News 3/24/15Feds Urge Banks to Call Cops on Customers Who Withdraw $5,000 or More
But as investor and financial blogger Simon Black points out, last week, “A senior official from the Justice Department spoke to a group of bankers about the need for them to rat out their customers to the police.”
Assistant attorney general Leslie Caldwell gave a speech in which he urged banks to “alert law enforcement authorities about the problem” so that police can “seize the funds” or at least “initiate an investigation”.
As Black highlights, according to the handbook for the Federal Financial Institution Examination Council, such suspicious activity includes, “Transactions conducted or attempted by, at, or through the bank (or an affiliate) and aggregating $5,000 or more…”
--"War on cash intensifies" The reality is that banks are closing the loop of their whole FRB system, so that everyone is only playing game on that giant exchange (banking networks), if no withdraw will happen then no bank run is possible |
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Interesting topic, but I'm not interested in the bounty. You can have a look at my signature, it is based on some polls done here before and followed by modelling and calculations, but mostly from a store of value point of view
You can also do some poll in the main board to see how many people spend how many coins monthly and the average holding time etc...
I think spending have a less impact to bitcoin's value than holding, since the reduce in money's velocity is the most when people hold coins for years or decades. You can only spend all of your salary each month, but you can continuously increase your holding each month, that makes the effect of spending quite small comparing with the effect of saving
I have another analysis showing that in fiat money system, when saving is taking place, the money supply must increase by 10 fold to counter the reduction of money in circulation
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No country should have debt. It's as simple as that. Debt for a country is either stealing from the future or stealing from your debtors if the country currency goes under. Sure debt speeds up things for businesses, but who here trusts their country to always do the right thing.
Debt is very different from the view of a private person than the view of the whole society A private person can keep fiscal discipline and always first make more money then spend, so he don't need to take any loan. But in order for everyone as a whole to make more money, some money must flow into the society at the first place, and this new money is injected in the form of loan Before, new money is injected by newly mined gold/silver, but since the removal of gold standard, new money only enter the society in the form of loan, e.g. government borrow it from central bank and spend, company borrow it from banks and spend. Since each borrowed dollar carry an interest, it is impossible to repay the loan with existing money, so more money must be borrowed each year just to cover the cost in interest, thus the debt keeps going up Even the interest is zero, if economy expands and society becomes more wealthy, there will be more money needed each year, and those money can not be mined like gold as before, they must come into existence in the form of loan. In fact FED can purchase assets to issue money, that does not involve loan, but unfortunately they already ran out of assets to purchase, the only one left is bond |
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No one really knows when it will happen.. but it will eventually happen.
When this "collapse" or "crash" in the dollar happens in the US, the solution is how we respond. Martial law is an Obama response and would ruin us. The only option would be, is to move our global business operations back here. Open oil reserves and drill here. Stop the exportation of our food and goods and start producing for ourselves only. Consume what we produce as a self sustaining nation. Energy independence would save our country. If we sustain ourselves in every sector here in America, then we would value our own dollar here. Make our own goods and produce our own energy. We would eliminate the need for buying overseas and our dollar would be valued by us , not the world. SIMPLE
It is the export make USD worth something: Foreigners need USD to buy products/assets from US. If export stopped, huge amount of USD will become useless and sold by foreigners and the value of USD will crash |
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Those opposed to welfare are Fucked. We are headed towards a future where automation will allow for 95% of people not needed, and 5% of human labour will be all that's needed to generate the world's GDP. When we get there... you either give the people that "aren't needed" a welfare or prepare for a total catastrophe.
