currency

Fractional Reserve Banking: History & Risks

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Reading Time: 4 minutes The monetary system underlying economies in the West, and throughout much of the rest of the world as well, relies on what is known as fractional reserve banking. Understanding how this system works, its effects and tendencies, is important not only from an academic but also an investing perspective. This…CONTINUE READING

The Federal Reserve: Everything You Need To Know

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Reading Time: 9 minutes What Is The Federal Reserve? The Federal Reserve System was established on December 23, 1913 with the enactment of the Owen-Glass Act also known as the Federal Reserve Act, making the Federal Reserve System (The Fed) the central bank of the United States. The Federal Reserve System consists of twelve regional…CONTINUE READING

Quantitative Easing (QE): Are We Making A Mistake?

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Reading Time: 7 minutes The current path of monetary policy in the form of quantitative easing (QE) world wide and particularly in the United States is following a dangerous trajectory, one that has a historical precedent without looking back several centuries. This disastrously flawed monetary experiment has plagued Japans economy and its people since the…CONTINUE READING

2017: Where Are We In The Business Cycle?

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Reading Time: 5 minutes Following the 2008 financial crisis that catapulted America and Europe into what is called the great recession,The Financial Crisis Inquiry Commission (FCIC), the committee which investigated the causes of the crisis, concluded that it could have been averted. Such conclusion has implications of large proportions. Mainly, our way of managing our financial…CONTINUE READING

The U.S. Trade Deficit: What’s Next?

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Reading Time: 4 minutes No aspect of American trade is talked about more and understood less than the trade deficit of the United States. However despite that, the U.S. trade deficit has almost nothing to do with trade policy. A nation’s trade deficit is determined by the flow of investment capital into or out of the…CONTINUE READING

Is The United States Dollar Real?

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Reading Time: 4 minutes The Federal Reserve Note (FRN), commonly referred to as the United States Dollar, is a debt issued by a private corporation (Federal Reserve) that has a monopoly in the geographic region of the United States as legal tender (currency) by decree of the Federal Reserve Act of 1913. In other…CONTINUE READING

What is Money? Do You Own Any?

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Reading Time: 4 minutes What is money? Are you confusing currency with money or vice versa? Not understanding the difference between the two can, unfortunately, force you into making unwise long-term investment decisions with your life’s savings. Barter Why do we need money? You can exchange your time creating goods/services for goods or services,…CONTINUE READING