Topic: Is there room for a State Run Cryptocurrency? - page 3. (Read 5389 times)
State would not be happy to see your OP, since that is very negative for the state.
Did you forget about your own claims dude? I was not talking about privatizing profits, which you obviously failed to see, but was talking about just one particular example of socializing losses, i.e. socializing bank debts. Nevertheless, I'm pleased that you finally looked at what Google says about this notion.
Your claim was that if FDIC fund was insufficient the Fed would print money to lend them. This is already not true. Credit comes from the Treasury who can not expand money supply
Even IF this was true, then its the FED that holds the debt not the public.
IF the FDIC is borrowing from the public then the public is holding debt making it an asset for the public (not a liability).
Debts & losses are not same things. Loss refers to income. Debt refers to asset / liability. You can't use these terms interchangeably unless you don't understand accounting
Please, if you have a point then explain yourself instead of giving straw men
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Is this your original claim? that if FDIC needs money. Fed prints money. Inflation follows. Taxpayers "pay the debt" of the FDIC via "debt socialization"
You might have noticed (well, you actually didn't) that I was talking about how socialization of debts works, and I specifically mentioned "in general". Regarding the FDIC, I don't know how much money they might potentially need, but if you insist, the answer is affirmative. In the worst case scenario, the sequence you described would necessarily lead to inflation (since the money "lost in debt" didn't disappear but just changed hands).
In the event that the FDIC fund is insufficient, the FDIC has credit at the Treasury. The Fed isn't even in the picture. Theres no protocol so an act of Congress is probably required to do what you are suggesting
Even if the Fed lends them money, then the borrower (FDIC) pays back the loan not taxpayers.
Do you know what the word "indirectly" means, which I used in respect to ordinary people paying for the bank debts? What regards the real world evidence of debt socialization, Google is your friend (I hope you understand that you are presently not in the position of asking me to prove you anything).
LOL. You made the claim so you prove it. Prove that taxpayers pay for bank debts.
I guess you don't know anything about accounting.
You can't even get the concept right. Its "privatized profits, and socialized losses".
Did you forget about your own claims dude? I was not talking about privatizing profits, which you obviously failed to see, but was talking about just one particular example of socializing losses, i.e. socializing bank debts. Nevertheless, I'm pleased that you finally looked at what Google says about this notion.
I've been thinking about this lately a lot: How could a state be run with Bitcoin when it's soooo volatile? isn't a solid stability in price a necessity for a currency be realiable? what is the purchasing power of 1BTC without the references on FIAT?
When speculative demand ends and as adoptions increases, BTC is expected to become less volatile.
If a state uses a crypto it won't be bitcoin. Bitcoin is volatile because its speculative.
The Fed operates a big clearing system. If anything they'll use blockchain technology to run this clearing system. USD is legal tender and that wouldn't change. What changes is that users have option to hold the crypto USD in their own wallets and transfer it digitally without 3rd party
I've been thinking about this lately a lot: How could a state be run with Bitcoin when it's soooo volatile? isn't a solid stability in price a necessity for a currency be realiable? what is the purchasing power of 1BTC without the references on FIAT?
When speculative demand ends and as adoptions increases, BTC is expected to become less volatile.
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Is this your original claim? that if FDIC needs money. Fed prints money. Inflation follows. Taxpayers "pay the debt" of the FDIC via "debt socialization"
You might have noticed (well, you actually didn't) that I was talking about how socialization of debts works, and I specifically mentioned "in general". Regarding the FDIC, I don't know how much money they might potentially need, but if you insist, the answer is affirmative. In the worst case scenario, the sequence you described would necessarily lead to inflation (since the money "lost in debt" didn't disappear but just changed hands).
In the event that the FDIC fund is insufficient, the FDIC has credit at the Treasury. The Fed isn't even in the picture. Theres no protocol so an act of Congress is probably required to do what you are suggesting
Even if the Fed lends them money, then the borrower (FDIC) pays back the loan not taxpayers.
Do you know what the word "indirectly" means, which I used in respect to ordinary people paying for the bank debts? What regards the real world evidence of debt socialization, Google is your friend (I hope you understand that you are presently not in the position of asking me to prove you anything).
LOL. You made the claim so you prove it. Prove that taxpayers pay for bank debts.
I guess you don't know anything about accounting.
You can't even get the concept right. Its "privatized profits, and socialized losses".
I've been thinking about this lately a lot: How could a state be run with Bitcoin when it's soooo volatile? isn't a solid stability in price a necessity for a currency be realiable? what is the purchasing power of 1BTC without the references on FIAT?
