Category: Primers

Primer on the Widely Misunderstood Money Creation Mechanism

Forget about what you have been taught in economics classes on how money is created. This is how it really works in real life.

April 11, 2015
In-depth topic: Monetary reset

A Primer on Re-hypothecation

Hypothecation happens when a borrower pledges collateral to secure a debt. Even though the borrower retains ownership of the collateral, the lender has a right to seize said collateral should the borrower default. This way, the creditor ‘hypothetically …

March 6, 2015
In-depth topic: Monetary reset

A Primer on Derivatives

Financial derivatives are financial contracts in which the promised payoffs are derived from the performance of another underlying entity. The underlying entity can be an equity (such as an individual stock or a stock index), interest rate, credit or c …

January 3, 2015
In-depth topic: Bank bail-in