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 Stamps 00:00:25: Introduction from Brad 00:28:04: Brad introduces Frances Coppola 00:29:40: Central bankers might not know how the financial system works 00:31:05: How lending actually works 00:38:50: What bank reserves on the bank balance sheets do 00:46:30: Difference between fractional reserve banking and current financial system 00:57:05: Discussion on coming off the gold standard and how this changed how money works 01:12:02: How easy it is to create money through quantitative easing 01:20:50: The maturing of assets on the balance sheet 01:29:50: Preventing the collapse of assets in the Great Depression and 2008 01:34:00: Inter bank borrowing, lending, and settlement 01:44:20: The narrative behind how the financial markets responded to the COVID economic crisis 01:50:50: Is the Federal Reserve actually printing money? 02:00:35: Why the repo markets dried up 02:04:10: What happens to stablecoins during crypto crashes 02:07:35: Discussion on Celcius and crypto lending 02:10:05: Wrap up, thank you, and closing thoughts Links to Mentions in the Show London Interbank Offered Rate (LIBOR) Book: Fiasco Book: Central Banking 101 Frances Coppola Social Links Frances Coppola on Twitter Frances Coppola on Forbes CoppolaComment.com Book: The Case For People's Quantitative Easing Brad Mills Social Links Brad Mills Twitter Magic Internet Money Twitter Magic Internet Money Facebook Magic Internet Money Instagram