I think it is a good idea and could work it the developers are trustworthy and competent. There would need to be real discussion in depth of the plans and benefits to sell the idea. If your going to go this route you need real planing and infrastructure already in place because this isn't going to be an experimental currency.
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Is this your original claim? that if FDIC needs money. Fed prints money. Inflation follows. Taxpayers "pay the debt" of the FDIC via "debt socialization"
You might have noticed (well, you actually didn't) that I was talking about how socialization of debts works, and I specifically mentioned "in general". Regarding the FDIC, I don't know how much money they might potentially need, but if you insist, the answer is affirmative. In the worst case scenario, the sequence you described would necessarily lead to inflation (since the money "lost in debt" didn't disappear but just changed hands).
In the event that the FDIC fund is insufficient, the FDIC has credit at the Treasury. The Fed isn't even in the picture. Theres no protocol so an act of Congress is probably required to do what you are suggesting
Even if the Fed lends them money, then the borrower (FDIC) pays back the loan not taxpayers.
Do you know what the word "indirectly" means, which I used in respect to ordinary people paying for the bank debts? What regards the real world evidence of debt socialization, Google is your friend (I hope you understand that you are presently not in the position of asking me to prove you anything).
Risk-free interest? In a bank? Are you kidding?
If you pick a large bank, your deposit is within the limit for federal insurance, I guess you could say it is risk-free.
So, if the FDIC runs out of money (because of multiple bank-runs), the U.S. government will print as much money as necessary to cover the FDIC deficit, thus making the taxpayers pay all the debts.
How do you figure taxpayers pay?
How dare you ask me questions now having not answered my own?
But never mind, I know that you can't answer anything coherent, so it doesn't matter. Regarding the taxpayers money, it is called socialization of debts, when ordinary people ("taxpayers") would indirectly pay for the bank debts by lowering their standard of living through inflation since the government would print money to cover the debts (this is called seigniorage, i.e. "a right of the lord (seigneur) to mint money" from French).
What does this have w FDIC running out of money? FDIC has $500B line of credit @ Treasury.
Are you talking about QE "printing money"? Please show inflation if thats what you claim.
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Is this your original claim? that if FDIC needs money. Fed prints money. Inflation follows. Taxpayers "pay the debt" of the FDIC via "debt socialization"
You might have noticed (well, you actually didn't) that I was talking about how socialization of debts works, and I specifically mentioned "in general". Regarding the FDIC, I don't know how much money they might potentially need, but if you insist, the answer is affirmative. In the worst case scenario, the sequence you described would necessarily lead to inflation (since the money "lost in debt" didn't disappear but just changed hands).
In the event that the FDIC fund is insufficient, the FDIC has credit at the Treasury. The Fed isn't even in the picture. Theres no protocol so an act of Congress is probably required to do what you are suggesting
Even if the Fed lends them money, then the borrower (FDIC) pays back the loan not taxpayers.
Please prove the concept of "socialized debt" w real world evidence
Royal Bank of Scotland and others, gonna be interesting if you scots break away, then wales will want to i bet.
crypto, well it might work but scotland and england will be messed up a lot by the break up.
crypto, well it might work but scotland and england will be messed up a lot by the break up.
When everyone is using cryptocurrencies, there will be no need for governments.
Crypto-anarchy, or crypto-libertarian. Best way to describe said scenario.It would definitely be interesting to see what happens if this would occur, as I doubt governments would just step down and let the masses govern themselves...
When everyone is using cryptocurrencies, there will be no need for governments.
Crypto-anarchy, or crypto-libertarian. Best way to describe said scenario.It would definitely be interesting to see what happens if this would occur, as I doubt governments would just step down and let the masses govern themselves...
When everyone is using cryptocurrencies, there will be no need for governments.
Money is just a means to exchange things and not much beyond that. But you still can't buy power with money, for example (what governments are created for, i.e. to exert power upon people).
When everyone is using cryptocurrencies, there will be no need for governments.
Risk-free interest? In a bank? Are you kidding?
If you pick a large bank, your deposit is within the limit for federal insurance, I guess you could say it is risk-free.
So, if the FDIC runs out of money (because of multiple bank-runs), the U.S. government will print as much money as necessary to cover the FDIC deficit, thus making the taxpayers pay all the debts.
How do you figure taxpayers pay?
How dare you ask me questions now having not answered my own?
But never mind, I know that you can't answer anything coherent, so it doesn't matter. Regarding the taxpayers money, it is called socialization of debts, when ordinary people ("taxpayers") would indirectly pay for the bank debts by lowering their standard of living through inflation since the government would print money to cover the debts (this is called seigniorage, i.e. "a right of the lord (seigneur) to mint money" from French).
What does this have w FDIC running out of money? FDIC has $500B line of credit @ Treasury.
