What are the elements of a successful monetary system. Source: Bartek.cieslak at Polish Wikipedia. Edited and captioned. Topics covered include: The stone currency of YapThe fiat currency of ancient ChinaWhy money requires trust, accounting, and tokensWhy too much money can lead to inflation and too little to deflationWhy the best money is useless other than as money Show Notes The island of stone money : Uap of the Carolines by William Henry Furness The Gold … [Read more...]
308: Coins and Cash: Shortages, Hoarding, and Threats
What is the cause of the current U.S. coin shortage and when have there been other shortages. Why is there a push to get rid of both the penny and the hundred dollar bill. Topics covered include: How many coins does the U.S. Mint produce each year and why hasn't it been enough to avert a coin shortage in 2020.How the U.S. coin shortage in the early 1960s differs from today.How much profit does the U.S. Mint make producing coins even though it loses money minting both pennies and … [Read more...]
300: Ray Dalio and the Changing World Order
What are the forces that lead to the rise and fall of nations. Why does the U.S. appear to be in decline and what investors can do to prepare. Photo by TechCrunch (CC BY 2.0) Text and overlay added. Topics covered include: An overview of Ray Dalio and Bridgewater Associates' investment processWhy human productivity is the most powerful force for creating wealth.Additional forces that contribute to nations increasing in power and wealth.Why being the reserve currency is an exorbitant … [Read more...]
285: Money is Debt
Money can be used to purchase things now or saved to purchase things later. If individuals want to save their money to purchase things in the not too distant future, they can invest in what are known as cash equivalents. These include savings accounts at banks or money market mutual funds. Cash equivalents pay a little bit of interest while also having price stability in that the value of deposits varies little from day-to-day. Money Is Debt Backed By Debt Gary Gorton, Professor of … [Read more...]
281: Four Forces That Will Shape The Next Decade
This decade that is coming to a close has been rewarding for investors. The 2010s were marked by a slow but prolonged economic recovery following the Great Financial Crisis of 2008 and 2009. The U.S. began the decade with an unemployment rate of 10%. Now it is 3.5%. The current U.S. economic expansion is the longest in U.S. history. Stock and Bond Return Expectations Against that backdrop, global stock markets as measured by the MSCI All Country World Index in U.S. dollar terms … [Read more...]
227: How To Teach Children About Money
Here are four most important things to teach children about money and why showing is better than telling when it comes to kids and finances. Photo by Charlein Gracia In this episode you’ll learn: Four money principles all children should learn.Why just-in-time learning is a great way to teach kids about money Show Notes The Little Virtues by Natalia Ginzburg Episode Sponsors CNote Episode Summary Parenting is no easy feat, and one of the biggest questions … [Read more...]
199: What Kind of Money Is It?
How a bank panic led to the creation of the Federal Reserve, and why having diversified sources of money can protect us in case we have a bank panic today and can't get access to our bank deposits. Photo by Annette Fischer In this episode you’ll learn: How a bank panic and economic crisis in 1907 led to the creation of the U.S. Federal Reserve in 1913.How U.S. currency evolved after the establishment of the Federal Reserve.How currency, bank deposits, gold and Bitcoin differ in … [Read more...]
MNY142 Plus: ETF Screening, Money Creation, Trading Costs, and a Bond Fund
This week January 28, 2017 on Money For the Rest of Us Plus we look at reasonable bid-ask spreads for newer ETFs. We also look at criteria for screening ETFs in an database. We explore why depositing funds in a bank account doesn't create money but borrowing money does. Finally, we look at the merits of the Eaton Vance Limited Duration Closed End Fund (EVV). … [Read more...]
99: Money Is Story
How money originated and why our relationship with money is driven by the stories we tell. Photo by Christina B. Castro In this episode you'll learn: How money originated.Why most money is virtual.Why the worth of money fluctuates both in the market and in our minds.How the stories we tell define our relationship with money. Show Notes The Wealth of Nations by Adam Smith Debt - Updated and Expanded - The First 5000 Years by David Graeber Your Story About Money - Seth … [Read more...]
94: How Money Is Created and Destroyed
How federal governments allow banks to create the vast majority of the world's money supply, and why that erodes the value of money over time. Photo by Generation Grundeinkommen In this episode you'll learn: What is financial intermediation.What is fractional reserve banking.How banks create money through creative accounting.How banks decide how much money to create through their lending decisions.How central banks try to control the amount of lending.Why federal governments can … [Read more...]
