Australians are starting to learn the truth about our ‘record breaking’ economy. It’s all been built on one big fat lie…you can borrow your way (indefinitely) to prosperity.
What is a financial system?
Well, it can be defined at a global, regional or firm specific level.
But generally, it is a system that covers financial transactions and the exchange of currency between investors, lenders and borrowers. In short, a system that tracks financial activity.
The systems are operated by financial institutions and are strictly regulated as they directly influence financial markets. Market stability through such regulation plays a crucial role in the protection of consumers’ financial assets.
A firm’s financial system is based on a set of implemented procedures that track the financial activities of the company, including accounting measures, revenue and expense schedules, wages and balance sheet verification.
Global Financial System
The global financial system is essentially a broader regional system that encompasses all financial institutions, borrowers and lenders within the worldwide economy. This includes the International Monetary Fund, central banks, World Bank and major banks.
All systems are made of intricate and complex models and compiled with financial services, institutions and markets that link depositors with investors.
Another component of financial systems are markets that trade in commodities, securities and other products that are traded according to general supply and demand.
Financial markets include primary markets, which provide venues for buyers and sellers to exchange bonds, and secondary markets, which provide a venue for investors and traders to purchase instruments that have been bought previously.
Read on below for the latest news regarding financial systems, both domestically and internationally.
What if everything we’ve been told about how an economy functions was based on a false premise? The shattering of long held beliefs is going to create enormous disruption to peoples’ lives.
The Aussie property market has had one of the longest runs in the world. Prices have gained a whopping 6,556% since 1961. But, 2019 is shaping to be a much different scenario.
While much of the global population may not have a bank account, they do have smart phones. And big tech could completely disrupt the banking services as they can provide services in exchange for your…
In Australia, according to a Reserve Bank of Australia (RBA) survey, in 2016 over half of payments were made with card, and only 37% in cash, down from 69% in 2007.
The US market has also fallen 10%. We underperformed the US market (by a huge margin) on the way up, yet, we have managed to match its performance — so far — on the way…
Ironically, the renewed interest in gold means gold is likely to become a victim of its own success. How so?
The fact that broad money supplied growth is now at the lowest point in decades tells you just how fragile the Aussie economy is. The RBA knows it too. That’s why in 2019, you should…
It is a much different scene for cryptos this November compared to a year ago. Yet, as we have written before, if you are dismissing cryptos based solely on bitcoin’s price, you are missing the…
The deeply ingrained culture of entitlement will mean greater demands on Government to fix the problem. But in the end, Governments with reduced revenues and growing debts, will need to make some tough choices.
Recently, regulators have been putting on the brakes. They have introduced measures — mainly aimed at investors — to curve household debt.
If job openings are greater than the total unemployed for the first time since 2000, you’d think: the economy is so good that this can only continue, right?
Fake money rarely survives a full market cycle. We doubt that the fake dollar will either…
This has been one of the longest bull markets in history. 2008 was a debt crisis and today, we are in more debt than ever before.
The important point NOW is that the Home Construction Index peaked in late January. Since then, it’s fallen 36% into late October. I believe this second bubble burst will be worse than the last one.