Is it possible that today's highly concentrated industry structure is caused by the fiat money system (Large enterprise get larger loans thus expand much faster than small enterprise and wipe them out by economy of scale)? Would bitcoin make things better because there will not be an easy way to get financing through credit expansion? |
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In fact most of the coins in cold wallets are almost like destroyed, they are not in circulation for a long time
The key is to remove bitcoins from exchanges, when coins on exchanges are getting less and less every day, the value will increase for sure, and an easy way is to purchase from exchanges and spend them
this is true only if there is interest in purchasing bitcoin, by normal people( the classic "average joe/josephine"/newbies), otherwise you can freeze as many bitcoin as you want, and the price won't rise too interest is the real key Yeah only real money flow can make a market rise, all other techniques are only smoke mirrors and short term pumps. Mass adoption or burst. Consumption is real money flow. You don't need other people, with 2 million bitcoin user, each buying and spending 10 bitcoin every month, there will be 10 million coins permanently occupied in circulation thus not available for others to purchase on exchanges, and currently the coins on all of the exchanges is maximum 1 million, so the coin price must rise at least 10 times to achieve that You might say that the interest of doing so is low. But wait a second, these 2 million bitcoin users all have certain amount of bitcoin holding, doing so will raise the value of their bitcoin holding by 10 fold, why aren't they interested? |
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Maybe someday in future, when everyone could produce everything they want with the help of a robot, trade will become unnecessary, then money will disappear. But due to human's limited life time, specialization is very possible to extend further, thus money will never disappear What a sad world would it be, it would basically mean that human cooperation is not anymore required. Making money is sadly seen as shameful is my country, because it means that "we eat too much of the pie, that is unfair". But when we think about it, money is the only force that make us act for the well being of strangers without being compelled to do so. Money is the reward for being helpful to someone else, this is often forgotten. Well, I don't think we should blame people for that, I must admit that this definition is not very legit in today's world. The definition of money has been corrupted, not because of "society" or "mankind" greediness, but by the very persons who defined themselves as sacred arbiters of value on behalf of the society. The money is a must because people need some kind of value token to do the trade, it should have universal acceptance, so fiat money is the closest candidate. It is this definite demand for transaction medium give fiat money value, and no matter how heavy the slavery is, people will still use it, since they don't have other choice However, if people managed to produce some other universally accepted value certificate, then that can be used as money, so bitcoin is really creating a new alternative |
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Somehow I always thought these things are really amazing and how it could actually survived so long and the bubble kept on getting bigger and bigger without blowing up. And imagine if these things were to really blow up some day, I wonder what kind of catastrophe we should be expecting. I don't know, I just can't imagine. And that is where bitcoin matters.
It's really amazing, but there is a reason: In commercial oriented society, people need some kind of value certificate to do the trade, it should have universal acceptance, so fiat money is the closest candidate |
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Haha I am not going to read through all my bank terms again but I doubt they have a disclaimer about fractional reserve banking, like "oh yea and if you try to withdraw your money at the same time as everyone else then we can't give you your money, sorry". But yea if we sign a contract actually saying this then they can do it as they want.
The loop has almost been closed, even theoretically they have the bank run risk, in reality banks already made that nearly impossible The whole banking network works like a large exchange, once you put your money in any one of these banks, it is just like putting your bitcoins in a large exchange The difference is: You can withdraw bitcoin any amount any time, but with banks, you can only withdraw cash to a limited quota each day on ATM. And when you do electronic withdraw from Bank A to Bank B, it is just like some internal transactions in this large exchange, it just moved some numbers from Bank A to Bank B, and in case Bank A are running out of numbers (where Bank B are running up on numbers simultaneously), they just need to borrow a bit from Bank B (LIBOR), these transactions does not affect banks liquidity. Even millions of people withdraw money from their banks and put into another bank, the banking system in a whole will not be affected Once they permanently removed cash withdraw option, then the loop will be totally closed, all the money is moving around inside banking networks, banks will always have money to deal with withdraw, bank run will never happen |
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I think the safest place to hide your private key is the blockchain, since the bitcoin network is immortal. Just need to figure out how to encode into some of the blocks
That's a pretty cool idea Johnyj, I should just follow your post history to read the good stuff you come up with. Unfortunately your typing is otherwise wasted in this specific topic as the OP is just another Lampchop troll. It is a pretty cool idea but then the private key would be in public (now people know to look for private keys in the blockchain  ) and then someone would probably eventually hack it and steal your money. Underground cold storage is probably the absolute safest. A private key could pick a total of 44 letters (base58) from several blocks' public address list, and organized in a way that only you know, should be quite safe, but I have not tried it yet Trying to data mine such 44 letters in the blockchain is impossible due to larger space of search (Each character have more than 58 possible position, larger than base58 itself) |
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I think the safest place to hide your private key is the blockchain, since the bitcoin network is immortal. Just need to figure out how to encode into some of the blocks
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If we need to reach 1 billion users to reach Stage 2, we're no where close to this 10-15 year roadmap. We barely have 2 million active users worldwide right now, and will barely crack 5 million by 2019: http://www.cnbc.com/id/102512655Need to cool it with the 1 billion users, let's keep our 2 million users and grow it from there... I also think that 1 billion users to be too ambitious, 50 million will be remarkable in 3-5 years |
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It does not matter, as long as government can borrow trillions of money from FED and pay back the debt, and as long as the dollar they borrow have same acceptance as previous dollar
The only thing could crash all these is the dollar's acceptance, if dollar is still accepted anywhere, then this game could continue. And what is going to prevent dollar from being accepted everywhere?
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The other members of E.U. must kick out Germany.
