Warren mosler bitcoin wallet
Table of Contents: Masthead Sticky. Modern Monetary Theory MMT is an economic theory that suggests that the government could simply create more money without consequence as it's the issuer of the currency, according to the Federal Reserve Bank of Richmond. As part of this theory, the thinking is that government deficits and national debt don't matter nearly as much as we think they do. Instead of relying on tax revenue or borrowing to support federal government spending, according to MMT supporters, the government can simply create more money instead.
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Monetär ekonomi
The global monetary system is headed for a crisis, says James Rickards — and gold is going to skyrocket. Octavian Report: Could you take us through what you see happening to the monetary system? James Rickards: The dollar, the yen, the euro — all are forms of money. I would say gold is a form of money. Bitcoin is a form of money. In times past, feathers and clam shells have been money.
One of the criticisms of many modern forms of money, of central bank money and Bitcoin in particular, is that they are not backed by anything. It functions as money. When I talk about the collapse of the international monetary system, people think I must be an apocalyptic doom-and-gloomer. I say no, not at all. When it happens, the major trading financial powers get together, sit around a table, and rewrite what they call the rules of the game.
That is, what will it look like after the next Bretton Woods, or the next Smithsonian agreement, or for that matter Genoa in ? The next time the powers sit around the table, what deal will they come up with?
Then I work backwards from that to today, and ask: what can I or should I do with my portfolio now to prepare for this new deal? Now, I have the view that basically all the central-bank models, all the risk-management models used on Wall Street and in capital markets around the world are obsolete. There are much better tools available today. The three that I use most frequently — not the only three — are complexity theory, behavioral psychology, and causal inference. One, in complex systems — and I would make the case that capital markets are complex systems nonpareil — the worst thing that you can have happen is an exponential function of scale.
Morgan tripled the gross notional value of its derivatives. Dimon, you tripled your balance sheet. How much did the risk go up?
The longs offset the shorts. You net it down, the actual risk is quite small relative to the gross notional value. We tripled the balance sheet, but the risk went up a little bit.
The correct answer is if you triple the scale of the system, you increase the risk by a factor of 10 or , some X-factor based on the slope of the curve, which is a power curve.
You go back to what did we hear about? Too big to fail, too big to fail, too big to fail. Today, the five largest banks in the United States are bigger than they were in They have a larger percentage of all the banking assets, and their derivative books are much bigger. Everything that was too big to fail in is much bigger today.
Given the exponential function I just described, the risk is exponentially greater than Whatever you saw in , get ready.
A much bigger collapse is coming. Probably sooner than later. I was general counsel of Long-Term Capital Management. I negotiated their bailout, so I had a front row seat for that. I was on the phone with the heads of the major banks. I basically negotiated that bailout and saw exactly how close the global system came to complete collapse. We were hours away from shutting every stock and bond exchange in the world. Literally hours away, and the bailout got done.
Four billion dollars changed hands. The balance sheet was supported. A press release was issued and the crisis passed. But it was extremely close, and not a foregone conclusion at all that we could get that done. Nobody likes to lose their own money, so there must be something wrong with the theory.
I spent the next 10 years working on this, about five years figuring out what was wrong, where the flaws were, and another five years figuring out what actually works to remedy them. I refined my models enough that in and I was warning people that a collapse was coming again. That it would be worse. It was sufficient to say that the collapse was coming because none of the lessons of had been learned. In , Wall Street bailed out a hedge fund to save the world.
In , central banks bailed out Wall Street to save the world. Each bailout gets bigger than the one before. Each collapse is bigger than the one before, which is exactly what complexity theory would forecast based on the scaling metrics and the dynamics I described.
So who bails out the central banks? What are they going to do in the next crisis? What is the outer boundary of how much money they can actually print? Legally, there is no boundary. At some point, however, you cross this intangible, invisible confidence boundary that I described earlier — and that goes back to the original problem of confidence in any form of money.
And all the other central banks are in the same situation. They can print world money, which are the special drawing rights or SDRs. Will that work? Make sure you never miss the latest from the Octavian Report. Enter your name and email below to subscribe to our newsletter. Why should I have any more confidence in IMF money?
He did in and he did in Churchill ignored him and threw the U. So question is: what is the implied non-deflationary price of gold today? Gold is going to shoot much higher. In the SDR scenario it will shoot much higher because of inflation, and in the gold-standard scenario it will shoot much higher because it has to, to avoid deflation. The dollar price of gold is just the inverse of the value of the dollar.
OR: Why do you say gold has to be part of a new system? Rickards: The flaw in that — and I think this is one of the biggest problems today, and certainly an issue with everyone from Milton Friedman to Janet Yellen — is that they take confidence for granted. But there are some more thoughtful people out there, among whom I would include Stephanie Kelton, Warren Mosler, Richard Duncan, and others.
They call themselves modern monetary theorists. You get too much deflation? Print more money. Print more. The government can spend. Maybe you cannot force people to spend it, but the government loves to spend money, they know how to do that really well. If it increases the deficit, so what?
The whole thing just goes away. At which point, your only two remedies are SDRs and gold. Rickards: With regard to central banks and gold, I always say watch what they do, not what they say.
If the U. Why are we hanging onto it? The question answers itself. Obviously, it has some value. Obviously, it has some role in the monetary system. I had been working on a thesis that the Fed is, at least on occasion, insolvent. Even Long-Term Capital Management was never leveraged more than 20 to one, and we were very aggressive about leverage.
Now, just to be clear, the Fed does not mark its value sheet to market. My thought experiment is: what if they did? Doing that, I discovered that they were in fact insolvent at various times along the way.
I had this conversation with several Fed officials. One member of the board of governors, another individual who was not a member of the board, but a very, very close advisor to Bernanke and Yellen, a true insider, a Ph. I was able to have this conversation with him.
Regardless of bond-market moves. I went back to the balance sheet to see what I was missing. Now, as I was doing this I noticed a couple things.
Best Sellers in Money & Monetary Policy (English)
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The Big Blockchain Lie
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Welcome to Activist MMT. A podcast about real-world economics including Modern Money Theory, and how life changes when you discover it. Feb 06 55 mins RSS feed Share Share.
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Modern Money Theory pp Cite as. We have argued that taxes drive currency. Sovereign government does not need taxes for revenue, but to create a demand for its currency. With that in mind, we need to rethink tax policy. How best to drive the currency?
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RELATED VIDEO: Warren Mosler on MMT, CBDC, bitcoin, bonds, interest rates, inflation, taxes and unemployment.The global monetary system is headed for a crisis, says James Rickards — and gold is going to skyrocket. Octavian Report: Could you take us through what you see happening to the monetary system? James Rickards: The dollar, the yen, the euro — all are forms of money. I would say gold is a form of money. Bitcoin is a form of money.
I've discovered a number of reasons for the federal government to tax. Not in any order. The first thing people think of is that, given MMT, we can have the federal government do whatever we want. What's to stop them. The answer is inflation.
The virtual currency craze is on a tear, with new virtual currencies emerging every day. The New York Times just ran a series of articles about them last week. There are three components to this system:. This new page refers to all past transactions requests by referring to the immediate previous block and records all the new transactions requests.
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