“Digital currencies are a niche product that sometimes garners large headlines. But from the standpoint of analysis, the ‘currency’ or asset at the centre of some of these systems is not backed by other secure assets, has no intrinsic value, is not the liability of a regulated banking institution, and in leading cases, is not the liability of any institution at all.”
- Randal Quarles, Federal Reserve official.
“To paraphrase: "I work for the Fed. We create money out of thin air. It has no intrinsic value. And I resent bitcoin's intrusion into our domain.”
- Tweet by Deon Opperman, @deonopperman6, by way of response.
Credit to Morgan Stanley for having generated several thousand acres’ worth of publicity for their research note last week that described the prospect of a Jeremy Corbyn government as “riskier than Brexit”. Given that Morgan Stanley were also one of the larger lobbyists against Brexit, it is difficult to know quite how to take their advice, other than to treat it as pari passu with most other unsolicited Wall Street research, i.e. highly conflicted and self-serving. Mr Corbyn was certainly happy to take the fight back to Morgan Stanley. It’s just a shame that this isn’t a fight in which both sides can lose.
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