Topic: Gold collapsing. Bitcoin UP. - page 1061. (Read 2032266 times)

interesting article by Edmund Moy:

http://www.moneynews.com/Ed-Moy/Fort-Knox-gold-bar-audit/2014/06/06/id/575519/

+4
You know you it's a brilliant idea when it seems so obvious in hindsight.  Well done Coinsafe!

tell me you could've predicted this in 2008 unless you were intimately tied into the Fed:

"what i failed to do is distinguish btwn pre 2008 and post 2008.  knowledge is gained thru experience"

I'm not sure who coined the following expression but it seems accurate:

"Good judgment comes from experience. Experience comes from bad judgment."

what i failed to do is distinguish btwn pre 2008 and post 2008.  knowledge is gained thru experience; lots of honest traders and in fact the entire world, were flabbergasted by the extent of the moral hazard inflicted on our money supply to bail out the criminals in 2008. there's no way that could've been predicted, let alone know that it would work.

Libor effects everything; it is the cost of money.  mind you, it wasn't the only thing being manipulated. but it was one of the key metrics whose manipulation prevented a total meltdown of the banks.  a great example of the direct fleecing was the interest rate hedges sold to municipalities pre 2008.  several of them went bankrupt as interest rates have continued to go down instead of up as they were advised to bet by their Wall St advisors.  many had to cough up billions to cover interest rate swap losses.  they are still trying to recover.

If you knew this why didn't you ride the bubble?   Also LIBOR is only interbank.   It shouldn't affect you

no, indirect losses via stocks and bond shorts.  you have to realize that in a manipulated market like this dependent on Fed liquidity, ALL assets begin to correlate as 1.  everything gets pumped up into bubble territory.  as one who USED to believe in free markets (naively) i, and many others, got lured into the short side expecting bubbles to correct.  however, the Fed and it's manipulative banks, don't tell the world that they are going to step in and provide free cash to the reckless to save all their speculative investments. until you understand this, you're just fresh meat for them to chew up in short squeezes.  now i, and most, have caught on and one day they will be left to crash their own system.

Bitcoin is essentially my new short on the USD system.

How did you money from LIBOR manipulation?  Are you a bank?

$370M to settle Libor probes

http://www.usatoday.com/story/money/business/2014/07/28/lloyds-libor-settlement/13262057/

F*cking criminals. I'll tell you who else lost as a result of this criminality; me. Me on shorts that should have won were or not for the manipulation.

+3 looks like that cave man is moving up in the world 

+1 for a good idea

+2 for a *very* scalable business model

i gotta say, this is pretty darn genius:

https://www.coinsafe.com/#play-video-modal

Proof is existence could solve all these problems:

https://www.sciencenews.org/blog/scicurious/spiny-media-battle-highlights-importance-scientific-credit

“Given that Dodd-Frank is the law, we see little reason to anticipate meaningful change in the mortgage production or housing environment of the past four years,” they said. “We also see the statute's regulatory expansion as a dimension of persistent financial repression, which also includes abnormally low nominal interest rates."

http://www.housingwire.com/articles/30798-bank-of-america-merrill-lynch-concludes-dodd-frank-killed-housing

Argentina back in the news again. 3 days and counting:

http://video.foxbusiness.com/v/3700851449001/argentinas-game-of-chicken/#sp=show-clips

Oh geezers, 2 new words to fear, "Macroprudential Regulation":

http://www.ftportfolios.com/blogs/EconBlog/2014/7/28/the-feds-massive-power-grab#.U9a1U3KWNBk.twitter

Bitcoin adoption set to explode:

http://www.telegraph.co.uk/technology/mobile-phones/10995383/Should-the-26-Indian-smartphone-worry-Apple.html

Bingo

To demonstrate your point one simply needs to ask how much of the FED's balance sheet is backed by real physical gold? i.e. How many ounces do they have vs. dollars in existence.

The answer is no one really knows. The amount of physical metal has not been audited in a very long time, and even if they did that it is not clear how much of that has been lent out as collateral to primary dealers (i.e. gold no one else has claims to). In addition to that the number of dollars in existence is difficult to say because the FED and US government is required to back stop so many entities, it is not clear how much "liquidity" they would have to create "on demand", i.e. what forced future money printing has already been promised.

Note: This ratio information was quite clear when the FED was first created and the country was on a gold standard. The ratio of gold-to-dollars fell and fell and fell over time, until it finally broke in the 70s and since then no one has known the ratio with any clarity.

In bitcoin, all of this would be transparent and clear. In addition if a central government went too far past a 1:1 ratio, you can be sure smart people would remove as many coins as possible from the fractional off-chain system, to directly controlled on-chain coins. This would cause the ratio to become worse and worse and crash the system in a final bank run, after which the exit window closes and no one trusts that fiat anymore. Fear of such a run will force central states to remain honest.

I never said they will be successful, only that they will try.

Also, proof of liabilities in a way that is not easily gamed isn't nearly as easy as proof of assets.

Accountability (via proof of liabilities and proof of bitcoin funds) is possible rather easily. No need to withdraw coins in order to force non-fratctional reserves. At least not in theory.