emil's ending observations on the compatibility with hard money and democracies was pretty spot on. "scarce" currencies like gold will always lead to a type of feudalism. the irony being 99% of gold bugs will never be a land owning aristocrat or business owner, but instead be a peasant paid in whiskey and cabbage
Emil and Jeff- have been watching you for over a year and admired your thoughts but found them detached from what I was seeing. But your interview here- thank you Blockworks!- helped to crystallize and clarify what you have been saying all this while. Yes, it’s counter-intuitive, but there were things said here that all your prior chat didn’t so explicitly say. Very happy to finally get over the hump.
Fantastic video. Emil and Jeff absolute studs as usual, but it was refreshing to see a host who seemed to “get it” and was able to ask good and relevant questions. We’ll done, gentlemen!
@50:30 John Nash wrote an interesting paper about a money system where an elastic supply national money is floated against a fixed supply money and over time asymptotically approaching parity. Not too unlike gold standard, but a free market solution which required a solution to the re-adjustment problems that make gold or bancor-style systems inefficient. Just saying :)
Hazaa! This was recorded in November 2021 and I only now got around to posting it! I am a bad person. Please check out Mike's podcast and the Blockworks Spectacular Super Show!
You and Jeff might want to check out the article by Tyler Cowen called "The Great Stagnation." It argues that the American economy has reached a technological plateau and the factors that drove economic growth for most of America's history are no longer present.
Coinbase was an absolutely terrible experience. I will never ever again use their miserable services. Strike has been great, zero problems in the last 50 or 60 purchases made.
Once you start manipulating supply and demand it is all over. It's really that simple. It is, trust mathematics, trust the universe. You can't cheat the game, someone will have to pay. The entire system is a game of hot potato and at the end of the day mainstreet is the ones that get screwed... and this is born out time and time again... but eventually once mainstreet is everything else collapses.
If the banks get afraid to loan out ledger money, for fear of being called on it, then they stop making loans, and the money supply, of ledger money, shrinks.
84b Quantitative Easing: A False God th-cam.com/video/tG9XSzWKRto/w-d-xo.html How is it possible 14 years of data shows the Federal Reserve FLAILING ABOUT trying to raise or lower bond yields with MASSIVE purchases of securities via quantitative easing? Because they were 'massive'. The CENTRAL BANK IS NOT CENTRAL to money. The bond market is.
The presumption that people carried gold and silver around every day is false. Most people did not carry money around unless they were going shopping. I believe this began changing when moles came into being as when I was a young girl all stores were closed on a Sunday and the stores in town closed at 6:00. Most stores were only open on a Friday night until 9:00 so that people who couldn't get to do their shopping because they were working had an opportunity to go on Friday night or Saturday.
Too bad the earth isn’t 5 times as large so we could have economic boom times forever! The low hanging fruit (easy energy) is gone… not surprising that as the resource base contracts the wealth starts to concentrate. The banks know that this reality rules and that’s why they are very reluctant to take risk in a structural slowdown.
Great content as always - thank you. Also, can you look at the recent DTCC regs and rules that will drastically effect liquidity and equity market structure?
@@m111ark good question, I think they can only spend them between 1. The fed buying from banks or 2. other banks buying from other banks in a closed system. so it stays as reserves & not new money.
@@ayy2193 I guess I should have said, can bank reserves be used to buy treasury debt from the treasury? That's the question to be answered... because if they can, that's creating money.
One more question about crypto…what about a solar flare that takes down the grid for awhile. This will happen some day… a statistical certainty….paper IOUs representing BTC???!!!
valid point, but it's a known unknown. I'm not a proponent of any of these new things but even btc can handle intermittent outage, both a transaction and long term holding is possible without any digital infrastructure, just matter of remembering/writing down a long sentence/string. if anything, 1-in-100 years flares impact may have more serious impact on other comforts we have grown used to (recently there were no major flares like in middle ages)
When I hear someone confidently proclaim that central banks are necessary, I assume they haven't done their homework on free banking and their credibility drops a helluva lot. If that's your angle all you're doing is shilling for a technicality "Akshually the commercial banks create money"
I was a quarter of the way into this before I realized I'd watched it on Blockworks in November. But it was so good and I needed the refresher so I watched it again. I'm puzzled by the whole idea that Bitcoin is a physical asset equivalent to a precious metal. I see it as another form of "fiat" currency, except the guarantor is public confidence in the block chain ledger system instead of a government. All that has to happen is for somebody, some clever state actor, oh, say, the Chinese intelligence service, to do something, even if it's fake, that shakes that confidence, and the whole thing will implode. I laughed at the bit about the kids of today not being interested in gold. If the spit really hits the fan, they will bloody well get interested in gold like everybody else, because in the end it'll still be the only thing left standing, as attested by 5000 years of history.
