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Topic: Why There Should Be A Bitcoin Central Bank - page 7. (Read 18313 times)

full member
Activity: 238
Merit: 106
...
Price of DJIA today ~17,100 (call it 17,000)

Return: ~24.7x in ~40 years.

Your chart has the CPI being at somewhere between one and three in 1910 (call it 1.1) and is at roughly 27 now (call it 28). That means the CPI has gone up by 25.45x in 102 years.

If someone had taken one dollar in 1910 when the fed was created, kept it in a mattress, then invested it in the stock market in 1975, they would have come close to beating 102 years of inflation in just 40 years and this does not count dividends which would be substantial (several percentage points per year).

Yes you could have beaten inflation over 100 years by investing a dollar from 1910 in 1975, because the ponzi scheme only started in 71 and we all know if you get in early in a Ponzi scheme it's great Smiley ... But get in after the peak and it's not so great Undecided

Thanks to central banks the current global money system is like musical chairs, yes the musics still playing and the players are still dancing around, but there's only one chair left, and there's a loaded gun on it, the game wont end well.

The most brittle aspect at the moment are the derivatives markets where all the book excesses have been pushed into.

Quote
There are five "too big to fail" banks in the United States that each have more than 40 trillion dollars in exposure to derivatives.  Today, the U.S. national debt is sitting at a grand total of about 17.7 trillion dollars, so when we are talking about 40 trillion dollars we are talking about an amount of money that is almost unimaginable.  And unlike stocks and bonds, these derivatives do not represent "investments" in anything.  They can be incredibly complex, but essentially they are just paper wagers about what will happen in the future.  The truth is that derivatives trading is not too different from betting on baseball or football games.  Trading in derivatives is basically just a form of legalized gambling, and the "too big to fail" banks have transformed Wall Street into the largest casino in the history of the planet.  When this derivatives bubble bursts (and as surely as I am writing this it will), the pain that it will cause the global economy will be greater than words can describe.
SOURCE: http://theeconomiccollapseblog.com/archives/tag/derivatives-crisis
newbie
Activity: 2
Merit: 0
I'm not sure if it's mentioned before.


FRB is not necessary for lending.


A borrower can just issue bonds or the similar like time deposits for raising the fund.
And the bonds are not used as the accounting units or medium of exchange like a currency.

Am I correct?
full member
Activity: 151
Merit: 100
Ah ... the ever expanding Keynesian economy!  Roll Eyes

Yes, untenable in a finite world.


Price of the DJIA in 1975 - ~690 (call it 700)
Price of DJIA today ~17,100 (call it 17,000)

Return: ~24.7x in ~40 years.

Your chart has the CPI being at somewhere between one and three in 1910 (call it 1.1) and is at roughly 27 now (call it 28). That means the CPI has gone up by 25.45x in 102 years.

If someone had taken one dollar in 1910 when the fed was created, kept it in a mattress, then invested it in the stock market in 1975, they would have come close to beating 102 years of inflation in just 40 years and this does not count dividends which would be substantial (several percentage points per year).
full member
Activity: 238
Merit: 106
Ah ... the ever expanding Keynesian economy!  Roll Eyes

Yes, untenable in a finite world.

donator
Activity: 1617
Merit: 1012
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.

Are they stealing from BFL customers and people who had funds in Mt. Gox too? 

Yes. The new money created by lending in fractional reserve banking drives its purchasing power from the theft of purchasing power held by everyone at the instant before the new money was created.

Glad to have helped you by increasing your level of knowledge.Wink
False. Money created by fractional reserve banking only increases the supply of money, it does not necessarily increase the rate of inflation (although there is a generally coloration). Inflation will occur when the rate of increase for the demand for goods and services exceeds the rate of increase of the supply of goods and services. 

Ah ... the ever expanding Keynesian economy!  Roll Eyes
full member
Activity: 151
Merit: 100
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.

Are they stealing from BFL customers and people who had funds in Mt. Gox too? 

Yes. The new money created by lending in fractional reserve banking drives its purchasing power from the theft of purchasing power held by everyone at the instant before the new money was created.

Glad to have helped you by increasing your level of knowledge.Wink
False. Money created by fractional reserve banking only increases the supply of money, it does not necessarily increase the rate of inflation (although there is a generally coloration). Inflation will occur when the rate of increase for the demand for goods and services exceeds the rate of increase of the supply of goods and services. 
hero member
Activity: 510
Merit: 500
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.

Are they stealing from BFL customers and people who had funds in Mt. Gox too? 

Yes. The new money created by lending in fractional reserve banking drives its purchasing power from the theft of purchasing power held by everyone at the instant before the new money was created.

