Hi everyone,
FED just released their FOMC Statement 
Link: https://www.federalreserve.gov/newsevents/pressreleases/monetary20210317a.htm
For Investors out there, there’s no need to panic in my opinion
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Hi Everyone, @ivan @filip @Arami_Alfarhani. Please correct me if I’m wrong in my opinions.
I would like to explore the idea of “Negative Interest Rates” and a transition from our current Cash Society to a Cashless Society where Bitcoin, Ethereum, or other Stable coins will be the main currency and has wide adoption.
I summarized the main points of the article How to Make Negative Interest Rates Work? in the following sections below.
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Negative Interest Rates - The idea is that you would pay the bank for keeping your money in it. This aims to boost Consumption and Investment thereby boosting Demand that stimulates the economy. The problem with this is that people might just Keep Cash in their Home that has Zero Interest rate, instead of paying banks because of Negative Interest Rates, this would not stimulate Demand.
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Cashless Society - Simply put, an economy without physical Cash can implement Negative Interest Rates and reap its benefits! The problem is the transition towards a cashless society.
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Dual Currency Proposal - The article proposed a brilliant idea of having 2 currencies which it referred to as: Cash-Dollar (Cash we use today) and E-dollar or E-Money (Digital Currency). The goal of this dual currency is to have a smoother transition by exchanging Cash-money to E-Money and to make the transition faster, the FED would implement a depreciating conversion rate of Cash to E-Money which would make the Cash lose value against E-Money over time. Since Negative Interest Rates are implemented, the rate at which the conversion of Cash to E-money depreciates should be higher (more negative) than the Negative Interest Rate on E-Money. Over time all Cash-money would be converted to E-money therefore a Cashless Society.
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It will be interesting to see how “Gov’t Money” will transform from it currents form.
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I really didn’t understand the last part of the episode “Gold Backed” in section 4. He talks about gold being pegged in 1944 at $35/oz, but then says:
“problem with fixed exchange rates (pegs) = you’re forced to defend them. If demand for gold skyrockets & you’re trying to retain $35/oz rate, you’re forced to start selling gold to maintain that price, but unsustainable if there are more dollars in the system than the rate you fixed.”
Can someone please help explain? Thanks!!
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Someone callled the moneyprinting Central Bank the bar that makes everybody drunk… 
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The dollar was backed by gold to create confidence in the dollar.
If the price of gold rises, that means distrust of the dollar.
You then have to ‘throw gold on the market’ to bring the gold price down again and restore confidence in the dollar.
Since your gold supply is not infinite, you can’t do this forever.
I hope this helped a bit.
Interesting:
In the late 1960s, De Gaulle of France wanted to exchange his dollars for gold. The USA was forced (because so established: dollar is as good as gold) to sell him the gold. Other countries followed.
This eventually led to the decoupling of the dollar from gold on August 15th 1971.
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I have currency in my pocket with an everchanging value that isn’t backed by anything. Wow I need to get some money.
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Government money is controlled, inflatory, discriminative and unsustainable. It puts the market at the mercy of Government and Federal reserve puts the country in Debt,
Platforms like SWIFT display unfair advantage to non conformity nations through centralized control that limits choices.
Governements control money supply by printing and increasing interest rates as well as decreasing supply by destroying money notes without replacing the money.
Governments also buy assest and create loans for commercial banks who loan the local banks who loan the public. They also buy back assets in an attempt to stabilize the economy like they did in 2008 financial crisis. More currently like in the US they offer stimuls packages through printed currency that further drives inflation up. Central banks buy and increase their balance sheets while government borrows as their financial state plummets.
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I was not too clear on the $35/ gold oz discussion, these articles helped me better understand and broke down this history a bit more - for reference for others:
The Losing Battle to Fix Gold at $35 - Part 1
The Losing Battle to Fix Gold at $35 - Part II
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Sounds exactly like the entire world is already in the process of since the launch of the pandemic out of China as nations spend to fight “the invisible enemy” we are seeing the biggest transfer of wealth to the top .001% wealthiest in human history. We are also seeing a greater GDP boom in China compare to the west since the pandemic. Get ready for “The Great Reset”
The Fractional banking explanation may explain why the U.S. has had a liquidity issues in the past few years until the Federal Reserve started the Repos.
Hi,
Just would like to point out that the instructor (Anil Patel) appears to have made a couple of mistakes when he presented the Bretton Woods Conference of 1944 at around 3:10 section of the Gold-backed video.
First mistake is that he said 11 year later after the 1933 US government’s ceasing of all gold in the US that “another world war”(World War II) was over when the the Bretton Woods Conference was held in 1944. This is historically incorrect because World War II actually ended in 1945.
