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Interesting article by William Softky thanks. Yes, it is about trust and for a long time we have learned to trust some bits of paper, or now electronic transfers of money, that passes for currency, backed up by next to nothing.
Crypto hasn't been around for long enough for general trust to be built up, but I don't agree that it is "Scarily Untrustworthy". Time will tell.
Also there seems to be confusion between crypto itself and crypto exchanges. Exchanges have been used for fraudulent purposes. That, in itself, doesn't make crypto fraudulent, just very different.
Good argument Greg, thank you. I hadn't differentiated the exchanges from crypto itself. Interesting speculation here, especially as the markets melt down this week, but actually merely adjusting to the new normal, leaving the hype behind, I hope.
Hi Greg, 97% of Western currency originates in bank loans which have collateral real assets as backing. So so called "fiat currencies" are "backed" by the value of those real assets ( mostly houses, factories, commercial and industrial). Only 3 % is originated as physical cash. That is "backed" by the Sovereign. Cash is a non interest bearing recallable loan to the people.
Thanks. I struggle to get to grips with Fiat currencies, QE and the fact that they are backed by the value of real assets. I've read books on the subject but something just doesn't ring true to me. My problem, I'm sure.
The term "Fiat currencies" is meaningless. Currencies always require general societal acceptance. Money is a currency when it flows. It's like water. Sometimes it flows, sometimes it doesn't. Money is always a contractual agreement. It originates in two forms --Credit Money (bank loan created) and Physical Cash (Treasury Mint created). Simple. Yet hard to grasp.
Nabiullina makes a very clear distinction between crypto and national currencies. I hope our central bank takes note and stops the initiatives regarding CBDCs (Central Bank Digital Currencies).
Not fun fact: tariffs are subject to sales tax in the USA, so Americans are losing even more money. Discretionary spending will collapse in this consumer economy.
reciprocal
Excellent assessment as usual Gerry. This might put crypto into perspective:
https://www.fairobserver.com/business/the-truth-about-crypto-it-is-scarily-untrustworthy/
I think the Russians are probably right on crypto, as is so often the case. But then, I am prejudiced being of the same Rus tribe! LOL
Interesting article by William Softky thanks. Yes, it is about trust and for a long time we have learned to trust some bits of paper, or now electronic transfers of money, that passes for currency, backed up by next to nothing.
Crypto hasn't been around for long enough for general trust to be built up, but I don't agree that it is "Scarily Untrustworthy". Time will tell.
Also there seems to be confusion between crypto itself and crypto exchanges. Exchanges have been used for fraudulent purposes. That, in itself, doesn't make crypto fraudulent, just very different.
We live in 'interesting' times.
Good argument Greg, thank you. I hadn't differentiated the exchanges from crypto itself. Interesting speculation here, especially as the markets melt down this week, but actually merely adjusting to the new normal, leaving the hype behind, I hope.
Go well dear friend as UK hits the buffers.
AP
Hi Greg, 97% of Western currency originates in bank loans which have collateral real assets as backing. So so called "fiat currencies" are "backed" by the value of those real assets ( mostly houses, factories, commercial and industrial). Only 3 % is originated as physical cash. That is "backed" by the Sovereign. Cash is a non interest bearing recallable loan to the people.
Thanks. I struggle to get to grips with Fiat currencies, QE and the fact that they are backed by the value of real assets. I've read books on the subject but something just doesn't ring true to me. My problem, I'm sure.
The term "Fiat currencies" is meaningless. Currencies always require general societal acceptance. Money is a currency when it flows. It's like water. Sometimes it flows, sometimes it doesn't. Money is always a contractual agreement. It originates in two forms --Credit Money (bank loan created) and Physical Cash (Treasury Mint created). Simple. Yet hard to grasp.
Nabiullina makes a very clear distinction between crypto and national currencies. I hope our central bank takes note and stops the initiatives regarding CBDCs (Central Bank Digital Currencies).
Not fun fact: tariffs are subject to sales tax in the USA, so Americans are losing even more money. Discretionary spending will collapse in this consumer economy.
Hmmm looking like this article if full of 💩
Flip flopping Trump , Trump 2 = Obama 2.
https://grubstreetinexile.substack.com/p/flip-flop-to-the-golden-turd?r=l1oox