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
Book: The Case For People's Quantitative Easing
Brad Mills Social Links