It appears to me that there is a great deal of belief in cryptocurrencies. It reminds me of a religion. Many younger people who have been raised knowing nothing but how all powerful technology is/will be and not ever experiencing real hard times hope that Bitcoin will save the world. We are living in incredibly safe abundant times and few people, let alone the young, realise that it could turn very bad very quickly. Gold isn't cool exactly because its old! The young will have to be burned badly before they appreciate the wisdom of their elders. Either that or they are right and gold is just a commodity of the past. I suppose that this is financial evolution of the fittest. Meanwhile for me: gold is the only money, everything else is currency. All the best.
Vivre le Dictatorships !!! Ps, Jeff, even if we have a baby boom in the unforeseeable future, the boom would have to be sustained for many years in order to sustain an economic revival . The negative birth rate we are experiencing world wide is having a catastrophic affect on the global financial structure, and the global market system.
True, but if we actually have sustained (say a decade or more) and significant growth in the economy and across the whole economy, I for one would certainly expect there to be a sustained baby boom. Which in turn would fuel the economy. The reason for the current low birth rate across the developed world is because people are acting rationally given the economic conditions. I view the last two decades or so as a kind of recession in real terms for the bulk of the population.
@@ivancho5854 we are in a recession. We have been since 2008. Only banning the feminist movement( as china just did) and the birth control pill will fix the birth rate . The pill dampens womens desire to have children ( the cessation of ovulation bio chemically tells women that they are pregnant ). The paradox is that kids have to come first, in order to stimulate economic growth,which in turn drives the cost of living down not up.
It's kind of insulting, after Jeff explains clearly why Bitcoin cannot provide all 3 necessary attributes of money because of inelasticity, to have the host restate that he thinks it will be money in the future. I found this to look pretty dumb. How about listening and thinking about what Jeff has said. If he doesn't have an argument against what Jeff has said, why should we be interested in the host's unsupported opinion all over again?
Crypto has a large religious "belief" component. It is no coincidence that most holders are young and religion has waned amongst the young. Just my 2 Bitcoin.
Thanks. Likewise I'm not sure exactly what, but certainly there is appetite for something new. Every dominant player or narrative starts to tread into inventing new money: first gold, then silver, political paper money, petro$, euro$, subprime/derivatives, now digital (tech) ledger currencies. Maybe digital will take hold next and for long, but ultimate finite resource is the environment, so I'd imagine some sustainability/temperature/emissions underpinning with internet ledger based infrastructure. ESG is already affecting other assets too, stocks, bonds. Just like oil (peak oil) and banking (euro$) before, it's about time ESG touches the reserve currency.
Hi again. Can you explain, please, is QE a expantion of money? Is QE finit anytime? Is QE in USA and in Europe become in something not controlable? And if citizen have UBI is inflaction go up? Tks . Rgds
I don't know. The money creation out of thin air has been going on since the 1950s, so we've had three generations of money growth out of thin air and... it seemed like a lot got accomplished until the music stopped in 2008. Hard to say.
Did or did not .1% of people in the USA increase their wealth substantially relative to the rest of the country during the last 2 years? Are you saying the 9 trillion in ledger increases the last 2 years are not due to the 9 trillion in ledger increases and it didn’t go to the .1% therefore lowering the purchasing power of everyone else? Were those 9 trillion in ledger increases not sanctioned by the Federal Reserve (and others)?
I see bitcoin as being useful if yr fleeing over the Alps with the Von Trapps. And it might save your life... but its too volatile so far for less crazy situations. Scarcity in the art market does not give value net works and a community of opinion does. If you buy up and hoard most of a good Artist like Stephenson of Alberta you kill the community of interest and thus market value. Talk to some art dealers ..they ponder these things.
How does margin debt fit into money creation? We all know how money is created by the financial system through credit and that bank reserves aren’t money per se, but primary market players can certainly access them. This makes me wonder if money has been created for that or if they’re mainly funded my repo and reverse repo type if arrangements
Nonsense gold and real diamonds have intrinsic value, BTC just doesn’t, being rare doesn’t give value to something which doesn’t have value in the first place.
Diamond's value is due to the only actual cartel in the world restricting supply & price. It is unknown how scarce gemstone quality stones are, & they only occur in a few mines in the world. People pay high prices for diamonds, believing they are rare, but without actually knowing if that is empirically so.
Sometimes Jeff comes off as arrogant and has a I'm the smartest guy in the world attitude. But I also remember saying that about Muhammad Ali when he proclaimed " I am the greatest ". Turns out he was right too.
Hi :) Crypto 2022, even 2021 is not only bitcoin and dollar-pegged stables. Maybe you and Jeff can take a look at so-called de-fi 2.O? So far as I know Frax Finance, Olympus Dao and Tokemak all start from a realization that fix supply and store of value provided by btc and pegged stables aren't enough for a currency, and also you need something "elastic" to prevent systemic risks.
"What about currencies - are they diluting those signals as well". Yes, in the short term, the banks absolutely manipulate currencies as anyone who has traded forex knows.
