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Descent of the Global Monetary System

Tom Spencer

In the long run, it would seem fairer to base the global monetary system on an asset that is not produced exclusively by any one nation and which people are generally willing to accept as valuable. Bretton Woods System: 1944 – 1971. The Bretton Woods System created a kind of monetary discipline.

System 88
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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

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It’s Not “Time Management.” It’s Lean.

Markovitz Consulting

In the space of two weeks, the New York Times and the Wall Street Journal both ran articles on the productivity benefits of reduced work hours. Not to be outdone, NPR reported that Microsoft Japan moved to a four-day workweek this summer while increasing productivity by 40%.

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Two-Week Price Inflation in Argentina hits 30%, US Products Lead the Way; Currency Devaluations Hit P&G Earnings

MishTalk

A tour of various supermarkets in the city of Buenos Aires, found escalating inflation is much higher in stock products, perfumery and milk. Venezuela uses a de-facto dual-exchange rate system, but policy changes recently enacted by the Venezuelan government are affecting the way that certain imports — i.e, is now $13.55.

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The Cantillon Effect

Tom Spencer

In 2020, the Fed has galloped over the precipice, increasing its balance sheet by around $2.8 However, this has only been possible by significantly expanding the amount of debt in the system. Returning to a free market system where prices are determined by supply and demand rather than by government or central bank policy.

Banking 120
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Pettis on Strains in China's Banking System; Avoiding the Fall

MishTalk

Next year will be a very important year for China because possible strains in the banking system and the intensity with which the reformers present their case will give us a better sense both of how much debt capacity the country retains and of how well positioned Xi Jinping and his allies are to implement the needed reforms.

Banking 71
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Consultant Ninja: A Simple Question about the Credit Markets.

Consultant Ninja

Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. Should this happen we would suffer major systemic failure, potential hyper-inflation, and illiquid capital markets. Productivity. (6).