Dividing by Zero

“Dividing by Zero” represents a series of publications which included criticism of the existing monetary system and policies of leading central banks, drawing attention to the irregularities in the global market. Chapters of this publication also provide insight into the meaning of cryptocurrency system, analyzing its potential, directions and the time frame in which it could become an alternative to the existing monetary framework.

10. Rematerializing the Upper Limit of the Debt In Order to Be Renegotiated

It might seem unclear whether the influence of the USA comes from its GDP that is still as high as the real economy is in underprivileged shape, so there should be highlighted that most of the wealth produced in that country this way is, in fact, fabricated and comes from financial or banking yields. (Read more)

9. ECB Is Hiding Public Debt Instead of Stimulating Growth

All of the liquidity boosters made the euro more plentiful, which decreased its value, first of all against the dollar, causing it became cheaper in terms of interest rates, while on the other side these financial actions constitute the access of the unsound environment of public debt. (Read More) 

8. Medium of Exchange Rather than the Tool for Value Accumulation

Bitcoin is not a commodity money, nor a fiat currency, since it has no required price. It shares are not being backed by a material asset, since it has value only because economic actors agree to use it in cases where the internet facilitates exchanges between them. (Read More)

7. When a Rescue Plan is an Obstacle to Recovery

The Dodd-Frank Act was adopted after the 2008 financial crisis in order to enforce capital inflow and annual stress tests performed on large banks, whose insolvency may create risks to the global financial system, ensuring that they would hold out financial shocks. (Read more)

6. Zero Rates – a Symbol of Inefficiency and Nonsense

There are big differences in assets between a rate that goes from one to five percent, measured up to to those that would go from zero to one percent, since zero point  is mainly due to the fact that dividing any number by zero is not possible. (Read more)

5. Understanding Blockchain: The Main Objective and the Initial Challenges

One of the main principles is that the collateral must be revalued at standard time, such as daily or in every few hours, in the same way as the accumulation of contracts or open positions it is supposed to wrap, associated with the market price of the security on the market. (Read more)

4. Deflation —  Yesterday’s Problem; Inflation —  a Problem of Tomorrow

The increase in liquidity caused by Q.E does not wash out the real economy, but is largely directed towards the financial sectors. The EU benefits less from the wealth effect of an increase in stock market assets than in the United States, where pension funds or inducements make income more responsive to market conditions. (Read more)

3. Boom Supported by Nothing but the Debt Never Leads to Real Growth

After the crises governments have added billions of dollars to their public debt, and if we look at the previous data and at converted value of dollars from the historic to the current one we see that what has been done in the past eight years in most countries exceeds the amount of debt of the whole XIX and XX century. (Read more)

2. The Danger Zone – Where Nominal Yields Do Not Effectively Reimburse the Risk of Collapse

The ordinary interest rate is one that reveals the intercession among the current and the upcoming, while there is expectation of future prosperity, and this is particularly the reason why interest rates are the highest in the poorest countries, since the loss of time is negligible. (Read more)

1. There’s No Way to Be an Optimist while Zero Rates Appear

When the whole economy is flooded by inflationary cuts of the central banks, which offset deflationary barely pushed more and more violent and when, at the same time, figures related to bank ratios, unemployment, growth are more than just problematic, the reality is complex and hard. (Read more)