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Interbank market news scan: Incentivizing the market for a CBDC.

Why not amend the Federal Reserve Act so that depositors can create and enter their own overnight market where they authorize the exchange of funds at some rate agreed to by depositors? Rather than risk less than optimal participation in the digital currency system including the risk that black markets for US currency are created, the government and the Federal Reserve could consider such an incentive system. Continue reading Interbank market news scan: Incentivizing the market for a CBDC.

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Interbank market news scan: The jobs report wraps up the Holy Week.

Mr Biden may have missed an opportunity to craft a narrative that emphasizes the importance of getting ahead of the inflationary impact of blocks of emerging economies threatening to transition from the US dollar to resource-backed currencies. These threats have yet to materialize into something definitive and until then the inflationary impact of dumping the US dollar or at least complementing it with other currencies is a way off. Continue reading Interbank market news scan: The jobs report wraps up the Holy Week.

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Interbank market news scan: NFA issues rule to protect against manipulating bitcoin and ether prices.

The Federal Reserve would like to see a looser employment market, including reduced wage pressure and an uptick in unemployment. If these measures do not work to control inflation into 2024, more intrusive measures targeting consumer spending are anticipated. Continue reading Interbank market news scan: NFA issues rule to protect against manipulating bitcoin and ether prices.

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Georgia Power still looks like a proxy for bonds.

Ratepayer advocates in particular should keep in mind that ratemaking occurs in an environment outside of a public utility hearing room; that the rates used by a utility to attract investors and determine the rate of return on the assets used to generate energy are impacted by what happens in the banking environment. How you structure your strategy on rates should take this environment into consideration. Continue reading Georgia Power still looks like a proxy for bonds.

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Interbank Market News Scan: Central bank digital currencies are likely more about efficiently changing the money supply.

The Federal Reserve’s intent around central bank digital currency is to create a direct and efficient way to manipulate money supply. A programmable digital currency that regulates spending via some algorithm or all out reduces dollar amounts in accounts again by some algorithm would save the Federal Open Market Committee two days of hair pulling decisions. CBDCs would amount to their unique version of ChatGPT, an artificial monetary policy environment that reduces the FOMC’s role to monitoring and advising versus direct policy action. Continue reading Interbank Market News Scan: Central bank digital currencies are likely more about efficiently changing the money supply.

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Money: Staying mindful of how the State regulates society

The State regulates society via the following: Via money … Gold, silver, currency, bank notes, etc., are not money. Sounds like heresy, but in actuality, these items are derivatives, representations, of real money. Real money is the energy released and used in the creation of value. The time spent and the sweat created when harvesting … Continue reading Money: Staying mindful of how the State regulates society

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Being a political leader calls for empathy.

Can empathy be taught? Yes, it can be taught, but there is a risk that, depending on where the politician is during their growth cycle, signs of empathy may come off more forced than organic.

The journey should start early. An elected or appointed official should not want to risk putting off later in their career the ability to empathize. The voter may not provide her with a long or linear learning curve. Continue reading Being a political leader calls for empathy.