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“BTC Yield”
I have an investment opportunity for you. I have a bag, into which I have put £100. My offer to you is that you add £3 to the bag, and in exchange I give you 1% ownership of the bag and its contents (retaining 99% myself). Your first response might be that this seems like…
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Big Tech and the AI Bubble
A large fraction of the world’s stock market value is concentrated in a relatively small number of big American tech companies. Those companies are spending a lot on AI. If that investment proves uneconomic, how bad is it for them? I am not going to try to decide how likely it is that this is…
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QE Losses 2025
The accounts for the UK’s Asset Projection Fund for 2025 are released. Something that I did not mention in my last post is that the APF accounts are presented in a rather obfuscated fashion. Specifically, the Bank is the legal owner of the APF’s share capital; but the Bank is not the beneficial owner since…
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QE Losses and Bank of England Reserve Interest
There has been a lot of press coverage over the last three years over the losses that the UK government is incurring on its quantitative easing programme, and the related issue of the payment of interest on Bank of England reserve accounts. However it was not clear to me how these issues were related or…