Finance, Banks, Cryptocurrency, Metals Archives

IMF: Crypto, Stocks Surged In Response To Central Bank Policies Since 2020

11Jan

By Patti MohrNo Comments

Big Tech, Digital Economy, Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Brief

IMF: Crypto, Stocks Surged In Response To Central Bank Policies Since 2020

In Effect, The Policies Pose The Risk Of Shocks To The Financial Systems Photo by BTC Keychain January 11, 2022--Cryptocurrencies and stock market equities skyrocketed as central banks produced loose monetary policies amid the 2020 global pandemic. Although cryptocurrency prices and some high-growth stocks have dipped since the start of the year, they both "surged amid easy global financial conditions," the International Monetary Fund reported on today. That may come as no surprise among high finance investors who carefully watch interest rates established by central banks, especially those in the United States and Europe. But today's report by the IMF appears to be the first acknowledgment from the multilateral organization that government agencies are fueling the boom in r...

Blockchains 101: A Beginner’s Guide To What They Are And How They Work

6Jan

By Jesús CedeñoNo Comments

Finance, Banks, Cryptocurrency, Metals, Types of News: Analysis

Blockchains 101: A Beginner’s Guide To What They Are And How They Work

A Look At One Of The Most Revolutionary And Disruptive New Technologies By Jesús Cedeño The words blockchain and cryptocurrency are becoming increasingly familiar. It seems like they’re mentioned on the news almost every day, generally speaking about Bitcoin. Since some articles talk about the bitcoin blockchain and some about the bitcoin cryptocurrency, a lot of people think the two words are synonyms. However, that’s not true. Those words refer to two different, albeit related concepts. Blockchains are the technology that makes cryptocurrencies possible. And, when push comes to shove, they are just very sophisticated and secure ledgers. In this article, we’ll be taking a look at blockchains to find out what they are, how they work, and why there’s so much fuss about them. Blockc...

Central Banks Fuel Stock Market Expansion in 2021

30Dec

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Analysis

Central Banks Fuel Stock Market Expansion in 2021

Low-Interest Rate Environment Also Contributing To Rising Cost of Housing December 30, 2021--With near-zero interest rates by central banks in the United States and Europe, companies raised $12 trillion in 2021 sales of stocks, bonds, and new loans. That's up 17 percent from 2020, according to reporting by the Financial Times. Low-interest rates make borrowing easier and increase the money supply. The downside is they encourage riskier investments, benefit those who already own assets, and can skew the societal risk toward inflation. In effect, investors benefit while consumers pay more. Cash to Keep Flowing in 2022 The trend is likely to continue in 2022. Research by J.P. Morgan suggests the U.S. Federal Reserve will continue a "broadly accommodative" policy despite its tape...

Crypto Assets Grew By 200 Percent In 2021

4Nov

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Types of News: Brief

Crypto Assets Grew By 200 Percent In 2021

Ethereum Grew Tenfold Over The Last Year November 4, 2021—Cryptocurrency assets grew by roughly 200 percent, from just under $800 billion to $2.3 trillion, according to Jon Cunliffe, Deputy Governor for Financial Stability of the Bank of England. The rapid growth in the takeup of the asset is grabbing the attention of regulators around the world. "When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice," Cunliffe said, in an October speech. He added that regulators shouldn't overreact. "We should not classify new approaches as 'dangerous' simply because they are different." Institutions Are 'Just Getting Started' Meanwhile, as the assets go mainstream, some of the hold...

Fed Decision ‘Skews Risk Toward Inflation’

3Nov

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Global Economics, Types of News: Brief, United States

Fed Decision ‘Skews Risk Toward Inflation’

Despite Economic Recovery And Rising Prices, U.S. Central Bank Keeps Interest Rates Near Zero November 3, 2021—The Federal Reserve announced today it will begin reducing the amount of Treasury securities it purchases every month, in light of economic progress. However, in a move that mirrors the European Central Bank decision, the U.S. central bank is maintaining an accommodative stance on monetary policy, meaning it will continue to increase the money supply. Specifically, the committee is keeping the Federal funds rate at 0 to 0.25 percent, which is slightly above Europe's negative rates. A key point is the Fed is no longer basing the decision on the U.S. unemployment rate, which is historically low. The measure of success for the central bank now includes the labor participat...

Cryptocurrencies Are Hot Despite The Warnings. Here’s Why.

