: The ascendancy of unconstrained finance has always been a feature of wealth and poverty, exacerbated in 1981 (and since) by the cost of a social welfare programme. With deficit financing used to increase the inevitable shortfall in government budgets and the cost being borne by a fiscal policy that is an increasing burden on the taxpayer already burdened with government financial errors.

The greatest illusion held in the UK and becoming prevalent globally, is that the State will always provide a social welfare programme that mitigates its users from the effects of any austerity.

State prediction of economic growth have not been realised and the general public have, of recent years, mostly been subjected to austerity. This austerity is created by debts encouraged by The City and low incomes encouraged by State fiscal policy.

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Cassandra on debt


This week on Facebook: I can’t think of an answer to a financial dilemma constantly driven by political imperatives and am not so conceited that I would ever try to suggest one¹Regression at my age is a common occurrence and my diffuse dissatisfactions increase day by day, with my belief that the world “is going to hell in a handcart”. On becoming an octogenarian next May what other view would I hold! Perhaps my interest in history is an expression of that regression. I constantly regard events as being a case of “one step forward two steps back” and history replete with stories of debt.  Read more of this post

Cassandra on Money & Debt


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Trouble in Paradise?


This week on Facebook: Blissful ignorance, Tax Havens and the Paradise Papers —

To each his suff’rings: all are men,
         Condemn’d alike to groan,
The tender for another’s pain;
         Th’ unfeeling for his own.
Yet ah! why should they know their fate?
Since sorrow never comes too late,
         And happiness too swiftly flies.
Thought would destroy their paradise.
No more; where ignorance is bliss,
       ‘Tis folly to be wise.

Thomas Gray —Ode on a Distant Prospect of Eton College

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Cryptocurrency as fiat


This week on Facebook:   When I wrote Monday’s article in 2011 about fiat money I never had in mind the cryptocurrency in last week’s post, although I was certainly aware that the ravages created by the inflationary effects of fiat money did not protect wealth. Wealth protection only comes to those with the means of investing in things whose rarity increased their value. The rise in the value of cryptocurrency, particularly as a wealth protector (like that of gold), shouldn’t really have come as the surprise it did.  Read more of this post

The rising cryptocurrency


This week on Facebook: My attention was caught yet again by shills offering fantastic returns on a financial investment. It could be harsh perhaps to use the definition of a shill as, an accomplice of a confidence trickster or swindler who poses as a genuine customer to entice or encourage others [SOED]. However, it’s implausible the think that a shill is anything other than, a person who pretends to give an impartial endorsement of something in which they themselves have an interest [SOED]. Of course the term shill, when used in this context and especially in a derogatory sense, is sure to raise a lot of resentment, especially when shills are simply responding to the volatility of an economic cycle that is the inevitable result of a fiscal policy adopted by a public administration. In today’s world the euphemism financial crisis is used to disguise actions taken by the public administration that exacerbate the economic cycle and inevitably fail to provide a stable economy. Read more of this post

Men in Black


Sir James Faulkner QC regarded juries with disdain, thinking the uneducated hoi-palloi who now sat on them as being incapable of grasping the finer points of common law and particularly those involving finance and economics. Nevertheless, he had just delivered what he considered to be a flawless case for the prosecution. His innate hubris convincing him that the lucid presentation and eloquence of his delivery must surely have convinced even the simplest mind on the jury of the defendant’s guilt. Sitting down he brushed the front of his gown, a preening habit he had developed since taking the silk, smiling self assuredly whilst nodding to The Honourable Mr Justice Pettigrew, confident that he had impressed the judge. In his own mind at least, the outcome of the trial in his favour was assured.

Aware that the jury shared his ennui after having endured such a marathon delivery Mr Justice Pettigrew looked at the pocket watch that he always placed on the bench before him, relieved that it indicated a suitable time for him to call an adjournment until the following morning.
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Martin Widlake's Yet Another Oracle Blog

Oracle performance, Oracle statistics and VLDBs

The Land Is Ours

a Landrights campaign for Britain

The Bulletin

This site was created for members and friends of My Telegraph blog site, but anyone is welcome to comment, and thereafter apply to become an author.

TCWG Short Stories

Join our monthly competition and share story ideas...

The Real Economy

Blogs and stuff from Ed Conway

Public Law for Everyone

Professor Mark Elliott

Bleda

Am I my Brothers keeper?

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