@@MrB1923 Gold is infinitely divisible down to the molecule (although at some minimal unit would be so small that it would have to be represented by some kind of small unit proxy). For example: 1oz .1 oz .01 oz .001 oz .0001 oz .00001 oz .000001 oz .0000001 oz etc. Therefore, if a finite supply is a problem with gold, then it should also become a problem with bitcoin.
"Don't fight the Fed" only means, don't make competing currencies. It's what all the wars are about, ya' know. And the reality of equality, is impossible. There has never, and will never, be anything that is equal. Lastly, no currency can be contingent on availability of electricity. A mixed currency model is best.
its funny I owned bitcoin before I understood CB to.., once I understood it I bought more... the I saw what happened in CANADA I semi went all in.. even though I don't see that happening here.. better safe for now than sorry
If you all are correct about no innovation without redoing the money system, how come Tesla is hiring, growing, and thriving with the way it is now? Best paying jobs among auto workers.
So, a bank, or financial institution is willing to lend money to a customer to buy a house. The bank or financial institution doesn't really have that money, they just use a ledger entry in place of it. The home builder gets the electronic credit, and bang, it's real money that they can purchase supplies with, and pay their workers with. Some of the workers might then buy choose to buy a house themselves and get a loan of ledger money from the bank. The money that worker earns with his hard work and uses to pay his mortgage, is really just ledger money. No green backs need to have ever existed.
AH! If the ECB, the bank of Japan and the Federal reserve are not central banks, than what are they? They are ... Smoke and mirrors. Just like on Lost it's a big "red herring."
Interviewer: Gold and fixed money didn’t work out well so why would Bitcoin work now? That’s where I am now but I have *complete* faith in Bitcoin. You just asked yourself the most important question about what money needs to be and then… dismissed it.
Emil: “…banks created money out of thin air and what sustained it? Confidence.” So what sustain confidence in the value of money? A con -- a great big con. If people stopped buying the con game, a great big military will surely help to reset confidence.
34:08 guess paying for TH-cam premium isn't enough to see adds anymore. Also, Coinbase is not safe like you said. You are either lying or unaware, in my opinion, though I could be wrong in my comparison; Coinbase is a centralized exchange, and so was Mt. Gox. Also, Coinbase, I'm very positive, if instructed by the government, will seize your funds. I'm extremely unhappy with what you said. I feel lied to, I feel like you are insulting my intelligence. I believe the phrase "not your keys not your coins," is true, and I believe you are wrong. Is Coinbase a good fiat on ramp and off ramp? In my opinion, yes. But that's not what you are selling it as, from what I'm seeing. From what I'm seeing, you are implying they are guaranteed. If I am not wrong (I frequently am), then this is very gross behavior and you should be ashamed of either your ignorance or your unethical behavior (again, if I'm correct - so if I'm wrong, my apologies, but you seem extremely unaware of how crypto works and crypto history, or you seem extremely unethical and if you spoke this way trying to sell securities, in my opinion, you'd go to jail. Securities 101: securities are never gaurenteed and always carry risk of loss of invested capital [yes I know crypto is not a security I'mjust pointing out that this sort of behavior, in my opinion, is in direct opposition to the spirit of the securities law of 33']). Other than this, which I am extremely unhappy with, and appreciate you having Jeff & Emil on. You were an extremely good host (other than the, in my opinion unethical, adds), and great listener, and a wonderful conversationalist.
Okay you're add directly after coinbase was advertising self-custody... dude... I am speechless... I really did not think you were aware because that is so unethical the way you advertised coinbase in my opinion... am speechless right now... absolutely... wow...
Jeff always loses me when he says there’s no inflation because it’s not monetary…. Go look at the M0, M1, M2, or M3 supply chart that spikes like crazy in 2020. How does he reconcile that? Edit: I only called out M2 in original post, but people seem to hate that using that metric so expanding to M0, M1, M3
@@CyanAblaze how is knowing the amount of money supply not useful? We can use M0, M1 or M3 instead, but it doesn’t really matter… All charts spike in 2020. So how can monetary expansion no be at least a significant reason for rise in inflation?
