Posts filed under “Currency”

The Collective Delusion that is Bitcoin (and All Currencies)

When I first stated traveling for work, I was surprised and amused by the various currencies I saw. Pre-euro, one would encounter a multitude of paper bills of different sizes and colors, each imprinted with a famous man or woman I probably hadn’t heard of.

Imagine that: The locals actually believed these silly pieces of colored paper had value. Sure, paper currency worked as a medium of exchange, and it allowed you to buy goods and services within that society. But how far off was it to observe that this shared belief system was little more than a collective delusion? Take the paper to another land that didn’t share that belief system — they had their own, different delusion — and the paper seemed to be worthless.

That is the simplified version of paper currencies. The real world is obviously more complex. Banks exist, and foreign delusions (currencies if you will) can be exchanged for a fee for the local paper delusion. There is also a nation behind the “worthless” paper, with a standing army, the power to tax and an enormous enforcement mechanism. Perhaps that is the authority that makes our collective delusion seem to be somewhat less deluded.

This brings me to the digital currency, Bitcoin.

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Category: Currency, Psychology

Money, Liquidity and Welfare

Category: Currency, Federal Reserve, Think Tank

European Debt Crisis: Visualized

Bloomberg’s ace data visualization team crushes it again; this is an awesome primer:

At the heart of the European debt crisis is the euro, the currency that ties together 17 countries in an intimate manner. So when one country teeters on the brink of financial collapse, the entire continent is at risk. How did such a flawed system come to be? Bloomberg Television and Jonathan Jarvis present “The European Debt Crisis Visualized.”


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Source: Bloomberg, Feb. 12 2014

Category: Credit, Currency, Digital Media, Video

Socialism, Capitalism and Bitcoin

Source: Climateer Investing

Category: Currency, Humor

WSJ: Investors Look Toward Safer Options

Source: WSJ

Category: Currency, Markets

Category: Currency, Think Tank

The Currency Printing Process

Source: Ink Splash

Category: Currency

Category: Currency, Think Tank

Has the Dollar Really Lost 97% of Its Value? (No)

  One of the favorite tropes of the “End the Fed” crowd is the “falling purchasing power of the U.S. dollar.” Google that phrase, and you will be rewarded with 91,100,000 results. (drop the “U.S.” and it doubles to 187,000,000 results). The problem is, nearly all of these arguments are wrong. As Matt Busigin of…Read More

Category: Currency, Data Analysis, Really, really bad calls

2010 Reminder: QE = Currency Debasement and Inflation

One of my biggest complaints about the media is the lack of accountability. People say things on TV in print an on radio, and then . . .  Poof!  No consequences. They influence public perception of issues, affect policy debates, drive legislation. This is a perfect example of a stern warning of currency debasement and…Read More

Category: Currency, Inflation, Really, really bad calls