BIS – The Central Bank of Central Banks


 

QUESTION: Could you please tell us more about the bank of the national banks (BIS) located in Swiss?
Many thanks for your information. I love to read your blog first thing in the morning!!!

JS

ANSWER: The Bank for International Settlements (BIS) was originally established to handle the reparation payments of Germany. It was also supposed to facilitate cooperation among the central banks. However, it had no real power to compel them to do anything, which was demonstrated by France who refused to agree with the other member concerning the reparation payments of Germany. The BIS was created in 1930 at the Hague Conference. A convention respecting the establishment of the BIS was signed between Belgium, France, Germany, Italy, Japan and the United Kingdom on the one hand, and Switzerland on the other. The BIS is owned by 60 central banks, representing countries from around the world that together account for about 95% of world GDP. It is the central bank for central banks.

The BIS does have a full range of traditional short-term instruments, denominated in reserve currencies. The BIS instruments allow customers to meet cash management objectives. They also provide tradeable instruments that are widely used by reserve managers seeking credit quality, which they will issue in major currencies along the yield curve. The paper is 1 to 5 years in maturity.

 

William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour


Published on Nov 27, 2012

William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour. WILLIAM ACKMAN, Activist Investor and Hedge-Fund Manager We all want to be financially stable and enjoy a well-funded retirement, and we don’t want to throw out our hard earned money on poor investments. But most of us don’t know the first thing about finance and investing. Acclaimed value investor William Ackman teaches you what it takes to finance and grow a successful business and how to make sound investments that will get you to a cash-comfy retirement. The Floating University Originally released September 2011. Additional Lectures: Michio Kaku: The Universe in a Nutshell http://www.youtube.com/watch?v=0NbBjN…

Introduction to the income statement | Stocks and bonds | Finance & Capital Markets | Khan Academy


Published on Aug 19, 2009

The income statement, revenue, gross profit, operating profit, net income, ROA and ROE. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: Life is full of people who will try to convince you that something is a good or bad idea by spouting technical jargon. Most of them have no idea what they are talking about. Don’t be one of those people or their victims when it comes to stocks. From P/E rations to EV/EBITDA, we’ve got your back! About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything

More on balance sheets and equity | Housing | Finance & Capital Markets | Khan Academy


Published on Mar 15, 2008

What happens to equity when the value of the assets increase or decrease? Created bySal Khan. Watch the next lesson: https://www.khanacademy.org/economics… Missed the previous lesson? Watch here: https://www.khanacademy.org/economics… Finance and capital markets on Khan Academy: This old and badly drawn tutorial covers a topic essential to anyone planning to not live in the woods — your personal balance sheet. Since homes are usually the biggest part of these personal balance sheets, we cover that too. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything

When Will Interest Rates Rise?


QUESTION: In the recent past you have spoken about rising interest rates in the USA being imminent. Just wondering where we stand on that front as rates have been in a downtrend since peaking last fall?

Thanks,

Pete

ANSWER: The rise in interest rates comes with the turn in the ECM in January. However, what you have to understand is there will be a divergence between private and public rates. The central banks really cannot raise rates without creating a budget crisis. The more likely outcome is that governments are losing their ability to borrow in the real market. The public rates are more likely to become simply pegs that render them useless in all practical terms. We have already witnessed this in Europe. The central bank created negative interest rates. All they have done is to kill the viable domestic bond markets.

Millennials Saddled with Student Loans that Prevents them from Becoming Homeowners


New findings are out from the New York Federal Reserve that reveal a troubling outlook for millennials who have now reached over US$1 trillion of debt, but the worst of it is student loans. This is a sharp rise of 22% over the past five years and is worse than any other generation in history. This debt crisis among millennials casts a dark cloud over the real estate market. With such high debt levels, this is a serious restraint upon obtaining home mortgages.

Ironically, millennials are much more conservative than the debt balances may indicate, but this could also be because of the student debt. In fact, in comparison to previous generations, this group is significantly more fiscally conservative with credit cards. Many into their 30’s are still living at home. With high student debt, many cannot afford a home, but another level cannot even afford an apartment. There is a new trend emerging whereby old motels are becoming housing. They lack the credit to rent an apartment with a security deposit. The new alternative is to rent per day in these old motels with rates of $50 to $80 per day.

This is not painting a very nice picture of the American Dream. To get the donations from the bankers, the Clintons served them up on a platter by making student loans non-dischargeable in bankruptcy. The Clintons signed into law economic fraud and slavery. These kids are paying for degrees and then cannot find a job in what degree they have studied.

Universities are notorious for handing out degrees for fields with no prospects of employment. So many went for degrees in Marine Biology wanting to help dolphins. The prospect of a job was never high on the list of probabilities. There are studies that show colleges are not providing jobs. They have turned higher education into just a business and buyer beware. In fact, the research has found that those jobs requiring a bachelor’s degree list more soft skills than technical skills among the set of requirements. On top of that, there is a trend of rising suicides due to student loans.