@@MangekyoDominatesAll it’s a pretty common to use M2 to estimate the affects on inflation. We can use M0 but my same argument holds. Charts spike during 2020
@@sn3aky_pants593 M2 was increasing before & during the 07,08,09 financial crisis. Also its been accelerating since then, alongside inflation actually in a decreasing trend overall since (no correlation)
First off you dont understand the term "money" at all. Money defined in Blacks law dictionary is gold and silver coin and not notes. What is a note (Federal Reserve Note)? A note is a promissory note and is a promise to pay, but is not payment, as only when you receive gold and silver did you receive money, what you receive now is a piece of paper (worthless) that becomes a digital ledger at your bank when you deposit it and becomes the property of the bank (court cases actually state the bank account is not yours and can be used by the bank). The whole monetary system is based upon fraud, is unlawful by the Constitution and Bills of Credit are outlawed and SCOTUS has said in a court case that the government has no Constitutional authority to create something of value from nothing, which is what they do. Gold and silver has intrinsic value because it has a cost in mining it and producing it, while computer digits and Fed notes have no intrinsic value and producing a ton of value by the Fed Reserve from nothing with intrinsic value is a crime, its called counterfeiting. Elastic monetary systems are required as there is no way to pay off a debt when the debt is tied to interest. Loan a billion to someone and how can they pay the interest when that extra value doesn't exist at the time the "loan" is made. There is no loan of money because the value given cannot be paid back with interest and nothing intrinsically valuable was ever given as a "loan". When the GAO cannot account for 3 trillion dollars in one year of government spending, you have no transparancy and you cant see the true corrupt nature of where all the fake 'money' is going. This presentation fails to do anything but talk about the system of interaction and no time talking about the fraud of the financial system world wide. The Communist manifesto has one plank that requires the state owns a central bank, why? When the fed reserve actually states in their own pamphet "modern money mechanics" that the man borrowning money from the bank he is actually creating money from his loan application and that money is based upon the confidence of the people using the system, they were being honest. Except they were dishonest in using the term "money" and should have called it what it is "credit" which is another fake term. If i borrow credit and dont pay it back then my credit would go down but I have no liability because the party doing the loan made a bad investment but nothing of value was loaned. No bank can lend their own credit, tons of court cases have stated that, they cant lend their customers deposits (that would be theft), so what credit are they "loaning" .... your own credit. Its all criminal malfeasance. Wake up.
I have failed you. I am at the clearing at the end of the path and have forgot the face of my father. Shame has been allowed to enter the eurodollar dojo.
Is it that Fed effectively takes away (or relaxes) the reserve requirements for commercial banks (basel 3 be dammed)? and when Fed tightens, it effectively reintroduces that reserve requirement (by unloading assets from its balance sheet)??? If that is the case, then Fed tightening will have a big credit squeeze and Housing market will have a very significant impact and so will on Stocks???
![Interview with Macro Alf on Banks, Money & Macro [Eurodollar University, Ep. 194]](http://i.ytimg.com/vi/9cYHTTkykXk/mqdefault.jpg)
emil's ending observations on the compatibility with hard money and democracies was pretty spot on. "scarce" currencies like gold will always lead to a type of feudalism. the irony being 99% of gold bugs will never be a land owning aristocrat or business owner, but instead be a peasant paid in whiskey and cabbage
Emil and Jeff- have been watching you for over a year and admired your thoughts but found them detached from what I was seeing. But your interview here- thank you Blockworks!- helped to crystallize and clarify what you have been saying all this while. Yes, it’s counter-intuitive, but there were things said here that all your prior chat didn’t so explicitly say. Very happy to finally get over the hump.
Fantastic video. Emil and Jeff absolute studs as usual, but it was refreshing to see a host who seemed to “get it” and was able to ask good and relevant questions. We’ll done, gentlemen!
Thank you Aggerlee!
Great great great - Jeff and Emil - are great, Emil the Earl of Eurodollar and Jeff the King
Thanks for spreading the gospel of real finance. l feel something BIG is imminent.
God saves.
Accept the light into your heart. 🧎
@@MrB1923 Jesus quick saves. Hit F5, heathens.
Jeff is for sure an All-Star
Legends. Best duo on YT.
@50:30 John Nash wrote an interesting paper about a money system where an elastic supply national money is floated against a fixed supply money and over time asymptotically approaching parity. Not too unlike gold standard, but a free market solution which required a solution to the re-adjustment problems that make gold or bancor-style systems inefficient. Just saying :)
Hazaa! This was recorded in November 2021 and I only now got around to posting it! I am a bad person. Please check out Mike's podcast and the Blockworks Spectacular Super Show!
You and Jeff might want to check out the article by Tyler Cowen called "The Great Stagnation." It argues that the American economy has reached a technological plateau and the factors that drove economic growth for most of America's history are no longer present.
I have been listening to Jeff and Emile from 2020. How do we get this out to broad based America is my only question. I will do my part
Love this crew
Emil looking sharp!!! Nailed it with those eyebrow movements!!
Emil's eyebrows have been doing their reps at the eyebrow gym.
Best financial channel . I don’t want you to have more subs , i want this channel to myself
Done! Everyone else has to go. Game over.
The best part of waking up is great info in my cup. And good to the last drop.
Here's your daily thank you for another great video.
Coinbase was an absolutely terrible experience. I will never ever again use their miserable services. Strike has been great, zero problems in the last 50 or 60 purchases made.
Eorl Emil Kalinowski, thanks for uploading this! Listened to it when it was originally out on block works, but it was nice to revisit.
I think it's time for you and or jeff synder to appear in JRE
the fed does affect the eurodollars. if the fed raises the over night rate tomorrow to 2% then that will directly affect the front eurodollars
It's the further end that matters , if it isn't growing in alignment then it means this market knows something isn't right
So good. Ahh the “ripple effects” are, and will be, amazing.
