Bitcoin Forum

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So far...

The Cow wants NEGATIVE interest rates,she wants to print 200 billion a month instead of 80 billion,and we're  over 10% unemployment  now.

one thing you can always count on from the FED is lies and destruction.

wow, that guy's introduction, talk about an asslicking!

To call her "Yidden" in your post title is neither clever nor funny

To 'yell' the title using caps like that, isn't very polite either.. ::)

Why isn't Deflation such a wonderfull thing?

wow, not bad. the last days will be a funny ride  ::)

Deflation is a wonderful thing it discourages malinvestment, and savers benefit, there are 5 billion that live today in a world of scarcity that you predict will ensue with deflation, deflation isn’t bad, and it implies big change for the other 20% who will have to change there thinking and lifestyles.

Why is inflation seen as a good thing?

No the question here is why NEGATIVE interest rates are bad?

Hey guy you wanna lend me a bit of money? I'll pay 10% interest. Of course it will be negative interest so you will get back 90% of what you lent me. The more the better, I can pay back the day after!

Cool so bitcoin's deflation is diffrent because...?

From the first sight, negative interest will encourage lending, which in turn cause more investment/consumption. But the current problem is that there is no investment opportunity (except bitcoin) and no consumption motivation since most of the people have already accumulated too much debt

Instead of reducing the debt, the banks just want to raise the debt at exponential rate, and paying back those old debt with future debt, this is a Ponzi scheme without end,  since central bank could supply endless future money without any effort

The result will be a large scale default or hyperinflation once the money printing no longer works, but it takes time for people to realize the scam nature of inflative monetary policy

... I won't lend my Bitcoins to just anybody. If I lend them it will be to fulfill a need not a want.

Thats not the issue I am hinting... are you going to ask for interest?

It depends!
Interest is the cost of money. Generally an economy is complex, so complex it should only be measured not managed, in general if the economy is growing - increasing goods and services, there will be less demand for money, a rational player will save and not lend as the law of supply and demand will yield a higher return from saving. If the economy is shrinking and the demand for goods and services is unsatisfied, there will be an increasing demand for goods and services and thus a demand for money with interest.  

Wont this cause everyone to rush to hard assets like gold and real estate?

or Bitcoin?

...or fine art....or Copper Penny hoards. Bitcoin I thought was a given.  ;)

Just bought a lot of forever postage stamps. I bet the postal service will jack up the postage also. Still got send some cards to friends and relatives, few bill payments also.

What do you guys think about the philately postage stamps, are they still hold value as collectibles or it's a deadwood hobby only?

wtf....

When I was at school I was taught that unused stamps were legal tender and could be used as money. Forever stamps only hold value if you use them (buy pre inflation use post inflation) so long as the post office honours them. Here in Canada, they were pulled of the shelf the day the post office announced a 40% increase last month.

You have the right idea Hayek I think it was proposed the idea of private issued tokens as money think StarBuks issuing a coffee token for fiat regardless of the fiat cost in the future it will be worth a coffee.

I do the same thing on a personal level whenever I see a token redeemable in the future for the cost pre inflation.

I make it simple for you :P
Assuming a bitcoin economy with a steady deflation of 2%. Would you lend me 10 BTC at -1% interest? why?

Most probably not, my goal is to preserve my wealth, the risk of default is not worth the marginal gain, now if you were my nephews friend asking for a student loan I would consider lending you the money. With no interest if you had the right attitude.

I will only consider working with my money if there is inflation. Any deflation = saving.

Would you be interested in recieving the above loan? what would you do with that money?

Let's be clear who we are dealing with in this Thaaanos creature:

As a rational player it would depend of a lot of variables.
Who is making the loan and why?
Do I have a job, or am I an entrepreneur or do I have a cash flow problem?

To buy a house: no.
To supplement my income: no, on second thought, maybe, what is my jurisdictions position on moral hazard?
As a loan to start a business, No, I’d consider a joint venture capital risk for labour risked.
For cash flow in a well established business, yes. If it made sense.

Me personally in my current position, I’d tell the lender 0% interest and a 5% stake in my venture or hit the road.