Can the dollar remain king of currencies? Paul Warburg Barry Eichengreen Morgan 1907

 

The greenback’s global dominance was forged on trade, alliances and institutions — now that era is at risk of drawing to a close

The individual with the strongest claim to patrimony of the global dollar is probably Paul Warburg, German-American scion of the Hamburg-based Warburg banking family. 

Bank of England stood ready to act as lender of last resort, guaranteeing the market’s liquidity and stability. 

It followed that any aspirations the US might have had to promote international use of the dollar were hamstrung by the absence of a central bank.  

Starting in 1906, Warburg became a tireless promoter of the creation of this institution.

Barry Eichengreen Financial Times 22 March 2025

https://www.ft.com/content/8a71dceb-806f-4681-80f9-416aa4c366ca

Nils-Eric Sandberg, Rydenfelt och lånetaket

- Sommaren 1991 hälsade jag på min gamle gode vän Sven Rydenfelt. Vi talade om fastighetskrisen som då startat på allvar, och den tanklösa överbelåningen, berättade Nils-Eric Sandberg i en artikel i DN 1996-10-18.

- Ja, det är ju märkligt att människor inte tänker på vad som hände 1907, sa Rydenfelt, (som jag, Rolf, hade den oskattbara förmånen av att ha som lärare i nationalekonomi i Lund).

https://englundmacro.blogspot.com/2010/07/nils-eric-sandberg-rydenfelt-och.html

The Panic of 1907: How J.P. Morgan Took Over Wall Street

https://www.gothamcenter.org/blog/the-panic-of-1907-how-jp-morgan-took-over-wall-street

He was also said to be a prime moulder of the U.S. Federal Reserve System ‘Fed’ as a sort of central bank. J.P. Morgan’s bank survived its leader, carve outs, crises as well as a merger into JPMorgan Chase.

https://link.springer.com/chapter/10.1007/978-3-031-62297-7_7

Banks create money when they lend. They also create money when they buy coffee machines

At the end of the transaction JP Morgan has a new coffee machine and Goodlife has $10,000 in its deposit account. 

Frances Coppola 3 September 2021

https://www.coppolacomment.com/2021/09/jp-morgans-coffee-machine.html

Banker skapar insättningar när de lånar ut

När en bank lånar ut skapar den ny likviditet för låntagaren och accepterar i gengäld en illikvid tillgång som fastigheter eller en immateriell tillgång som en kreditvärdering.

https://englundmacro.blogspot.com/2025/01/vad-ar-pengar-m1-m2-m3-osv-monetary.html

The Founding of the Fed

https://www.newyorkfed.org/aboutthefed/history_article.html