The First Mac Predates Modern Central Banking
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The First Mac Predates Modern Central Banking
12 years of zero-interest rate policies & then a sudden increase to 5.5% woke us all up to the Wall Street mantra : Don’t fight the Fed. I’ve been reading to understand the history of the Fed & found some surprising facts from these two books : The Repo Market & Broken Money. The US Federal Reserve Banking system is about 115 years old. It was created after the Panic of 1907. In October of that year, companies couldn’t borrow money because a trading firm called the Knickerbocker Trust went bankrupt trying to corner the copper market. Lacking any government help, J.P. Morgan (the man, the myth, the legend, but not his bank) arranged for a group of individuals to lend money to keep the markets operating. European countries had instituted central banks. It was en vogue like Panama Hats & frock coats, but the US had no central bank to coordinate a bail-out. So government formed the Fed, a group of 12 banks in different cities (two of which are in the same state of Missouri : St. Louis & Kansas City) tasked with deciding how much money to print & how much gold to buy to back up the dollars to stabilize markets. Only in the early 1980s did this change, after the US broke the gold standard & suffered stagflation in the 1970s. The Fed then shifted to a 2% inflation target, which has been the policy ever since. I wrongly assumed centralized banking & inflation-targeting were dated centuries old. But it’s less than 40 years old in its current form. The Apple computer predates the current incarnation of the Fed by nearly a decade. Inflation targeting occurred roughly at the same time as Microsoft’s IPO. |
Older messages
How Much Does it Cost to Use an LLM?
Friday, November 17, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How Much Does it Cost to Use an LLM? How much does AI cost? It
The Software Industry's Productivity Boom: Analyzing Revenue per Employee Trends
Monday, November 13, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Software Industry's Productivity Boom: Analyzing
Purchasing Patterns in Software : Positivity Punctuating Q3
Friday, November 10, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Purchasing Patterns in Software : Positivity Punctuating Q3
Top 10 Trends for Data in 2024
Thursday, November 9, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Top 10 Trends for Data in 2024 At the IMPACT Summit yesterday,
Only The Dogged Thrive : More Good News in Startupland
Tuesday, November 7, 2023
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Only The Dogged Thrive : More Good News in Startupland On the
You Might Also Like
[VIDEO] Meet the woman who built a $100m+ soda empire
Wednesday, September 18, 2024
Watch her incredible story design-2-header-newsletter Hi there, We're excited to share an incredible new episode of our podcast featuring Allison Ellsworth, the visionary founder of Poppy! 🌟 Meet
🔥 Swipe Right on User Growth!
Wednesday, September 18, 2024
🗓️ You Are Invited! AMA with Sandhya Ganesh, User Growth Product Lead at Tinder
Love To Build? Maybe Don’t Raise Capital.
Wednesday, September 18, 2024
Looking Back On Seedscout's Fundraising Journey ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
the simple technique that saved my biz
Wednesday, September 18, 2024
Read time: 1 min. 07 sec. Be honest: How distracted do you feel right now? Slack pings, 𝕏 doom scrolling, iPhone buzzing... We live in a world designed to steal our focus. And this sh*t is getting
Ramen Tools and Timesible
Wednesday, September 18, 2024
Comprehensive time and budget tracking tool for teams BetaList BetaList Daily Ramen Tools See what tools other indie makers are using Timesible Comprehensive time and budget tracking tool for teams Too
🌿 What’s Draining Your Productivity? You Might Be Surprised…
Wednesday, September 18, 2024
Staying healthy while working online can be a challenge
There's a new community of SaaS founders growing
Wednesday, September 18, 2024
MicroConf Hey Rob!👋 In just the first few days of its launch, The SaaS Launchpad 🚀 has seen an incredible response from the SaaS community! Over 110 SaaS founders and aspiring entrepreneurs have joined
the future of energy
Wednesday, September 18, 2024
uncover where key players are making their moves, the emerging markets to bet on, and the startups that should be on your radar as we approach 2025 Hi there, Our expert is breaking down emerging energy
Founder Weekly - Issue 654
Wednesday, September 18, 2024
View this email in your browser Founder Weekly Welcome to issue 654 of Founder Weekly. Let's get straight to the links this week. General Non-Obvious Signs of Early Startup Traction — And How to
🏆 He built a $100m ecomm brand
Wednesday, September 18, 2024
And he's teaching you to do the same Hey Friend , You've probably had that dream—the one where you wake up, finally in control of your time, working on your own terms, and building something