Fractional Reserve Money Multiplier
In the fractional-reserve banking system, a bank can produce a loan in excess of it’s reserve currency holdings. The money multiplier tells us how much money is created from each new unit of reserve currency created. If a bank holds no extra currency, currency holdings are zero, then the money multiplier will be the direct inverse of the required reserve ratio.World Paper Money To Be Replaced By Electronic-Digital Currency
This would appear to be out of the proverbial Ripley’s Believe It Or Not. But as mind-boggling as it may seem, word has it that in the not so far future, World Paper Money could very likely be replaced by electronic-digital currency. Even the very thought of such a concept would seem astounding and rather unacceptable to the human mind. But then so were two hitherto unheard brothers who went by the name of Orville and Wilbur Wright and their unbelievable machine that has made travel across the worlds oceans, but a mere silky smooth pillow to rest and wake up to.World Bank Notes Bring About Major Changes
Cotton paper with a weight of around 80 to 90 grams per square meter is mostly used in the making of World Bank Notes. The final decision though, is based on the directives issued by the central bank of the specific country. Here the decision is taken as to what should even be the design of the money.Seeing the Forest for the Trees
The hardest thing about investing is removing the emotion. How many times have we gotten in our own way of success and ignored the facts due to a “feeling” or because wanted to feel a certain way? That’s where we are today with the economy and the market, and why it’s so important to see the forest for the trees.How America’s Superpower Status Is Slipping Away
The problem of China’s persistence in manipulating its currency has much bigger and more symbolic implications for America than just the loss of jobs and sales. It is now evident that other Asian countries are following China’s lead rather than America’s.Global Trade Wars and Currency Manipulation – This is a Bad Road to Travel for Humankind
The World needs to be careful not to get drawn into a trade war due to China’s manipulation of its trade policies, as it seeks to “win” above all else for itself rather than sticking to the fundamentals of a Western Style “Win-Win” relationship with the rest of the world. Personally, I am gravely concerned with what’s going on and see more storm clouds on the horizon and continued escalated conflict from what began as a trade war. An interesting article in Reuters to read was entitled; “IMF Warns Against Currency War,” by Steven C.Don’t Blame The Economic Fallout
Banking failed.Banks were meant to save us,help us or throw a raft to us when we are drowning.Banks were supposed to manage risks or the risks in the marketplace.Instead they were undone by them.Can similar smoke come up your chimney?An Embarrassment Of Riches
The unceremonious dumping out of the tournament of the England team, supposedly our ‘dream generation’, showed up something which many commentators have noted: that there seemed little motivation for these pampered players to do well for their country. This despite huge financial rewards – or is it because of them?Welcome (Back) To The Age Of DIY America
Big Government, Big Media, Big Medicine, Big Everybody, take note: we’re starting to ask ourselves what, exactly, we need you for. The mood is changing in the United States. The entitlement/victimhood generation is waning, and entrepreneurship/charity is on the rise. Where, before, we were inclined to let our big institutions do for us, we are starting to feel more like doing for ourselves, and for each other.Financial Collapse of America – Prepare and Profit
You can be a skeptic all your want, but it is now evident that the Financial Collapse of America is coming on hard and strong. Instead of panic, realize there is a way you can prepare and even profit from this event.What Are The Causes Of Deflation?
The causes of deflation are linked directly to inflation and the only cure for inflation is a deflation. The following is a list of causes of deflation and manifestations of deflation leading up to the Greater Depression that started in 2000 and may not end until 2020 (end of the mania). When seeking the causes of deflation we need to remember that the real cause was credit inflation.