What are you guys agenda for monetary reform? Do a video on that pls
Once you start manipulating supply and demand it is all over. It's really that simple. It is, trust mathematics, trust the universe. You can't cheat the game, someone will have to pay. The entire system is a game of hot potato and at the end of the day mainstreet is the ones that get screwed... and this is born out time and time again... but eventually once mainstreet is everything else collapses.
Yaaaasssss! All three of you!
By the way…great interview work
Mr. Ippolito!!!
If the banks get afraid to loan out ledger money, for fear of being called on it, then they stop making loans, and the money supply, of ledger money, shrinks.
Hello, can anyone link the episode mentioned at 23:55? thank you
84b Quantitative Easing: A False God
th-cam.com/video/tG9XSzWKRto/w-d-xo.html
How is it possible 14 years of data shows the Federal Reserve FLAILING ABOUT trying to raise or lower bond yields with MASSIVE purchases of securities via quantitative easing? Because they were 'massive'. The CENTRAL BANK IS NOT CENTRAL to money. The bond market is.
The presumption that people carried gold and silver around every day is false. Most people did not carry money around unless they were going shopping. I believe this began changing when moles came into being as when I was a young girl all stores were closed on a Sunday and the stores in town closed at 6:00. Most stores were only open on a Friday night until 9:00 so that people who couldn't get to do their shopping because they were working had an opportunity to go on Friday night or Saturday.
Too bad the earth isn’t 5 times as large so we could have economic boom times forever! The low hanging fruit (easy energy) is gone… not surprising that as the resource base contracts the wealth starts to concentrate. The banks know that this reality rules and that’s why they are very reluctant to take risk in a structural slowdown.
These two guys are great! More please. And less Yusko please.
Great content as always - thank you.
Also, can you look at the recent DTCC regs and rules that will drastically effect liquidity and equity market structure?
Economy is financialised, but the system works on ever increasing dept. For all intent and purpose we can say it's inflationary system.
Allstars for sure.
@pinnedby Emíl Kaliñowsk curious what you want to share.
Is this the same video that was done 3 months ago?
Yes, it was played on the Blockworks channel and I am replaying it here now. Hazaa!
Can bank reserves be used to buy treasury debt?
Yes 68% or more is bought up by fed. The system is built on ever growing loaning. So FED has the ball, we collapse or they inflate.
Yes, I believe so.
@@EmilKalinowski Then, is that not how the FED can create money?
@@m111ark good question, I think they can only spend them between 1. The fed buying from banks or 2. other banks buying from other banks in a closed system. so it stays as reserves & not new money.
@@ayy2193 I guess I should have said, can bank reserves be used to buy treasury debt from the treasury? That's the question to be answered... because if they can, that's creating money.
How can I email either or both of you?
You can contact me on the Twitter Machine: @EmilKalinowski
One more question about crypto…what about a solar flare that takes down the grid for awhile. This will happen some day… a statistical certainty….paper IOUs representing BTC???!!!
Paper's pretty good for butthole wiping.
valid point, but it's a known unknown. I'm not a proponent of any of these new things but even btc can handle intermittent outage, both a transaction and long term holding is possible without any digital infrastructure, just matter of remembering/writing down a long sentence/string. if anything, 1-in-100 years flares impact may have more serious impact on other comforts we have grown used to (recently there were no major flares like in middle ages)
When I hear someone confidently proclaim that central banks are necessary, I assume they haven't done their homework on free banking and their credibility drops a helluva lot. If that's your angle all you're doing is shilling for a technicality "Akshually the commercial banks create money"
If you use ledger please don't use it with Ledger Live, they record every transaction you do and store it.
The answer to your question is Reason and Personal Responsibility
I'd like to know what their thoughts are on Jeff Booth's book and theory on technology and deflation
Is this a repeat of your old block works interview??
I was a quarter of the way into this before I realized I'd watched it on Blockworks in November. But it was so good and I needed the refresher so I watched it again. I'm puzzled by the whole idea that Bitcoin is a physical asset equivalent to a precious metal. I see it as another form of "fiat" currency, except the guarantor is public confidence in the block chain ledger system instead of a government. All that has to happen is for somebody, some clever state actor, oh, say, the Chinese intelligence service, to do something, even if it's fake, that shakes that confidence, and the whole thing will implode. I laughed at the bit about the kids of today not being interested in gold. If the spit really hits the fan, they will bloody well get interested in gold like everybody else, because in the end it'll still be the only thing left standing, as attested by 5000 years of history.
It appears to me that there is a great deal of belief in cryptocurrencies. It reminds me of a religion. Many younger people who have been raised knowing nothing but how all powerful technology is/will be and not ever experiencing real hard times hope that Bitcoin will save the world. We are living in incredibly safe abundant times and few people, let alone the young, realise that it could turn very bad very quickly. Gold isn't cool exactly because its old! The young will have to be burned badly before they appreciate the wisdom of their elders. Either that or they are right and gold is just a commodity of the past. I suppose that this is financial evolution of the fittest.
