Tuesday, 21 October 2014

Monthly Archives June 2011

What is Bitcoin?

June 29, 2011

The bitcoin phenomenon has attracted quite a lot of attention lately. It has been discussed in many blogs and media websites. But what are they? Are they really money? Can they replace actual monetary institutions? Who issues and manages the bitcoins? Does the regression theorem hold, and if so how? What the bitcoins are, and […]

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Greece and the Lost Opportunity of the Euro

June 23, 2011

With the financial crisis affecting the United States and Europe, here and there are comments and concerns on what could happen with the dollar, the euro and even the international monetary order. With politicians and economists warning that the financial crisis can become the worst economic situation since the Great Depression, this concerns comes with […]

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A Bit of Sound Money: BTC & FRB

Posted by Gonzalo Schwarz
June 21, 2011

In the argument between proponents of fractional reserve and 100% reserve banking, it often comes down to a moral argument with the Full Reservers usually charging that fractional reserve banking (FRB) is inherently fraudulent because it is placing two full, separate claims on the same item, i.e. a piece of purchasing power*. The Fractional Reservers […]

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You’re Pre-Approved! (Tim Geithner’s junk mail)

Posted by Tyler Watts
June 20, 2011

It goes without saying that finances are tight for many Americans these days. The problem is not only affecting American families at all income levels, but the mighty US government. For a sampling of our government’s fiscal woes, check out this (hypothetical) junk mailer recently found in the inbox at the US Treasury. What is […]

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A Bit of Sound Money: Can Trust Be Centrally Planned?

Posted by Gonzalo Schwarz
June 17, 2011

Bitcoins (BTC) have found their way into the news recently, largely as a result of their association with the underground economy via the “Silk Road: Anonymous Marketplace,” and are very much worth examining in a forum dedicated to sound money. They are a completely decentralized, mostly anonymous, and very interesting new attempt to take on the […]

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Two Problems with Price Level Stability

June 16, 2011

Price stability has become the main concern of central banks around the world. Both, inflation and deflation, are considered bad outcomes. But because deflation is considered to be worst than inflation, it became practice to prefer to err to the side of inflation to be sure we avoid deflation. If price stability (low inflation) is […]

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