Emerging Markets: Strong Dollar & The Path to Emerged Markets

How do you value pieces of paper? What creates currency? What makes the dollar a reserve currency?

There are several different models used to value currency, including Purchasing Power Parity and the BEER (Behavioral Equilibrium Exchange Rate) model, amongst others. There are several variables that go into those models, most notably conditional expectations, current rates, term premiums, national savings/investment, demographics, and interest rate differentials.

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Governance through Decentralization on the Blockchain

Decentralization is an important part of the blockchain, and one of the reasons that a lot of investors are curious in the product. The way that the blockchain operates is on a peer to peer network, utilizing consensus mechanisms. There is no over-arching “person-in-charge” (on Bitcoin). On some of the other coins, such as Ethereum and Vitalik Buterin, there is direction and input from the creator of the coin, but they don’t control the entire exchange process.

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Black Swans and the Federal Reserve: Is There Really a Difference?

“The black swans are circling like vultures now. Dark economic events seem to be flying in out of nowhere for those who have vision to see them. Even dovish New York Fed President William Dudley says that he is less confident about the economy than he was when he and his Feddish partners voted to raise interest rates last December …

There is practically a parade of black swans lined up for action.

Look at how many poked their heads up in just the past week — all just waiting their turn to have a go at the market.

Will it be bankruptcies in shipping, oil drilling, auto loans and student loans that pile up into a big enough heap to implode a couple of major banks, or will it be the Chinese flush turning into a whirlpool that sucks all industry down, or will US economy manage to hold on until the next housing collapse when the next wave of adjustable-rate mortgage failures hits people who only put 3% down so that banks lose a bundle in foreclosures during a market of falling prices?

Or will it simply be that recession is already here as a sinking tide that lowers all boats?

My point has always been that with so much bad economic news building up in the world and such monstrous overhangs of national, corporate and personal debt — mostly worse than the last timearound — the odds are strongly stacked on the side of major trouble. If you’re wise you’ll prepare for that in reasonable and prudent ways.” – Michael Pento

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