Meanwhile for me: gold is the only money, everything else is currency.
All the best.
young kids won't be able to buy gold - they simply won't be able to afford it
Superb video
Vivre le Dictatorships !!!
Ps, Jeff, even if we have a baby boom in the unforeseeable future, the boom would have to be sustained for many years in order to sustain an economic revival . The negative birth rate we are experiencing world wide is having a catastrophic affect on the global financial structure, and the global market system.
True, but if we actually have sustained (say a decade or more) and significant growth in the economy and across the whole economy, I for one would certainly expect there to be a sustained baby boom. Which in turn would fuel the economy. The reason for the current low birth rate across the developed world is because people are acting rationally given the economic conditions. I view the last two decades or so as a kind of recession in real terms for the bulk of the population.
@@ivancho5854 we are in a recession. We have been since 2008. Only banning the feminist movement( as china just did) and the birth control pill will fix the birth rate . The pill dampens womens desire to have children ( the cessation of ovulation bio chemically tells women that they are pregnant ).
The paradox is that kids have to come first, in order to stimulate economic growth,which in turn drives the cost of living down not up.
It's kind of insulting, after Jeff explains clearly why Bitcoin cannot provide all 3 necessary attributes of money because of inelasticity, to have the host restate that he thinks it will be money in the future. I found this to look pretty dumb. How about listening and thinking about what Jeff has said. If he doesn't have an argument against what Jeff has said, why should we be interested in the host's unsupported opinion all over again?
Crypto has a large religious "belief" component. It is no coincidence that most holders are young and religion has waned amongst the young.
Just my 2 Bitcoin.
When did Investment management, portfolioization, trading, and rising asset prices take off?
Jeff's pet peeve is CB's have distorted the bond market and they're central.
What is the monetary system?
The monetary system is a thousand stories we tell ourselves, over and over, until they become true.
Stick to the proselytizing, j33bus
Thanks. Likewise I'm not sure exactly what, but certainly there is appetite for something new.
Every dominant player or narrative starts to tread into inventing new money: first gold, then silver, political paper money, petro$, euro$, subprime/derivatives, now digital (tech) ledger currencies. Maybe digital will take hold next and for long, but ultimate finite resource is the environment, so I'd imagine some sustainability/temperature/emissions underpinning with internet ledger based infrastructure.
ESG is already affecting other assets too, stocks, bonds. Just like oil (peak oil) and banking (euro$) before, it's about time ESG touches the reserve currency.
Hi again. Can you explain, please, is QE a expantion of money? Is QE finit anytime? Is QE in USA and in Europe become in something not controlable? And if citizen have UBI is inflaction go up? Tks . Rgds
There was a downside to creating all that money. The downside is immeasurable.
I don't know. The money creation out of thin air has been going on since the 1950s, so we've had three generations of money growth out of thin air and... it seemed like a lot got accomplished until the music stopped in 2008. Hard to say.
What about banking based finance vs. market based finance. Germany vs. USA?
Thoughts on asset manager capitalism?
Thanks for introducing the sponsor… twice
Did or did not .1% of people in the USA increase their wealth substantially relative to the rest of the country during the last 2 years? Are you saying the 9 trillion in ledger increases the last 2 years are not due to the 9 trillion in ledger increases and it didn’t go to the .1% therefore lowering the purchasing power of everyone else? Were those 9 trillion in ledger increases not sanctioned by the Federal Reserve (and others)?
So what exactly is the Fed if not a "Central Bank"?
Market of last resort.
I see bitcoin as being useful if yr fleeing over the Alps with the Von Trapps. And it might save your life... but its too volatile so far for less crazy situations. Scarcity in the art market does not give value net works and a community of opinion does. If you buy up and hoard most of a good Artist like Stephenson of Alberta you kill the community of interest and thus market value. Talk to some art dealers ..they ponder these things.
How does margin debt fit into money creation? We all know how money is created by the financial system through credit and that bank reserves aren’t money per se, but primary market players can certainly access them. This makes me wonder if money has been created for that or if they’re mainly funded my repo and reverse repo type if arrangements
"Bitcoin’s scarcity will lead to global abundance"
21 million Bitcoin = 2.1quadrillion satoshi
1 BTC = 1,000 mBTC (millibitcoin)
1 BTC = 1,000,000 μBTC (microbitcoin)
1 BTC = 100,000,000 Satoshi
1 mBTC = 100,000 Satoshi
1 μBTC = 100 Satoshi
Lightning network does transactions in millisatoshi.
I agree there are 2.1 quadrillion bitcoins. Not that it matters.
I think bitcoins are more like diamonds than gold because while mined diamonds are finite they can be manufactured by the ton in laboratories.
This could be true with their inherent high value that’s been placed on them by the market and the utilitarian aspects of bitcoin.
