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Do you think there will be a resurgence of demand in bitcoin? I think the balloon and pop already occurred. I don't think it's worth it anymore. It was good while it lasted.
Do you think there will be a resurgence of demand in bitcoin? I think the balloon and pop already occurred. I don't think it's worth it anymore. It was good while it lasted.
Hi NJBest,
Its very instructive about money no matter what happens with it. Its very similar to what our banking system is now except that government mines electronic coins with debt and pays interest on it, and banks mine coins with loans and collect interest on it. So you get raped by the banking system as a tax payer and then you get raped again as a citizen who must use this as legal tender, and then you get raped again when you "borrow".
You clearly don't have an understanding of our economic system and/or accounting. The banks are not mining money. Nothing about a loan is "mining". A loan is a balanced transaction, along with interest.
And how does the bank rape you as a tax payer?
And no one is forcing you to use anything as tender. You can use peanuts, and no one will stop you.
When you borrow money (a balanced transaction), how are you getting raped? And who is raping you? When you lend money, are you raping someone?
I love this site seems to value bitcoins at $17.00 each, almost 6x what they are currently trading at on the open market. What a ripoff in general. Considering the average "service' are things like people sending you pictures of their cat and pretending to be a graphic artist, it's hard to take seriously anyways.
Bitcoins are hilarious. A good tax on people who don't realize pump/dump schemes, being ripped off, and/or have a real poor understanding of economics.
When in May it was $10 a coin, some people dumped it for some early profits. Then in June of this year people were championing it as the next real currency it hit $32 a coin, then people dumped it so it is now worth $3 a coin. Now people are trying to get rid of it and still recover their initial investment when they realized no one takes them.
It was funny to watch the wacko libertarians that pumped their life savings into bitcoins crap themselves when it dropped like a rock. The bitcoin forums are almost better then Spike TV in watching people hurt by their own stupidity.
You clearly don't have an understanding of our economic system and/or accounting. The banks are not mining money. Nothing about a loan is "mining". A loan is a balanced transaction, along with interest.
Then why don't you describe to me how it works. Explain to me how a dollar is created in this system. Explained to me how our money grows and shrinks.
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And how does the bank rape you as a tax payer?
When you can answer the above, I'll tell you. Though, I have explained it several times already.
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And no one is forcing you to use anything as tender. You can use peanuts, and no one will stop you.
TITLE 31 SUBTITLE IV CHAPTER 51 SUBCHAPTER I 5103
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.
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When you borrow money (a balanced transaction), how are you getting raped? And who is raping you? When you lend money, are you raping someone?
Find out how a dollar is made and you can answer that yourself.
Then why don't you describe to me how it works. Explain to me how a dollar is created in this system. Explained to me how our money grows and shrinks.
When the government "prints" more dollars, it balances this out by selling treasury bonds. This is a balanced accounting transaction. These bonds serve as collateral and must be paid back.
This is different than mining, where in mining, money would be generated out of thin air with no further obligation.
Can you be clear by what you mean when money grows or shrinks. Do you mean inflation/deflation? Or do you mean interest growth?
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Originally Posted by gwynedd1
When you can answer the above, I'll tell you. Though, I have explained it several times already.
Go ahead.
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Originally Posted by gwynedd1
TITLE 31 SUBTITLE IV CHAPTER 51 SUBCHAPTER I 5103
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.
All that says is that a creditor must accept the dollar and cannot demand gold or silver.
That does not mean that you cannot use peanuts to pay your mortgage. If you and your bank agree that peanuts are okay, you are allowed to use peanuts. However, the bank cannot demand peanuts, and if you are willing to pay with the dollar, the bank must accept the dollar.
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Originally Posted by gwynedd1
Find out how a dollar is made and you can answer that yourself.
How does treasury bonds have do with borrowing money and getting raped?
When the government "prints" more dollars, it balances this out by selling treasury bonds. This is a balanced accounting transaction. These bonds serve as collateral and must be paid back.
Except you left out where the dollars originally came from. Dollars are born when the Fed produces dollars from nothing. The Fed may have an infinite balance sheet which implies there is no limit to the money they can create.
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This is different than mining, where in mining, money would be generated out of thin air with no further obligation.
That is what banks do. They create money out of thin air in the fractional reserve system. When they do not become criminalized, then banks merely collect the economic free lunch as interest while driving up asset prices. With secured loans, its a great free lunch with the only obligation of collecting the principle of the loan. When they become criminalized, even the asset prices cannot absorb it but inflate the value to encourage more "loans"(print to promissory note) . So when the fraud takes down the system, the banks demand to be saved from themselves and are bailed out. If that is not out of thin air then I don't know what is.
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Can you be clear by what you mean when money grows or shrinks. Do you mean inflation/deflation? Or do you mean interest growth?
I generally speak of money supply. Prices can rise if the money supply remains the same and the supply of goods and services shrinks. So what inflated? The money supply grows and shrinks based upon the outstanding debt of the national debt and the private debts of the private sector owed to banks due to fractional reserve lending.
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Go ahead.
You didn't give me the answer. Federal Reserve notes are created when the Fed buys government bonds on the open market. (the law was changed in the 1930s from buying directly from the treasury).This will then become bank deposits which may be loaned out. Less the reserve ratio, this money will come back as a deposit, thus expanding the money supply. Ask people on the street if they know what the velocity of their money is. The money supply is what people think it is.
The problem is these "loans" are not contingent upon production and are secured by assets, made by God since 80% of money is created from real estate, not including monopolies and mineral rights. So essentially banks loan money from absolutely nothing, to something that can never reach 0 since its a means of production or natural monopoly power. Thus the free lunch, land rents discussed by the whole lot of classical economists end up going to finance. Its designed of course to purge the weak hands in finance if it becomes a criminalized bubble. Otherwise they quietly make money doing nothing.
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All that says is that a creditor must accept the dollar and cannot demand gold or silver.
It says that I must accept in the legal tender, not what ever I want. Why do you work on one side of the equation?
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That does not mean that you cannot use peanuts to pay your mortgage. If you and your bank agree that peanuts are okay, you are allowed to use peanuts. However, the bank cannot demand peanuts, and if you are willing to pay with the dollar, the bank must accept the dollar.
But not to the state that requires legal tender. Also it says I cannot demand to be paid in peanuts.
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How does treasury bonds have do with borrowing money and getting raped?
There is no reason for government's to borrow against their own credit. Its the bond behind the federal reserve note that makes the note valuable. There is no reason to pay interest on a national debt. The only debts required are to foreign interests.
The only good reason to issue debt is during full employment and to encourage some people to defer consumption, however there should be no government debt when there is full employment.
The real rape however is the fractional reserve system, loans for assets instead of productive capital, and the currently criminalized banking system of bailouts and free zero interest rate money for currency speculation and dollar carry trade now responsible for stagflation.
If you want stagflation explained that mystified the Keynesian economists for some odd reason, representing their failure of critical thinking, well I can do that too.
You guys are so silly. Bitcoins are for buying drugs, not investing.
Are you on drugs because we never said anything about investing?
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