Just wanted to correct something Landgrebe said about Russia. Russia DOES have fiat currency. They also have fractional reserve banking. Same as most (all?) nations in the west and beyond. Interestingly their fractional reserve ratio requirement is 4.5% (it's 0% in the US, UK, Canada and Australia, 10.5% in Mexico) meaning banks only have to hold 4.5% of all deposits, they can invest or gamble with the rest. While Russia's central bank is buying up gold to keep in reserves, so are most central banks of nations with large economies (and some smaller economies). This is because Gold is considered a tier 1 asset according to the BIS, along with the US dollar, since March 2019.
Enjoyed this conversation
Grazie
https://substack.com/@lisa336748/note/c-72408010?utm_source=notes-share-action&r=4kyd42
Looks like good weekend viewing!
https://substack.com/@lisa336748/note/c-72408010?utm_source=notes-share-action&r=4kyd42
Fantastic interview. Filled with hope. Can’t wait until Jobst’s 2nd ed comes out. You’ll him on again to announce it’s release?
this was a good talk
Great discussion, as always.
Just wanted to correct something Landgrebe said about Russia. Russia DOES have fiat currency. They also have fractional reserve banking. Same as most (all?) nations in the west and beyond. Interestingly their fractional reserve ratio requirement is 4.5% (it's 0% in the US, UK, Canada and Australia, 10.5% in Mexico) meaning banks only have to hold 4.5% of all deposits, they can invest or gamble with the rest. While Russia's central bank is buying up gold to keep in reserves, so are most central banks of nations with large economies (and some smaller economies). This is because Gold is considered a tier 1 asset according to the BIS, along with the US dollar, since March 2019.
Hvala! Grüß Gott!
Loaded interview and a fast speaking guest - is a transcript available?
I believe substack automatically produces a transcript