From: Boris Nikolic
To: "Jeffrey Epstein (jeevacation@gmail.com)" <jeevacation@gmail.com>
Subject: FW: DialogUE 204
Date: Mon, 09 Sep 2013 01:03:07 +0000
Attachments: BAIN REPORT_A_world_awash_in_money.pdf
Also some interesting info re money
B
From: Chishty, Sameer [mailto
Sent: Wednesday, August 14, 2013 6:32 PM
To: Boris Nikolic;
Subject: DialogUE 204
Fellow Dialogers,
Welcome to Breakout #204, The future of finance: Disrupting the big government/big banking cartel through monetary
financial exchanges. I'll be moderating our dialog and look forward to seeing you soon in Istanbul.
As a reminder, the context of our session is: "Fiat money is being printed by all of the major developed countries to
support unsustainable levels of public spending, undermining global confidence in the financial system. Is the lack of
sound, tradable, non-political store of monetary value a major drag on the global economy and growth? Are new
currencies (like Bitcoin) a feasible alternative to big-government/big-bank financial instruments?"
Thought I'd share a few articles to get people's thoughts flowing. Do feel free to share other pieces you think will be
valuable in the build-up to our dialog.
Here's one view on capital levels: The capital superabundance we see now has been building up since the end of Bretton
Woods, with acceleration due to computer technology and financial engineering. While central banks have been taking
extraordinary actions, some of this has been "trans leverage" (the government taking on private sector debt, as we saw in
the US) rather than a massive growth in total leverage. The buildup of capital over time begs the very interesting question
of the right level of capital for GDP growth — the market-clearing mechanism is really interest rates, which suggests
interest rates staying lower than recent historical norms on average for some time. The other question is whether we
need to "do" anything about the levels of financial assets or rather simply adjust to the new levels. Clearly these
extraordinary measures can't continue, but interesting to look at this issue from the angle of how people may be
overweighting current actions vs. long term trends. Attached is an article titled "A world awash in money".
A US perspective on public spending from Forbes: http://www.forbes.com/sites/joshbarro/2012/04/16/lessons-from-the-
decades-long-upward-march-of-governmentspendine
Nate Silver on sources of US government spending growth: http://fivethirt ght.blogs.nytimes.com/2013/01/16/what-is-
driving-growth-in-government-spending/? r=0
Short pieces on private money, including summary of Hayek's theory:
http://www.forbes.com/sites/realspin/2012/08/23/private-currency-competition-is-the-monetary-answer/ or
http://www.forbes.com/sites/peterferrara/2013/03/01/rethinking-money-the-rise-of-hayeks-private-competing-
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currencies/
Private money examples in Europe:
http://www.rolandberger.be/media/pdf/Roland Berger Point of view What about private currencies 20130527.pdf
An argument for stable private money backed by gold or silver:
https://www.bullionstar.com/article/private-currencies-future-money
Cheers.
Sameer.
Sameer Chlshty tTh> frit;
Partner, Bain & Company
30/F, One International Finance Centre I 1 Harbour View Street, Central I Hone Kong
tel: +852 2978 8886 mobile: +852 6893 0296 mailto: I web: www.baln.com
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