Love the title first of all, and the theory is not far off. If one listens closely enough to all the economists, they’ve been screaming their heads off that an economic nuclear winter is coming and it is going to make 2008 Economic Crisis look like child’s play. We are facing a serious road-bump […]
Truth be told, I never thought about this line of thinking with respect to gold. It is one of those simple and elegant solution. Needless to say, there will be a huge debate ‘if’ it will happen or not, but nonetheless, elegant solution with respect to currencies and gold standard. Central banks are out of […]
How do banks transfer money?
A question asked of me often is How do banks transfer money? How is money transferred from one country to another? I mean how does it work? How does my account get debited of $100 and somewhere around the world someone’s account get credited for $100.
Another parallel question is, How does $100 Million transfer? I mean, say if America is giving someone loan, how do the two countries transfer $100 Million? Or even $10 Billion? How does this work? How can the wealth of one country decrease by $10 Billion and another one’s increase by $10 Billion?
Is money physically moved? Do they transfer cash in vaults?
A lot of people have asked what is this with Bitcoin pundits claiming that the US Dollar is losing its Buying power and that this is something that Bitcoin doesn’t have, i.e. inflation, since the supply is limited. The above graph is an excellent visual representation of the Money Supply Growth vs Dollar’s Buying Power […]