Student loan debt is now the second highest consumer debt category — second only to mortgages as a whole and higher than credit card debt. There are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt and growing. Even Zillow’s research, the big realtor, has reported that student debt has impacted the real estate market in many ways by reducing future buyers. The real shocking number is that 40% of millennials are still dependent on mom and dad. The excuses seem endless. Student loan debt can make buying a home IMPOSSIBLE! This is part of the reason real estate has been in a bear market since 2007 when we look at the average home.

Why Are Capital Controls Destructive?


QUESTION: Controls v Protectionism

If capital controls would be such destructive measure, then China already has in place what one would consider Capital Controls and if they were to lift their control a lot of money will leave China – why is that not destructive: as you mention that the centre of finance will move east to China.

BHL

ANSWER: Sorry, I suppose I was not detailed enough. Capital controls are destructive when they are imposed to prevent foreign capital from leaving. They are a red flag that warns nobody else will invest. In the case of China and Russia, when that airtight policy was imposed upon their own people, then it retarded economic growth.

The bulk of Bitcoin traffic was used to get capital out of China. We see a lot of Chinese buyers around the world, even in real estate.

China is trying to gradually move toward an open market. When capital is free to flow in and out, then China will be ready to displace the USA as the financial capital of the world. Had the United States imposed capital controls after the war, then both China and Europe would still be in an economic dark age.

How to Improve Work Ethic


Valuetainment

Published on Nov 10, 2016
For detailed notes and links to resources mentioned in this video, visit http://www.patrickbetdavid.com/improv… Visit the official Valuetainment Store for gear: https://www.valuetainmentstore.com/ If you don’t have a strong work ethic, I can’t work with you. Here’s why. If you don’t have a strong work ethic, you’re not going to give the highest return possible on the knowledge and skill passed on to you. Why should I put time into you if the duplication part is not going to return? So in this video I get into 15 ways to improve your work ethic. #1: Be Predictable – 8:14 #2: Consistency – 10:24 #3: Prepare the Night Before – 10:53 #4: Do More – 12:06 #5: Subscribe to the “Now” Mentality – 14:10 #6: Find Running Mates – 15:56 #7: Don’t Fall for the “Work Smart Only” Concept – 16:43 #8: Cut Distractions – 18:25 #9: Absolute Focus – 18:58 #10: Have a To-Do List – 19:35 #11: Eat Right – 20:01 #12: Plug the Leaks – 20:16 #13: Cut the Fat – 12:12 #14: Drop Perfection – 22:13 #15: To Avoid Burnout, Have Your Own Escape – 23:22

 

 

DNA of an Entrepreneur


Valuetainment

Published on Nov 3, 2015
DNA of an Entrepreneur- Patrick shares eye opening facts about entrepreneurs in a live setting that will disrupt your existing perception about entrepreneurship. Do you have the DNA of an Entrepreneur? Visit the official Valuetainment Store for gear: https://www.valuetainmentstore.com/ The Startup Entrepreneur Tour http://www.patrickbetdavid.com About the tour: Patrick Bet-David and his production team took off on a 30 day, 10,000 mile trip across the U.S. The reason? Inspire more people to become entrepreneurs. Official Startup Entrepreneur Tour Highlights Video: https://www.youtube.com/watch?v=qjcho… Connect with Patrick on twitter: http://www.twitter.com/patrickbetdavid Article on Entrepreneur: http://www.entrepreneur.com/article/2… To see more videos from Entrepreneur Network partner, Patrick Bet-David check out VALUETAINMENT https://www.youtube.com/user/patrickb…

The Truth Behind the Affordable Care Act – Learn Liberty


Published on Mar 23, 2016

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The Affordable Care Act (popularly known as “Obamacare”) promised to lower costs and give everyone in America access to health care coverage. 6 years later, has it lived up to its promises? Learn More: http://www.learnliberty.org/ Watch more Learn Liberty videos on health care technology, policy, and entrepreneurship — plus get a free, on-demand video course. http://www.learnliberty.org/health-care/ Did the ACA get you covered or not? Have your own health care bills gone up or down? Check out more of Dr. Davies’s research on http://mercatus.org/antony-davies For more videos about where we’ve been and where we’re headed in health care, check out http://learnliberty.org/health-care We’ll also be holding a livestream tomorrow (3/24) at 3:00pm (EST) on our Facebook page (https://www.facebook.com/LearnLiberty/) with Dr. Robert Graboyes. How do we fix the current problems in our health care system to create better care for more people at lower costs? Be sure to tune in to ask your questions about the economics of health care!