What’s Next For Bitcoin In An Era Of “Helicopter Money,” Negative Interest An...
Searching For The Roots Of Bitcoin’s Narrative If we are to understand bitcoin’s meteoric rise, we must return to 2008. After all, the world’s largest cryptocurrency by market capitalization is a child of the global financial crisis (GFC). Once Lehman Brothers went into bankruptcy, many banks and financial institutions across the globe followed. Governments all over the world soon stepped in, bailing them out. Three days after Lehman went bust, Hank Paulson, U.S. Secretary of the Treasury, and Ben Bernanke, head of the Federal Reserve, went to President George W. Bush and him, “We....
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Is the US Federal Reserve still capable of reducing negative effects from recessions and other economic shocks? Not without drastic measures, says a critic. More Extreme Measures. The answer is yes – at least, according to a paper by the Fed’s own deputy director of its research and statistics division. Closer inspection of the details, however, suggests....
Quantitative Easing (QE) has so far not produced the runaway inflation some predicted. But before you start feeling comfortable about fiat currency again, central planners have another trick in store, i.e. “helicopter money,” a term that’s back in vogue thanks to a country that has tried almost everything to stimulate its economy: Japan. A more extreme....
To get updates of my thoughts on bitcoin and the global financial markets please follow @sammantic. Miles Kimball, who is a Professor of Economics and Survey Research at the University of Michigan tells CoinTelegraph about negative interest rates, the future of paper and electronic money, and how cryptocurrrency fits in. Negative interest rates are a recent topic garnering much attention in the economic world. In no particular order, Denmark, Switzerland, Germany, Netherlands, Germany, Austria, and Sweden have or have recently had negative interest rates. On top of that some corporate....
Deutsche Skatbank, a division of VR-Bank Altenburger Land, is introducing negative interest rates. Customers with over €500,000 on deposit as of November 1 will earn a "negative interest rate" of 0.25%. In other words, instead of earning positive interest, they will have to pay 0.25% per year for banking services. Also read: ECB Announces Negative Interest Rates: Bitcoin Price Rallies. Of course, the initiative received a lot of criticism. Wolf Richter says: "'Punishment Interest' is what Germans lovingly call this. It's the latest and most blatant step of the central-bank strategy to....
European Central Bank. In a landmark monetary policy move, the European Central Bank (ECB) has announced negative interest rates. The ECB will charge an interest rate of -0.1% to banks wishing to store euros within central bank vaults. Domestically, the intention is to prod banks into lending money to businesses as opposed to buying government bonds. Internationally, the intention is to cause depreciation of the Euro relative to other currencies to increase the competitiveness of European exporters. It is unlikely that individual users in the 18 countries under the ECB's control will see....