Are you talking about QE "printing money"? Please show inflation if thats what you claim.
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Is this your original claim? that if FDIC needs money. Fed prints money. Inflation follows. Taxpayers "pay the debt" of the FDIC via "debt socialization"
You might have noticed (well, you actually didn't) that I was talking about how socialization of debts works, and I specifically mentioned "in general". Regarding the FDIC, I don't know how much money they might potentially need, but if you insist, the answer is affirmative. In the worst case scenario, the sequence you described would necessarily lead to inflation (since the money "lost in debt" didn't disappear but just changed hands).
Risk-free interest? In a bank? Are you kidding?
If you pick a large bank, your deposit is within the limit for federal insurance, I guess you could say it is risk-free.
So, if the FDIC runs out of money (because of multiple bank-runs), the U.S. government will print as much money as necessary to cover the FDIC deficit, thus making the taxpayers pay all the debts.
How do you figure taxpayers pay?
How dare you ask me questions now having not answered my own?
But never mind, I know that you can't answer anything coherent, so it doesn't matter. Regarding the taxpayers money, it is called socialization of debts, when ordinary people ("taxpayers") would indirectly pay for the bank debts by lowering their standard of living through inflation since the government would print money to cover the debts (this is called seigniorage, i.e. "a right of the lord (seigneur) to mint money" from French).
What does this have w FDIC running out of money? FDIC has $500B line of credit @ Treasury.
Are you talking about QE "printing money"? Please show inflation if thats what you claim.
Risk-free interest? In a bank? Are you kidding?
If you pick a large bank, your deposit is within the limit for federal insurance, I guess you could say it is risk-free.
So, if the FDIC runs out of money (because of multiple bank-runs), the U.S. government will print as much money as necessary to cover the FDIC deficit, thus making the taxpayers pay all the debts.
How do you figure taxpayers pay?
How dare you ask me questions now having not answered my own?
But never mind, I know that you can't answer anything coherent, so it doesn't matter. Regarding the taxpayers money, it is called socialization of debts, when ordinary people ("taxpayers") would indirectly pay for the bank debts by lowering their standard of living through inflation since the government would print money to cover the debts (this is called seigniorage, i.e. "a right of the lord (seigneur) to mint money" from French).
What does this have w FDIC running out of money? FDIC has $500B line of credit @ Treasury.
Are you talking about QE "printing money"? Please show inflation if thats what you claim.
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Is this your original claim? that if FDIC needs money. Fed prints money. Inflation follows. Taxpayers "pay the debt" of the FDIC via "debt socialization"
Risk-free interest? In a bank? Are you kidding?
If you pick a large bank, your deposit is within the limit for federal insurance, I guess you could say it is risk-free.
So, if the FDIC runs out of money (because of multiple bank-runs), the U.S. government will print as much money as necessary to cover the FDIC deficit, thus making the taxpayers pay all the debts.
How do you figure taxpayers pay?
How dare you ask me questions now having not answered my own?
But never mind, I know that you can't answer anything coherent, so it doesn't matter. Regarding the taxpayers money, it is called socialization of debts, when ordinary people ("taxpayers") would indirectly pay for the bank debts by lowering their standard of living through inflation since the government would print money to cover the debts (this is called seigniorage, i.e. "a right of the lord (seigneur) to mint money" from French).
What does this have w FDIC running out of money? FDIC has $500B line of credit @ Treasury.
Are you talking about QE "printing money"? Please show inflation if thats what you claim.
No, that was not my claim, you just see what your eyes want to see. I was not talking about QE "printing money". There is no inflation out of this, since the QE money doesn't leak into circulation. I was talking about how debts are socialized and the burden of them is passed on to the taxpayer in general (by means of inflation).
Risk-free interest? In a bank? Are you kidding?
If you pick a large bank, your deposit is within the limit for federal insurance, I guess you could say it is risk-free.
So, if the FDIC runs out of money (because of multiple bank-runs), the U.S. government will print as much money as necessary to cover the FDIC deficit, thus making the taxpayers pay all the debts.
How do you figure taxpayers pay?
How dare you ask me questions now having not answered my own?
But never mind, I know that you can't answer anything coherent, so it doesn't matter. Regarding the taxpayers money, it is called socialization of debts, when ordinary people ("taxpayers") would indirectly pay for the bank debts by lowering their standard of living through inflation since the government would print money to cover the debts (this is called seigniorage, i.e. "a right of the lord (seigneur) to mint money" from French).
What does this have w FDIC running out of money? FDIC has $500B line of credit @ Treasury.
Are you talking about QE "printing money"? Please show inflation if thats what you claim.
Jump to: