Global Money, a Work in Progress

Today global money is largely private credit money, the issue of a profit-seeking bank that promises ultimate payment in public money which is the issue of some state, quite possibly a different state from the one where the bank is chartered and does its business.  Global money is also largely dollar-denominated, even when the ultimate users of that money lie

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EME vulnerabilities and the Fed

On 13 September the BIS released its latest Quarterly Review placing emerging market vulnerabilities at centre stage.  On 17 September, the FOMC voted against raising its target policy rate, citing near-term headwinds for the US coming from abroad.  “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in

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Getting clear on clearing

Gary Cohn, president and COO of Goldman Sachs, weighs in with his doubts about the wisdom of the current regulatory push to move as much as possible of security trading onto clearinghouse platforms.  (See article in FT here, and podcast here.)  Now Moody’s asks for industry feedback on clearinghouse risk, and CFTC Commissioner Bowen reiterates call for “public directors and

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