Thank you for your comments. My interest in history comes from reading. I think we all find that it is after school that interests and learning truly develop! The Bank of Amsterdam story was not unique, but is often misinterpreted as a better banking model than fractional reserve banking. In fact, like Hamburg Amsterdam was a commercial centre where many different currencies ended up. The Bank's business was to take them in by weight and credit depositors with the proceeds, drawable in specie.
I find history can be useful context for demonstrating economic and monetary theory!
Hello Alasdair thanks for your response. And indeed history is a good guide into what comes next. In 2016 I saw an interview between Willem Middelkoop and Jaap van Duijn. In that interview they discussed the interest rate policy of the ECB and Jaap did not agree at all what Mario Draghi was doing at that time at the ECB. Jaap van Duijn was in the board of directors at Robeco he is now retired. In that interview Jaap van Duijn said that a good economist has a good knowledge of history. The last couple of years I follow people who work in the financial sector and particular economist who have knowledge of history know to place the current situation is a good historical context so you understand better what is going on and where to invest.
I came across some of your insightful interviews and presentations last year on utube and from there have read your research articles on Goldmoney with interest. Thanks for everything you do to explain the distinction between money and credit. I've always had an instinctive feel that your analysis is correct but could never articulate it with as much credibility as yourself. My understanding of economics is now so improved I could explain von Mises monetary regression theorem! Keep up the excellent work, Richard
I'm guessing, but like all European institutions the LBMA has gone all woke and perhaps China's banks are not prepared to comply with pointless regulations. They are better off dealing in Dubai. And anyway, they buy gold direct from the refiners and in doré form from mines without going through the market.
You are correct, which is why it will take some considerable time to introduce. The Bank of England decided to not open direct bank accounts and proposes that sterling CBDC accounts will be administered by commercial banks.
I think this new enterprise could not be better timed. You are making your move just as History is changing gear. To me it seems that you are writing the history of these times, as the events happen, in a way that is essential to any real understanding of the action. You are a proper writer too, in the old fashioned sense. I have only just begun to understand how the mass production of fiat currency distorts everything, causing cultural as well as financial misallocations, leading to ruin. In my mind, as I write, are university 'creative writing' MAs, etc., and the endless outflow of fiat funded pseudo literary nonsense (another aspect of the everything bubble) that, from the point of view of a reader, in the old fashioned sense, appears to have obliterated the art of poetry entirely. After reading your articles for a while I finally understood Ezra Pound and truly began to appreciate his genius. Thank you for that.
I am looking forward to the 'chat' community and to interacting with you in terms of being able to ask a question. At the moment, I only have one, but I will refrain from asking it until you have got into your stride.
What I noticed in the articles you publish on Gold Money and Schiffgold is that despite the fact you have worked all your life in the financial sector you also know a lot about history in relation to economics. I asume you did not study history as part of your education at school / university. So where did this interest of history come from and how did that develop over the years ? In one of your articles you discussed partly our "golden age" in the 17th century and on the Dutch TV I saw several a documentaries about it but never the Bank of Amsterdam was mentioned so it was funny you brought it up in one of your articles. Bert Huizinga the Netherlands
Welcome to Substack Alasdair, it is fast becoming the place for high quality and engaging writing. Glad to see you joining, I look forward to reading your articles from which I always gain new insight.
I too have recently come over to this platform. My first post is here:
Hi Bert
Thank you for your comments. My interest in history comes from reading. I think we all find that it is after school that interests and learning truly develop! The Bank of Amsterdam story was not unique, but is often misinterpreted as a better banking model than fractional reserve banking. In fact, like Hamburg Amsterdam was a commercial centre where many different currencies ended up. The Bank's business was to take them in by weight and credit depositors with the proceeds, drawable in specie.
I find history can be useful context for demonstrating economic and monetary theory!
Hello Alasdair thanks for your response. And indeed history is a good guide into what comes next. In 2016 I saw an interview between Willem Middelkoop and Jaap van Duijn. In that interview they discussed the interest rate policy of the ECB and Jaap did not agree at all what Mario Draghi was doing at that time at the ECB. Jaap van Duijn was in the board of directors at Robeco he is now retired. In that interview Jaap van Duijn said that a good economist has a good knowledge of history. The last couple of years I follow people who work in the financial sector and particular economist who have knowledge of history know to place the current situation is a good historical context so you understand better what is going on and where to invest.
Congratulations on this new venture, Mr Macleod, and thank you for taking the trouble. Much appreciated!
