Thinking Clearly about the Banking System

Frances Coppola (author of The Case for People’s Quantitative Easing) joins Brad Mills to break down the evolution and inner workings of the financial system. The two walk through the last 100 years of changes to central banks and monetary policy to arrive at the current state of banking in 2020 and beyond. This episode helps contextualize bitcoin in the broader scope of the international financial system by understanding the nuances around money creation and distribution.Time Stamps00:00:25: Introduction from Brad00:28:04: Brad introduces Frances Coppola00:29:40: Central bankers might not know how the financial system works00:31:05: How lending actually works00:38:50: What bank reserves on the bank balance sheets do00:46:30: Difference between fractional reserve banking and current financial system00:57:05: Discussion on coming off the gold standard and how this changed how money works01:12:02: How easy it is to create money through quantitative easing01:20:50: The maturing of assets on the balance sheet01:29:50: Preventing the collapse of assets in the Great Depression and 200801:34:00: Inter bank borrowing, lending, and settlement01:44:20: The narrative behind how the financial markets responded to the COVID economic crisis01:50:50: Is the Federal Reserve actually printing money?02:00:35: Why the repo markets dried up02:04:10: What happens to stablecoins during crypto crashes02:07:35: Discussion on Celcius and crypto lending02:10:05: Wrap up, thank you, and closing thoughtsLinks to Mentions in the ShowLondon Interbank Offered Rate (LIBOR)Book: FiascoBook: Central Banking 101Frances Coppola Social LinksFrances Coppola on TwitterFrances Coppola on ForbesCoppolaComment.comBook: The Case For People's Quantitative EasingBrad Mills Social LinksBrad Mills TwitterMagic Internet Money TwitterMagic Internet Money FacebookMagic Internet Money Instagram