I think Bitcoins and the Blockchain are amazingly cool. I still don’t think Bitcoins are a useful currency and I worry that many of Bitcoin’s biggests fans also like the gold standard, Austrian economics and some other crazy stuff. What impact will the loss of Bitcoins over time have on the economy?
Jeffrey Robinson, the author of the well known book “Laundrymen” that I’m now reading, has written an engaging story about The Satoshi Faithful (as he calls them) supporters of Bitcoin and where their Faith is leading them stray. The book is called BitCon: The Naked Truth About Bitcoin and it doesn’t pull punches in deriding the […]
Pretty far from a normal topic for this blog, but at least it relates to money. Norway has new banknotes or at least they will be 2017. Standard on one side and abstract, competition winning pixelated art on the other. Feels appropriately Scandinavian to me.
The UK Telegraph (and other sources) are highlighting the rising panic about Euro area deflation. For those Austrian / hard money / gold standard / bitcoin / generally poorly informed amongst you, it’s not that deflation is itself a problem, but that it creates scenarios of debt spirals increasing the real value of debt obligations and […]
S&P declares Argentina to be in default for the second time in 13 years and the third in 25. Inflation is likely to hit 40% this year and the Peso has already lost a quarter of its value this year, measured against the US Dollar. Messages? This time isn’t different, sovereign debt crises happen all […]
I’ve been working with a few insurers and reinsurers on credit risk recently. We’ve had plenty of reasons to think about it, what with new regulations (SAM, Basel III) and South African government downgrades. However, sometimes I get the impression that credit risk is viewed as an academic risk, as something that happens to others, […]
I’m not really that close to developments in the Chinese economy. It is a large, complicated beast that is quite different from our own. Over the last year or so I’ve heard more and more from people who generally speak sense that the debt levels in China and the awful investment projects used to show […]
Unsecured credit explosion? Sure. Concerns about abuses and sustainability in this sector? Absolutely. But is overall domestic credit extension out of control? Are real interest rates negative? Is the global economy strong and steaming ahead? The answer to all these questions is “no”. Here is a graph produced from public reservebank data.