3Nov

By Jesús CedeñoNo Comments

Finance, Banks, Cryptocurrency, Metals, Types of News: Analysis

Cryptocurrencies Are Hot Despite The Warnings. Here’s Why.

Here's A Helpful Guide To Understanding Cryptos By Jesús Cedeño November 3, 2021—Just about everybody with internet access has heard about Bitcoin and cryptocurrencies these days. They may not really understand them, but they have heard of them. New Economic System Cryptocurrencies and blockchains (the technology that makes most of them work) were created to show that a new kind of economic system is possible. One where central banks, commercial banks and other traditional financial institutions are no longer in control. Investing in cryptocurrencies is a hot topic all over the world, with over $133 billion worth of crypto being traded every day and a global market capitalization that exceeds $2.6 trillion.1 However, there have been several warnings issued relating to cry...

El Salvador’s Volcano-Powered Bitcoin Goes On Display

29Sep

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Types of News: Brief

El Salvador’s Volcano-Powered Bitcoin Goes On Display

September 29, 2021—Just a few weeks into its experience of using Bitcoin as its national currency, El Salvador, under the leadership of its entrepreneurial leader, is employing the use of its volcano to mine the cryptocurrency. President Nayib Bukele released a video today showing a state-owned geothermal facility on the side of El Salvador's volcano with Bitcoin mining machines. He introduced it on Twitter, saying "First steps." https://youtu.be/Y-S-oa3Rp8I The state-owned facility, LaGeo, is a subsidiary of the Comisión Ejecutiva Hidroeléctrica del Río Lempa. Bitcoin mining involves solving complex math problems with blockchain technology through high-powered computers. A study by the University of Cambridge suggests that Bitcoin mining consumes 121.36 terawatt hours ...

‘Debt Doesn’t Matter,’ Treasury Secretary Yellen Tells Senate Committee

28Sep

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief, United States

‘Debt Doesn’t Matter,’ Treasury Secretary Yellen Tells Senate Committee

September 28, 2021—It's been 20 years since Vice President Dick Cheney asserted to the world and the U.S. Congress that "deficits don't matter." Today, Treasury Secretary Janet Yellen asserted a similar sentiment when asked about the overall size of the debt. In an exchange with Sen. Mike Rounds, R-SD, Yellen said it is the interest cost of the debt, which is virtually zero, is all that matters. "When do we have to say, 'Enough is enough' when it comes to our deficit and our debt?" Rounds asked. Yellen responded that "there are different metrics" for looking at the level of debt. One is the debt-to-GDP ratio. "We are a little bit over 100 percent," she added, "which has traditionally been regarded as high." But rather than use that metric to examine the debt level, Yellen s...

23Sep

By Ernesto RodriguezNo Comments

Finance, Banks, Cryptocurrency, Metals, Finance, Currency, Debt, National Budgets & Interest Rates, Types of News: Analysis

El Salvador’s Big Bitcoin Experiment

Photo: Diario Libre Will It Be A Win-Win For Country And Currency? Editor's Note: In June, the World Bank rejected El Salvador's request for help in implementing Bitcoin as the country's legal tender. But that didn't stop El Salvador's ambitious leader, President Nayib Bukele, from making the cryptocurrency the country's national currency. Corresponding writer Ernesto Rodriguez examines the prospects for the country and currency in this report. September 23, 2021—It’s been a few years since cryptocurrency, and especially Bitcoins, appeared as a new exciting prospect in the world of economics. Since then, it has become an important part of the economic conversation, with some people worried about the lack of transparency they represent and others praising the freedom they see in a ...

Fintech’s Fast Growth in SE Asia Attracts Consumers And Investors

3Sep

By Frank McMullinNo Comments

Big Tech, Digital Economy, Finance, Banks, Cryptocurrency, Metals, Types of News: Analysis

Fintech’s Fast Growth in SE Asia Attracts Consumers And Investors

In The Last Decade Fintech Provided Access To Banking For Millions Of Southeast Asians September 3, 2021--Consumer and investor activity in e-commerce is disrupting the way transactions take place across the globe and reaching Southeast Asia’s massively underserved populations without access to formal banking or credit institutions. As the pandemic evolves and economies reopen, the result is a boom in e-commerce investment in the area is booming. Meanwhile, it is further supported by local governments. Today Southeast Asian economies are primed hotbeds for financial technology, also known as fintech, and investors are taking notice. What Is Fintech? Fintech is an emerging class of technology that supports banking and financial services. This ranges from cryptocurrency to e-w...