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Why the US Should Nationalize LIBRA

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Mark Zuckerberg’s October 23rd testimony before Congress on LIBRA, Facebook's’ proposed digital currency, has garnered much attention. I attended the hearing (I'm in the blue tie in the picture below) and thought both legislators and Zuckerberg missed the real solution to the problem.
























To understand why, let’s start with what’s really going on. Facebook created Libra in response to competitive pressure. Imagine a social networking platform with the four functions of money (store of value, means of payment, unit of account and a means of social control) imbedded. A social media platform with this functionality has the potential to significantly reduce Facebook’s reach, if not immediately, then ten years down the road. 

For more, see: Why the US Should Nationalize LIBRA https://link.medium.com/hUhQ43wFt1

How to Finance a Black Women-owned Business in 2020

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Maggie Lena Walker was the first female bank president of any race to charter a bank in 1902. Black women have continued down this path of entrepreneurship. According to one report, "the number of businesses created by black women in the United States alone is up more than 460% over the last 20 years, making them the fastest growing group of entrepreneurs in the nation."

Of course, we've known this for some time. We launched MinorityFinance.com in 1998 and noted that 65% of the inquiries from the site came from Black women. The key issue then, and now, is money: "according to the Diane Project, black female founders are only able to raise an average of $36,000 in venture funding, while start-ups owned mostly by white males have received on average $1.3 million."

We provide data-based advice and instruction, based on our years of experience, to help you over this hurdle. Our webinar provides information on the current state of Black women businesses. We provide…

Fully Adjusted Return Economic Forecast for 2020

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We are pleased to present our 2020 economic forecast incorporating social factors (Fully Adjusted Return). Tickets can be obtained at: https://econforecast2020.eventbrite.com

We have a track record of issuing unusually accurate economic forecasts:

In October 1998, in a petition to the Federal Reserve and the US Court of Appeals for the District of Columbia Circuit (Case Number 98-1459), Mr. Cunningham forecast the financial crisis that occured ten years later. (See: https://www.creativeinvest.com/OppositionToCitigroupTravelersMerger.pdf )

On June 15, 2000, we testified before the House Financial Services Committee and warned that ethical issues at Fannie Mae and Freddie Mac would led to their failure.

On December 22, 2003, our economic forecasting models signaled the probability of system-wide economic and market failure. See page 6: http://www.sec.gov/rules/proposed/s71903/wmccir122203.pdf

As we noted on Oct. 5, 2006, forecasting the development of cryptocurrencies: "competitiv…

Let’s break down investing by Katherine Wiles Sep 26, 2019 (Investing 101)

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(The article below was published on Marketplace. We have edited the piece to reflect our comments.)

"Buy low, sell high.” We’ve all heard the adage before. But investing in the stock market can be a big step. It can be confusing — even daunting — and the terms can make it feel like inside baseball. So here are some basics to know about investing in the stock market before jumping in feet first.

You don’t need a lot of money to invest in the stock market. While you should make sure your finances are healthy before investing, William Michael Cunningham, an investment adviser and CEO of Creative Investment Research, said directly purchasing stock from a company can be done with as little as $25 by buying a fractional share. (For more, https://www.moneycrashers.com/buy-stocks-without-broker/).

..Investing in funds, as opposed to individual stocks, is a good way for beginners to get started.

A mutual fund is a collection of investments in one portfolio account. The mutual fund takes i…

The FedNow℠ Service: The Fed's Blockchain?

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The Federal Reserve Board announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States.

This is a direct response to the threat posed by digital currencies and blockchain. According to one Fed official, "Last summer, the U.S. Treasury recommended that 'the Federal Reserve move quickly to facilitate a faster retail payments system, such as through the development of a real-time settlement service, that would also allow for more efficient and ubiquitous access to innovative payment capabilities.'” Sounds like blockchain to us, thus, we expect this new system to be blockchain enabled. (For more on blockchain, see: What is Bitcoin? How does it relate to blockchain? Henry Zhang, Creative Investment Research Impact Investing Intern. University of Toronto.  Online at: https://creativeinvest.com/crypto/bitcoinfaq.html)

As we noted in our paper &quo…

The Future of Money, Governance, & the Law. September 14 to September 15, 2019

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Let Us Put Our Money Together: The Founding of America’s First Black Banks

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We note with interest the publication of yet another book on Black Banks written by non-Black people. The most recent entrant, "Let Us Put Our Money Together: The Founding of America’s First Black Banks" was written by the Federal Reserve Bank of Kansas City.

What makes this book especially interesting is the lack of support that the Federal Reserve Bank of Kansas City has shown Black banks over the years.

In an article in Black Enterprise, we stated:

"it’s interesting that the Fed would write a book on black banks given their responsibility under federal law from over two decades ago to save minority banks in the face of the current decline...Congress enacted the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) under Section 308," which called "for preserving the number of minority depository institutions and offering technical help to prevent insolvency of institutions. The law also was geared to promote and encourage the cre…

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