Global stock markets and commodity prices have been on a downward trajectory over the past month. Why? Markets have been spooked by mixed economic signals coming from the US and more hawkish sentiment from central banks (interestingly central bankers have rowed back on this following the turbulence - click here). They have also been concerned by the state of the Eurozone, with even Germany entering the economic doldrums. The Ebola scare has even been blamed for the turbulence of the past few weeks. However, the greatest fear in financial markets is of a slowdown in China. A slowdown in China means a fall in demand for commodities (hence the fall in commodity prices) and a fall in demand for other goods and services (even university education!). Could China's debt-fuelled construction and economic boom be coming to an end?
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.