The Bundesbank is to repatriate a large chunk of its substantial gold reserves held in New York and Paris (click here for story). Two questions immediately spring to mind. Why do central banks still hold large amounts of gold even though currencies are no longer tied to gold? Why is the Bundesbank pulling its gold reserves back to Germany? Some analysts see the Bundesbank's move as a sign of an impending currency war. Others see it as the world moving towards a de facto gold standard!
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.