Glad to have helped you by increasing your level of knowledge.Wink

Except you not have the same economy to begin with so you don't know how much money would have in the first place.  You are comparing apples and oranges.  You have no idea how an economy would operate in practice if everything were Bitcoin.  That is why this is experiments.  You still have criminals, fractional reserve banking, wars, etc.  Bitcoin is just one more tool that may influence things to certain extent.  Other discussions such as the world completely switching over to Bitcoin is just a though experiment.  people who think these are real goals and tie Bitcoin to their agenda are the ones that are distorting Bitcoin to the public.

With all the problems central authorities have the majority of people want them.  People naturally choose security over freedom all the time, up to certain limits and all the Internet protocols in the world are not going to change that.  It happens with Bitcoiners too, look at the commotion around the centralized Foundation and complaints to central authorities like the FTC and SEC.  people want alternatives to some of the things central authorities do so they can be pressured but at the end of the day they still want them for security.
member
Activity: 84
Merit: 10
★Bitin.io★ - Instant Exchange
Even I feel that there should be some kind of central and governing body over Bitcoins to prevent theft and make the necessary rules.

Someday, you will understand that the central and governing bodies are the greatest thieves of all.

I thought Robin Hood was the best. Hmm.
legendary
Activity: 3080
Merit: 1688
lose: unfind ... loose: untight
Even I feel that there should be some kind of central and governing body over Bitcoins to prevent theft and make the necessary rules.

Someday, you will understand that the central and governing bodies are the greatest thieves of all.
legendary
Activity: 3080
Merit: 1688
lose: unfind ... loose: untight
Fractional reserves allow banks to "create" money and essentially devalues money

Yes

Quote
however the amount that money is devalued is less then what can be earned by investing your money

No

Quote
so fractional reserve banking actually facilitates people to increase their wealth and standard of living.

Double no.

Quote
The only people who are negatively affected are people who have cash 'under the mattress' literately

False. Literally everyone is affected. The money that is created by FRB eventually ends up in the banks' coffers. Through this mechanism, if allowed to continue indefinitely, literally every tangible thing will end up the property of the banks.

Of course it won't continue indefinitely. Eventually, enough of the people will  overcome their indoctrination, and finally understand how thisevil scheme operates. And put an end to this travesty.
legendary
Activity: 3080
Merit: 1688
lose: unfind ... loose: untight
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.

Are they stealing from BFL customers and people who had funds in Mt. Gox too? 

Yes. The new money created by lending in fractional reserve banking drives its purchasing power from the theft of purchasing power held by everyone at the instant before the new money was created.

Glad to have helped you by increasing your level of knowledge.Wink
newbie
Activity: 28
Merit: 0
Even I feel that there should be some kind of central and governing body over Bitcoins to prevent theft and make the necessary rules.
full member
Activity: 183
Merit: 100
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.
Fractional reserves allow banks to "create" money and essentially devalues money however the amount that money is devalued is less then what can be earned by investing your money so fractional reserve banking actually facilitates people to increase their wealth and standard of living.

The only people who are negatively affected are people who have cash 'under the mattress' literately
hero member
Activity: 510
Merit: 500
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.

Are they stealing from BFL customers and people who had funds in Mt. Gox too?  I am glad we have Bitcoin to solve this stealing problem.  Man, I was worried.  I thought Bitcoin was only good for ending wars and replacing law enforcement with Roger Ver's Bounty system.  I learn something new here every day.
legendary
Activity: 3080
Merit: 1688
lose: unfind ... loose: untight
Fractional reserve is legalized theft. Period.
[
But who are they stealing from?

Everyone. Quite literally.

If you do not understand this, then you do not understand how fractional reserve banking works. Read the rest of this thread for the briefest of introductions to the topic.
legendary
Activity: 3080
Merit: 1688
lose: unfind ... loose: untight
Fractional reserve levels (mandated by the government) prevent thieves from getting greedy.

Prevents them from being _as_ greedy as they otherwise would. But still institutionalizes their theft. And still allows them -- through the evil mechanics of FRB -- to incrementally steal the entire wealth of the populace.
full member
Activity: 183
Merit: 100
Fractional reserve is legalized theft. Period.
I assume that you are implying that banks are the ones stealing. But who are they stealing from? The deposit-holders can withdraw their money anytime they wish so they do not lose out. If you are saying that it is stealing because of inflation, then the interest that banks pay traditionally is higher then the inflation rate and the rate that can generally be earned via investing is greater then inflation.
legendary
Activity: 2156
Merit: 1393
You lead and I'll watch you walk away.
legendary
Activity: 1260
Merit: 1002
banks are bad.
legendary
Activity: 1554
Merit: 1026
★Nitrogensports.eu★
Fractional reserve is legalized theft. Period.

Fractional reserve levels (mandated by the government) prevent thieves from getting greedy.
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