OK. So you go to the 1st Bank of Bankertown or whatever. You deposit a check. Take a little cash out. But you wake the next day to find – surprise – the 1st Bank of Bankertown isn’t actually a bank at all. Granted some would argue that banks aren’t really “banks” at all anyway in the Fed system. But you get the point.
In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
As I watch the calamity in Greece and the chaos in China I am struck by how much things have changed in 10 years. “Wealth” looks very different to many people these days.
Wealth is time with one’s family. Wealth is time to think. Wealth is a good roof over one’s head. Wealth is good food and good friends. Wealth is walking through a field first thing in the morning with few bills to worry about. Wealth is swimming in the ocean and catching flounder in the surf. Wealth is peace of mind.
Be thankful you aren’t an unskilled worker in Athens or a newly middle class manager in Shenzen who has leveraged his home to play the stock market. Be thankful that you are not feeling the hottest of the world’s economic flames. At the same time be aware that fires do spread.
This bill is probably a step in the right direction, but the focus should be first on auditing the Fed under a bright burning magnesium fueled light. We need to know what’s really going on in the institution before we can chart the best way forward. Open the beast up. Let’s see what happened in 2008/2009 and during the QE binge. Then we can tinker, or hack away, or blow up as needed.
It should be noted that Senator Warren, who is co-sponsoring this legislation in the Senate with Senator Vitter, opposes an audit of the Fed.
Iceland stands like a sentinel at the gates of the Arctic and astride the Mid-Atlantic rift. Part of Scandinavia but also the last stone hop to North America it is a place which breeds peculiarity. With a population of under 330,000, less than the population of Wichita, Kansas, this peculiarity is compounded. Throw in month long winter nights and communal hot spring spas and one can understand why the tiny country produces such weird (and often interesting) furniture, music, and economic ideas.
Attached Ash Navabi at the Mises Institute examines one of Iceland’s most recent idea exports, sovereign money.
This is a big deal and reflects the profound lack of confidence the world has with the current global banking regime. That Britain would do this, in spite of our general objection, is very significant.
As we have said in the past, an important thing to watch for is the moment the dollar is no longer the “world reserve currency.” When that happens the game fundamentally changes. We can’t print forever any longer and the reality of the market hits. We are still far from that point, but Britain joining the Asian Infrastructure Investment Bank certainly is a solid move toward a post-dollar reserve currency world.
But remember Denmark is the happiest place in the world. (sic)
This is some radical stuff.
If you remember the post we recently did about the “new serfs,” well, below is a good example of this reality.
It is an idea that is popular in at least 4 states.
The bloom has come off Piketty’s socialist rose that’s for sure. Once the free marketeers peered into the French economist’s book, the arguments, particularly the central one, that capital snowballs forever with the rich forever getting richer, has fallen apart under scrutiny.
The bankers truly, deeply fear Bitcoin. Again, I say this not as an advocate. I prefer the old gold and silver. But I love, I mean love that Bitcoin is tying the establishment in knots. It is super fun to watch. Read, please read, the attached article as the author waxes on and on about how only white males like Bitcoin anyway so it should be taken down.
Now if one is a is moving billions through HSBC for drug cartels the government says it’s too difficult to prosecute. A local grocery store which has done absolutely nothing wrong? Much easier to take from.
China is coming to grips with economic reality increasingly. The numbers coming out of the PRC, long suspect, are now widely regarded as being very optimistic. China may be going through its first recession in 30 years, but we don’t know because the data is dung.
And you thought we had the fattest banking cats. Not so.