Nonsense gold and real diamonds have intrinsic value, BTC just doesn’t, being rare doesn’t give value to something which doesn’t have value in the first place.
Diamond's value is due to the only actual cartel in the world restricting supply & price. It is unknown how scarce gemstone quality stones are, & they only occur in a few mines in the world. People pay high prices for diamonds, believing they are rare, but without actually knowing if that is empirically so.
Sometimes Jeff comes off as arrogant and has a I'm the smartest guy in the world attitude. But I also remember saying that about Muhammad Ali when he proclaimed " I am the greatest ". Turns out he was right too.
👏🏼 👏🏼 👏🏼
How did I miss this episode? It's long enough I can do my beauty routines while I listen.
Hi :) Crypto 2022, even 2021 is not only bitcoin and dollar-pegged stables. Maybe you and Jeff can take a look at so-called de-fi 2.O? So far as I know Frax Finance, Olympus Dao and Tokemak all start from a realization that fix supply and store of value provided by btc and pegged stables aren't enough for a currency, and also you need something "elastic" to prevent systemic risks.
How’d gentlemen see the housing bubble ?
My one dollar bill says, "Federal Reserve Note" - I wonder.
Why don't Jeff and Emil create their own ideal digital currency. (Or white paper.) With all the features they think it needs?
"What about currencies - are they diluting those signals as well". Yes, in the short term, the banks absolutely manipulate currencies as anyone who has traded forex knows.
Jeff: "we need elasticity" in our money supply.
Emil: "Bitcoin is the future" even though it is about as elastic as gold.
Hmmm...
Bitcoin is INFINITELY divisible.
1 Bitcoin = 100,000,000 Satoshis.
@@MrB1923 Gold is infinitely divisible down to the molecule (although at some minimal unit would be so small that it would have to be represented by some kind of small unit proxy). For example:
1oz
.1 oz
.01 oz
.001 oz
.0001 oz
.00001 oz
.000001 oz
.0000001 oz
etc.
Therefore, if a finite supply is a problem with gold, then it should also become a problem with bitcoin.
Is Monero the solution?
@Ro Cor What you mean Monero is not private, I thought that was it's whole selling point?
No.
"Don't fight the Fed" only means, don't make competing currencies. It's what all the wars are about, ya' know.
And the reality of equality, is impossible. There has never, and will never, be anything that is equal.
Lastly, no currency can be contingent on availability of electricity. A mixed currency model is best.
all I heard from these three was innovation, digital currency and being a paid employee....
as the answer for financial inequality
its funny I owned bitcoin before I understood CB to.., once I understood it I bought more... the I saw what happened in CANADA I semi went all in..
even though I don't see that happening here.. better safe for now than sorry
If you all are correct about no innovation without redoing the money system, how come Tesla is hiring, growing, and thriving with the way it is now? Best paying jobs among auto workers.
What are Mehrling and Poszar talking about? They act like they are saying something really important.
All the money that is out there and that’s being created is in the financial industry
Jeff is the LeBron of EDU!
So, a bank, or financial institution is willing to lend money to a customer to buy a house. The bank or financial institution doesn't really have that money, they just use a ledger entry in place of it. The home builder gets the electronic credit, and bang, it's real money that they can purchase supplies with, and pay their workers with. Some of the workers might then buy choose to buy a house themselves and get a loan of ledger money from the bank. The money that worker earns with his hard work and uses to pay his mortgage, is really just ledger money. No green backs need to have ever existed.
@Bob- You are correct. According to Dr. Richard Werner only about 3% of money is NOT created in this manner.
AH! If the ECB, the bank of Japan and the Federal reserve are not central banks, than what are they? They are ... Smoke and mirrors. Just like on Lost it's a big "red herring."
Interviewer: Gold and fixed money didn’t work out well so why would Bitcoin work now? That’s where I am now but I have *complete* faith in Bitcoin.
You just asked yourself the most important question about what money needs to be and then… dismissed it.
Emil: “…banks created money out of thin air and what sustained it? Confidence.”
So what sustain confidence in the value of money? A con -- a great big con. If people stopped buying the con game, a great big military will surely help to reset confidence.
34:08 guess paying for TH-cam premium isn't enough to see adds anymore. Also, Coinbase is not safe like you said. You are either lying or unaware, in my opinion, though I could be wrong in my comparison; Coinbase is a centralized exchange, and so was Mt. Gox. Also, Coinbase, I'm very positive, if instructed by the government, will seize your funds. I'm extremely unhappy with what you said. I feel lied to, I feel like you are insulting my intelligence. I believe the phrase "not your keys not your coins," is true, and I believe you are wrong. Is Coinbase a good fiat on ramp and off ramp? In my opinion, yes. But that's not what you are selling it as, from what I'm seeing. From what I'm seeing, you are implying they are guaranteed. If I am not wrong (I frequently am), then this is very gross behavior and you should be ashamed of either your ignorance or your unethical behavior (again, if I'm correct - so if I'm wrong, my apologies, but you seem extremely unaware of how crypto works and crypto history, or you seem extremely unethical and if you spoke this way trying to sell securities, in my opinion, you'd go to jail. Securities 101: securities are never gaurenteed and always carry risk of loss of invested capital [yes I know crypto is not a security I'mjust pointing out that this sort of behavior, in my opinion, is in direct opposition to the spirit of the securities law of 33']).
