What are the preconditions necessary for a FedCoin and why are they coming to the fore now? What will happen to banks and could the Fed be the lender of first and only resort?
U.S. Federal Reserve notes are backed by nothing but faith and credit. Since they do not represent anything tangible, such as a particular quantity of gold or silver, they can be issued in unlimited quantities.
This week, we had a reminder that the “Artificial” part may need more attention. AI-generated images of a large explosion at the Pentagon spread online and caused a brief stock market dip.
So, the default scare is bringing trouble, no matter what, because our leaders are acting recklessly when so many pieces are ready to fall. Brinksmanship with the debt or even constant threats..
Economists from the Moneterist School to popular writer Thomas Piketty have all attempted to use equations to predict economic outcomes. Here is the only macro equation that you need to understand what’s happening now.
We are in the midst of a system bank run, which are in the greater sense really a bank run on the United States of America, the issuer of the reserve currency of the world.
Unlike debt-based fiat currency, gold isn’t an IOU. It doesn’t have an issuer and cannot be issued in whatever quantity is convenient for debtors. It is honest money.
We’ve seen enormous technological change in the last 70 years. The next 50 years will bring several multiples of it. Some will surprise us—technologies so revolutionary we can’t presently imagine them.
