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