Then there is nobody left to rob from and it will immediately collapse. The whole point of the current ongoing european QE is to rob a wealthy country and then give that money into loan to : Portugal,Spain,Greece,Italy,Cyprus and other socialist countries who can then give it to lazy fat TV-watcher welfare dumbasses. Jobless rate is going higher and higher even with the stimulus that they are so proud of that it works, no it doesnt, it will go up until eventually the hard working people will be taxed 99.99% and the lazy welfare leftists will enjoy free meal and other free stuff. Banks robs everyone, if other countries left, then German government will be debt-laden, just like in US. If other countries stay, people could blame some countries like Greece or Spain. In fact, without debt-laden countries buying lots of things from Germany, German people can not make a net profit Anyway, they will all be robbed by ECB, working hard or not working, does not matter. It seems the southern European people are much wiser and they know how to live like bankers: Only consume, no work  |
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The volatility with bitcoin is caused by people using unstable fiat money as a standard unit of value. If they use bitcoin as standard, they will see how unstable fiat money is
People have been misled for decades by these so called "mainstream economics" and they don't even know if any part of it is true. (In fact in bitcoin economy, everything seems to be different than mainstream economics predicted: When bitcoin price is higher, people spend more, when price is lower, people hoard more)
The dollar doesn't buy 80% less than a little over a year ago. I hate to say this, but the evidence does point to some volatility in Bitcoin's value, which is to be expected with such a young and relatively unproven technology. The dollar's value remains stable because people regard it as a standard unit of value, it is mostly a psychological phenomenon In fact dollar has been produced 5x more than 2008, but its purchasing power stays relatively stable instead of shrinking by 5x, just because most of the people regard fiat currency as a unit of value: When they see 5x more money comes out of FED, they will not think that now their goods worth 5x more USD, they think that there are 5x more money to make and they can be 5x more rich It is this psychological barrier maintained the value of USD, so that no matter how much USD FED print or destroy, one dollar's purchasing power remains relatively stable When people start to use bitcoin as a universal unit of value, things will change, other currency will start to fluctuate and bitcoin's purchasing power will be steadily increase year over year |
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In fact most of the coins in cold wallets are almost like destroyed, they are not in circulation for a long time
The key is to remove bitcoins from exchanges, when coins on exchanges are getting less and less every day, the value will increase for sure, and an easy way is to purchase from exchanges and spend them
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I've heard the claim that infinite demand for money allows increased supply without triggering inflation, but it's usually used to justify money printing, so that's an interesting idea. However, both sides miss something important when using this argument: The supply of goods and services doesn't change as a result of a higher money supply (although a higher money supply can temporarily drive increased production). The more dollars there are chasing limited goods, the less it is worth.
It doesn't matter if society realizes this is happening, they do understand on some level or another that buying power is falling when prices rise.
You can't really blame banks here though. Fractional reserve banking is, as you say, a natural phenomenon, but, at least so long as there are reserve requirements (either by fiat or necessity--to maintain solvency), private banks can only *multiply* real currency, not mint infinite new currency. The amount of real currency created by central banks directly controls the money supply, therefore, central banks *over the long term* are always to blame for inflation.
In today's world, production capacity is just like the demand for money, is almost infinite. With more money invested, there will be more goods and services produced, to make inflation in check, or even trigger deflation, due to more products and non-changing demand As soon as there is some profitable goods, money will flow in like flood and mass produce those goods immediately. We have seen such kind of dramatic change in industry landscape of bitcoin ASIC miner. It is jaw dropping that during a very short time of 2 years, all the last several generations of semiconductor processing node has been passed and now we are tapping the newest processing nodes which are still in laboratory phase So it seems no matter how much money is printed, there will be corresponding goods/services generated quickly. But the problem is on the ownership: All those newly created money belongs to some private banks, they give nothing in exchange for those money. That created a loophole in the financial system, so that banks will eventually claim everything's ownership by just printing money |
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If alien come to earth, they will be shocked by the fact that human on earth will starve just because money printer is not working
Or maybe because it's printing too much. Now, how could we live without money? If I go to a restaurant without money, how do I pay? Or would they feed me for free? Free beer, too? Indeed, the concept of money has been around for thousands of years, and after the society split into many specialized industry branch, money as a universal transaction medium facilitate trades between people, people don't know how to live without it, it is like air and water Maybe someday in future, when everyone could produce everything they want with the help of a robot, trade will become unnecessary, then money will disappear. But due to human's limited life time, specialization is very possible to extend further, thus money will never disappear If money is always needed, then the best we can do is to make sure it distributed based on the fair trade principle: Market decide its value and its cost is close to its face value |
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