Topic: Monetary reset

In a Nutshell

The financialization of our modern day credit driven economy and the unprecedented explosion of debt in the past four decades have slowly but surely driven our monetary system to a dead end. Unless preempted by a major war, the impact to our society when the monetary reset unfolds will not be smooth.

We go into mid-level details on topics contributing to the monetary reset, many of which are not covered, intentionally or otherwise, by mainstream media in the hope that you won’t get broadsided by this financial pickup truck when it hits and complain “Nobody saw this coming”.

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

Monetary Reform: Part 1 – Iceland Eyes Master Reset Button

After a near death experience of its banking industry during the 2008 global financial meltdown, Iceland looks hard at the root causes of the crisis and contemplates the reset button to its monetary system, a system which shares the same characteristics and ills with the ones used by all major economies.

April 6, 2015

Draghi and the Chocolate Factory

With the latest central-bank-gone-mad printfest otherwise known as quantitative easing from the European Central Bank, the financial world is firmly in the twilight zone. The extend and pretend strategy is pretty much on its last legs, and the monetary end game is now in sight.

March 16, 2015

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

Syriza Alexis Tsipras Uttered Voldemort

In his open letter published in a German newspaper prior to the Greek election, now prime minister Alexis Tsipras let loose a fusillade of Voldemorts, laying bare what has been obvious to many but which seemingly everyone was afraid to utter in public.

January 29, 2015

Bail-in At Your Local Bank – Part 4: Your Last Chance To Act

G20 governments are quietly slipping bail-in provisions into law to make sure that next time a too big to fail bank blows up again by derivatives it will be rescued using depositors’ money, in the name of protecting the taxpayers.

January 6, 2015

Bail-in At Your Local Bank – Part 3: Institutionalizing the Money Grab

Herded along by the Financial Stability Board, governments of leading economies endorsed a framework during the past G20 Summit whereby depositors’ money will be used to rescue a failing bank when the global derivatives casino blows up again next time.

January 5, 2015

Bail-in At Your Local Bank – Part 2: The Derivatives Time Bomb

The derivatives market, the trigger of the 2008 global financial crisis, has since gotten even bigger and more concentrated into fewer hands. A mutually assured destruction awaits the global economy next time it goes off again.

January 4, 2015

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