The "What is Money?" Show Money, Velocity, and Bitcoin’s Impact with George Gammon (WIM457)
Apr 11, 2024
Financial expert George Gammon discusses money, velocity, and Bitcoin's impact. Topics include quantitative easing's influence on money supply, Federal Reserve's crisis management, functions and properties of money, critiques on Federal Reserve's control, future of money with Bitcoin and CBDCs, potential outcomes of a dollar crash, complexities of the global monetary system, and implications of banking systems on the economy.
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Government Spending Increases Velocity
- Government spending can increase money velocity by shifting savings to checking accounts.
- This shift creates upward price pressure without necessarily increasing the total money supply.
Money as Bank IOUs
- Money today is best described as commercial bank deposit liabilities, essentially IOUs on bank ledgers.
- This understanding helps explain the philosophical and practical reality of money today.
Fed's Power Is Psychological
- The Fed influences markets mainly through psychological effects, not direct mechanical control.
- Ending the Fed would require collective disbelief in its power and influence.