Other than this, which I am extremely unhappy with, and appreciate you having Jeff & Emil on. You were an extremely good host (other than the, in my opinion unethical, adds), and great listener, and a wonderful conversationalist.
Okay you're add directly after coinbase was advertising self-custody... dude... I am speechless... I really did not think you were aware because that is so unethical the way you advertised coinbase in my opinion... am speechless right now... absolutely... wow...
Women and their rights
Almost first. ...
Does Jeff have dental insurance from Alhambra?
Jeff always loses me when he says there’s no inflation because it’s not monetary…. Go look at the M0, M1, M2, or M3 supply chart that spikes like crazy in 2020. How does he reconcile that?
Edit: I only called out M2 in original post, but people seem to hate that using that metric so expanding to M0, M1, M3
M2 is not a useful measure of money
Who dafaq is dumb enough to even follow M2 aside from calculation of the money multiplier
@@CyanAblaze how is knowing the amount of money supply not useful?
We can use M0, M1 or M3 instead, but it doesn’t really matter… All charts spike in 2020. So how can monetary expansion no be at least a significant reason for rise in inflation?
@@MangekyoDominatesAll it’s a pretty common to use M2 to estimate the affects on inflation.
We can use M0 but my same argument holds. Charts spike during 2020
@@sn3aky_pants593 M2 was increasing before & during the 07,08,09 financial crisis. Also its been accelerating since then, alongside inflation actually in a decreasing trend overall since (no correlation)
First off you dont understand the term "money" at all. Money defined in Blacks law dictionary is gold and silver coin and not notes. What is a note (Federal Reserve Note)? A note is a promissory note and is a promise to pay, but is not payment, as only when you receive gold and silver did you receive money, what you receive now is a piece of paper (worthless) that becomes a digital ledger at your bank when you deposit it and becomes the property of the bank (court cases actually state the bank account is not yours and can be used by the bank). The whole monetary system is based upon fraud, is unlawful by the Constitution and Bills of Credit are outlawed and SCOTUS has said in a court case that the government has no Constitutional authority to create something of value from nothing, which is what they do.
Gold and silver has intrinsic value because it has a cost in mining it and producing it, while computer digits and Fed notes have no intrinsic value and producing a ton of value by the Fed Reserve from nothing with intrinsic value is a crime, its called counterfeiting. Elastic monetary systems are required as there is no way to pay off a debt when the debt is tied to interest. Loan a billion to someone and how can they pay the interest when that extra value doesn't exist at the time the "loan" is made. There is no loan of money because the value given cannot be paid back with interest and nothing intrinsically valuable was ever given as a "loan". When the GAO cannot account for 3 trillion dollars in one year of government spending, you have no transparancy and you cant see the true corrupt nature of where all the fake 'money' is going.
This presentation fails to do anything but talk about the system of interaction and no time talking about the fraud of the financial system world wide. The Communist manifesto has one plank that requires the state owns a central bank, why? When the fed reserve actually states in their own pamphet "modern money mechanics" that the man borrowning money from the bank he is actually creating money from his loan application and that money is based upon the confidence of the people using the system, they were being honest.
Except they were dishonest in using the term "money" and should have called it what it is "credit" which is another fake term. If i borrow credit and dont pay it back then my credit would go down but I have no liability because the party doing the loan made a bad investment but nothing of value was loaned. No bank can lend their own credit, tons of court cases have stated that, they cant lend their customers deposits (that would be theft), so what credit are they "loaning" .... your own credit. Its all criminal malfeasance. Wake up.
GOOOOOOAAAAALLLLLD
that kid brought nothing, pointless rants and a hideous 4 minute shilling (i am vomit), disappointingly low level, Emil.
I have failed you. I am at the clearing at the end of the path and have forgot the face of my father. Shame has been allowed to enter the eurodollar dojo.
Bitcoins will never be eurodollars. Limited supply is the basis of bitcoin. Unlimited supply is the basis of eurodollars. Who's the fascist?
No sound!!
I hear things....
@@EmilKalinowski I dont. I follow all your talk, but this one is whitout voice. I ll try later. Keep up with your GREAT WORK. Jirko
@@levengereu Sadness! I hope it fixes itself. Mine is good still.
Is it that Fed effectively takes away (or relaxes) the reserve requirements for commercial banks (basel 3 be dammed)? and when Fed tightens, it effectively reintroduces that reserve requirement (by unloading assets from its balance sheet)???
If that is the case, then Fed tightening will have a big credit squeeze and Housing market will have a very significant impact and so will on Stocks???