Hi Alasdair and Happy New Year,
I came across some of your insightful interviews and presentations last year on utube and from there have read your research articles on Goldmoney with interest. Thanks for everything you do to explain the distinction between money and credit. I've always had an instinctive feel that your analysis is correct but could never articulate it with as much credibility as yourself. My understanding of economics is now so improved I could explain von Mises monetary regression theorem! Keep up the excellent work, Richard
I'm guessing, but like all European institutions the LBMA has gone all woke and perhaps China's banks are not prepared to comply with pointless regulations. They are better off dealing in Dubai. And anyway, they buy gold direct from the refiners and in doré form from mines without going through the market.
You are correct, which is why it will take some considerable time to introduce. The Bank of England decided to not open direct bank accounts and proposes that sterling CBDC accounts will be administered by commercial banks.
Thanks Andrew. I look forward to your question!
Thanks David. I'm looking forward to engaging more closely with the widest possible audience.
I think this new enterprise could not be better timed. You are making your move just as History is changing gear. To me it seems that you are writing the history of these times, as the events happen, in a way that is essential to any real understanding of the action. You are a proper writer too, in the old fashioned sense. I have only just begun to understand how the mass production of fiat currency distorts everything, causing cultural as well as financial misallocations, leading to ruin. In my mind, as I write, are university 'creative writing' MAs, etc., and the endless outflow of fiat funded pseudo literary nonsense (another aspect of the everything bubble) that, from the point of view of a reader, in the old fashioned sense, appears to have obliterated the art of poetry entirely. After reading your articles for a while I finally understood Ezra Pound and truly began to appreciate his genius. Thank you for that.
I am looking forward to the 'chat' community and to interacting with you in terms of being able to ask a question. At the moment, I only have one, but I will refrain from asking it until you have got into your stride.
What do you make of China withdrawing from the LBMA as noted by Jim Willie In december ?
Regards
Richarde
Hello Alasdair I have a question regarding CBDC and it is comming from my background in which I work.
For more then 35 years I already work in the IT sector in the Netherlands as a contractor and thanks to that I have worked
at all the large banks in the Netherlands. And what you see is that they all have roughly speaking between 4 to 6 million bankaccounts
for individuals , the profit sector and non profit sector.
To support this they have all a large and complex IT infrastructure which is responsible for
- backup data
- restoring data
- (high) availability of systems , data and applications
- security of data and processes
- good performance of data transactions in this whole infrastructure
Just to name a few and this in itself is a complex environment which is made even more complex by the constant
reorganisation of the IT departments which take place roughly every 3 to 5 years.
Now based on this experiences over the years I turn to the subject of CBDC's.
What I understand from it is that all individuals , the profit sector and non profit sector get a bank account at the central bank in my case the ECB.
So between ( roughly speaking ) 500 miljoen and 800 biljoen bank accounts will be created for this purpose at the ECB.
Now this is MASSIVE and HUGE !!!! . How do they ( the ECB ) want to manage in this very huge and complex environment issues as
- backup/restoring of data ,
- (high) availability of data and applications ,
- security of data and processes
- good performance of data transactions.
A very good example is the Christmas period where the week before Christmas you have huge volumes of financial transations per
second/minute/hour .
And since I read or hear nothing of this I have the impression based on my own background it is a very challanging mission to
implement CBDC at the ECB.
Now I know you did not work in the IT , but did you ever hear anybody in the financial companies you worked in ever hear about this ?
If you combine your objectives regarding CBDS's with what I see CBDC's is a bridge to far to accomplish in the next 10 years ahead.
On top of that to complicate it even more many IT personal/staff is going to retire the coming years so there is certainly
a lack of staff and expertise coming as well to implement a large and complex IT infrastructure at the ECB to setup CBDC .
In the middle ages bisshops were competing with each other who would build the largest cathedral, today we see central bankers
having the same kind of competetion the way I see it. I want to be the first Central Bank having implemented a CBDC but in the rush
to be the first they underestimate the issues I describe here.
I am interested what thoughts/insight you have to share.
What I noticed in the articles you publish on Gold Money and Schiffgold is that despite the fact you have worked all your life in the financial sector you also know a lot about history in relation to economics. I asume you did not study history as part of your education at school / university. So where did this interest of history come from and how did that develop over the years ? In one of your articles you discussed partly our "golden age" in the 17th century and on the Dutch TV I saw several a documentaries about it but never the Bank of Amsterdam was mentioned so it was funny you brought it up in one of your articles. Bert Huizinga the Netherlands
Welcome to Substack Alasdair, it is fast becoming the place for high quality and engaging writing. Glad to see you joining, I look forward to reading your articles from which I always gain new insight.
I too have recently come over to this platform. My first post is here:
https://diggingdeeperne.substack.com/p/from-small-beginnings