Second mistake is that the video said the Bretton Woods Conference was held in 1944 with 44 nations attending, including Japan. This is again historically incorrect because in actual history the Bretton Woods Conference was held in the US in 1944 with only Allied nations (all 44 were Allies) attending. As Imperial Japan was still actively at war with the Allied nations in 1944 as part of the Axis powers, it was never at the Bretton Woods Conference.
These two mistakes skew the actual WWII history a bit too far, so I feel they need to be pointed out and corrected to prevent students getting certain major historical facts confused.
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Well, after finished watching the rest of the Gold-backed video, it appears that the instructor is also indicating that Germany was also at the Bretton Woods Conference of 1944 which was incorrect. Nazi Germany was not yet defeated until May of 1945.
I don’t agree with how the instructor have presented Bretton Woods Conference in such simplified manner so to make it looks like that it was conducted after WWII when all the major nations (both victors and losers) were gathered and then democratically agreed to the gold-backed US dollar and then pegged their currencies to the US dollar.
In 1944, the Axis powers were on the path to their final defeat with Italy capitulated already to the Allies in 1943 while Nazi Germany and Imperial Japan were still stubbornly fighting a losing war against the Allies. And even the already defeated Italy was not at the 1944 Bretton Woods Conference which only the Allied nations were invited and attended. So in fact the Bretton Woods Conference was a meeting for only the supposed victor nations (the Allies), and the strongest of them all was the US that also had 2/3 of the world real money (gold). And through the Bretton Woods Conference the foundation for the US to eventually become the economical and military Super Power on earth was set in motion. And the loser nations of WWII simply followed, without any other choice (unless they turned communist and joined the Soviets), the final decisions of the Bretton Woods Conference after Axis’ complete defeat in 1945.
Looking back, the US appeared to have turned out as the greatest winner ever after WWII. There is definitely truth that in the US the WWII generation has been hailed the Greatest Generation - they grew up through the Great Depression and knew what they had to do and sacrifice in order to build a strong country so their posterities would not suffer through what they had endured.
Anyway, I do very much appreciate the instructor’s sharing and teaching me his great knowledge and insights into money and Bitcoin, maybe it is necessary for him to simplify his presentation on 1944 Bretton Woods Conference due to the length of time he is allowed for the short video. So I am just filling in with some more depth and details in the perspectives to hopefully bring out a fuller and more vivid picture of this period of our history.
Enough said, back to study I go…
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Government Money = Scam money
The worst Scam coin in history
- 27trillion in circulation
- unlimited supply cap
- only 1 node
- 25% of supply minted in last 6 months
- 1% of holders own 30%
Ladies & Gentlemen that’s US dollar!!!
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Government money is part of the federal reserve and has everything stored in tax that is needed to fund. Also, inflation goes up by each year with the government’s aid.
Fiat?..not worth my time…lol
Government money where to begin,
Goiing up in supply and down in value, its a trend
You work hard til you die for paper scrapes
They lounge around with a printer on their laps.-
DDC
Governmentt money, in terms of the U.S. dollar was backed by gold until president xon. After revolving the dollar from the gold standard the world entered into the U.S. Fiat era, this is important because the U.S. dollar is currently the world reserve currency.
The money supply has increased tremendously with the help of the central back through the purchase of assets. The central banks job/ role is to keep unemployment low maintain interest rates and “help” during financial crisis.
My comments may be a bit off topic but they’re what’s on my mind when I think of government money right now. When I think of how government money is wasted and funds are collected but then infrastructure is not put in place to help society become better it seems a bit hopeless. By contrast cryptocurrencies offer such promise. I now realize that I understand so little about the complex flow of money through the government via business and politics. I’m surprised by Canada’s stand on cryptocurrency. We had BTC and ETH ETFs before the US but I see that US allows cryptocurrencies to be held in 501K retirement funds. We don’t have that option, only the ETFs are allowed. I see so many missed opportunities from a country that is supposed to be so high tech. In trying to figure out how to pay taxes on crypto I thought it very strange that in 2017 when I tried to understand how to do it, it was taxed as a commodity, that they consider one single trade to possibly mean you have to it claim as business income. You have to contact the government so they can tell you if you’re carrying on a business or not. So even if I don’t feel I’m running a business, the government may tell me that I am. How strange. If you trade to make a profit you’re running a business apparently, so if I have a loss it’s not a business? If I trade stocks as investments why is that not a business? However, I thought if you held onto assets you usually were trying to make a profit. The government sees crypto as a source of money from taxes but doesn’t seem to know how to treat it. It’s a really contradictory situation and I feel like they are limiting Canadians access because they have not worked through the taxation of it. This isn’t really government money I suppose but it brings it back to the idea of value. Once the value of something is understood and the taxation settled it seems that is considered to be money. When you see countries adopting crypto or producing their own, it really brings crypto into the realm of government money. I really don’t know what to say about this topic except that it’s really complex and I’m holding out for digital assets to become mainstream.
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At the end he improvised 