Ah, I see - the sky is falling, the sky is falling. Give us all your money or the sky will fall...

In Iceland a referendum took place and the people of Iceland voted to let their banks fail on a massive scale. Is civilization in Iceland destroyed? Is Iceland rushing in another dark age? But whatever...

Nope, it is not a market failure. Markets worked as expected. Government didn't. It is a government failure. Government were too scared to let the market do its job. Government were too scared to let banks fail. Governments in the US, UK and EU simply surrendered to racketeers. Now the taxpayer has to pay for the losses banks incurred by speculating on real estate markets.

Wrong! The shareholders have full control. Not all shareholders of course, but the one that are holding the controlling stake. These shareholders simply do not care how profitable are their banks because their profit is in the form of ultra cheap, unlimited, endlessly revolving, and barely guaranteed loans for their firms and related businesses!

It is not failure. The top employees in the banks act upon direct instructions of the owners of the banks!

Yeah, stick to government's fiat money. You'll have certainty for sure. Don't push people to Bitcoin.

Let the people decide for themselves what they need and what they don't. Don't use inflation to 'show' them what they need or to force them to act! People are not fools that need their actions directed by forcing inflation punishment upon them!

I suggest reading some books before talking nonsense. Lack of inflation is not deflation! Monetary inflation is usual for the world economy only for the last 40 years since the gold standard was canceled in 1971 and the era of pure fiat currencies begun. Gold and silver were used as money for the last 6000 years. Do you really think that during all those 6000 years (minus last 40) people were insane? Do you really think there was no reason during all those 6000 years (minus last 40) to work or move, create art or businesses, or people became rich only by holding gold and doing nothing? Come on, raise your head up and take a look beyond your nose!

Inflation has no positive influence on economy. It is just unlawful tax imposed by the government that can and should be easily removed from our everyday life. Get over this.

You don't know what are you talking about, do you? What I'm talking about is a very basic legal principal that exists in every modern legal system since the times of the ancient Roman jurisprudence! Do you think UK is an exception?

Bitcoin CAN NOT get solid legal foundation because there is no precedent. If Bitcoin has to be regulated new laws has to be created from scratch. The law has to follow Bitcoin and not vice versa! Asking FSA for permission to trade Bitcoin is the same as asking the coachmen syndicate for permission to assemble and drive the first automobile just after the modern internal combustion engine was invented back in 1862... It is quite obvious what answer you can expect.

The legal foundation of Bitcoin already exists and is indeed fundamental - Everything that is not forbidden is allowed! And this is the leading principal of the entire humankind progress.

Now, if OP's information is correct, a total regulatory mess is in the pipes. Not only reputable businesses but also not quite reputable businesses will give up using Bitcoin.

It is not, but who cares? They need to put you within a certain existing regulatory frame. The rest is just details. Why did you ask FSA for a permission to trade bitcoin in the first place? The only reason I can think of is if you are chasing cheap publicity! If you ask a question you get an answer. Good or bad, this is it. Now you have to do a lot of paper work if you want to stay... hmm... 'legal'. This is not a buy. This is a sell IMHO.

If there is any truth in what OP is suggesting then financial authorities are positioning themselves to regulate and tax bitcoin purchases as cross-border institutional investments.

Overlay manager is a firm that is managing your currency hedging against currency exposures, not only in EU. So, currency overlay is the process or practice of hiring such firms. But I've never heard about overlay currency. Bitcoin as 'overlay currency' sounds like overcoin to me.  

That is good. The planet has a chance to be saved.

Of course. This is the natural end of every bubble. There comes a moment when it can't be inflated anymore and it bursts. The bigger the bubble the dire the consequences.

1. If nobody is holding their money in a bank account because of the inflation how would banks find money to give credit? Looks like the central bank will print money and 'buy' from banks their junk loan portfolio?
2. So, it is worse than I thought. You are not forcing people to buy stuff but force them to speculate on the stock market?... Just to preserve the purchasing power of their money?... Isn't that insane?... BTW, why don't you check out what were the level of DOW, S&P or DAX 10 years ago, or NIKKEI 20 years ago?

One such example is Bitcoin. Bitcoin is a 'politically incorrect' invention. This is why I'm reading this forum. 

Forget the free-market theories and the 'classical' capitalism. They are dead. Capitalism was very ill during last decades and finally died in 2008. Now we have a neo-feudal society and the respective economy. During 2008 a coup-d'etat took place. The racketeers demanded 700 billion and threatened that 4 trillion will be evaporated from the economy in a single night if they don't get what they wanted. The US Government surrendered. After couple of years they demanded another 600 billion. They got what they wanted again. Now they want more... Some people prefer to name those rackets QE1, QE2, QE3...

Nope, brainwashed again... What you are using is the World Wide Web! The Web was invented in CERN, Switzerland by the British scientist Tim Berners-Lee in 1989.


http://public.web.cern.ch/public/en/About/History90-en.html

The work you're mentioning is published right after the WWII. Its goal is to prove the 'superiority' of free-market economy to government planned systems like those of Nazi Germany and Soviet Russia... Yeah, I don't read 'politically correct' theories... They are designed to serve the ruling class. If the ruling elite of the dominant economy (the US) manages to promote an author of a suitable theory from a neutral country so much the better. Lets not forget that right after WWII Austria was still a neutral country!

I have not. Have I missed something? I thought I've read every 'laissez-faire' theory that deserves reading.

It is actually very simple. As Marx put it your position in the society defines your convictions and beliefs.

If you have a lot of money, all you need is more freedom or liberty to spend them for everything you wish to suit your individual needs. The more things your money can buy the better for you. Unfortunately, this means more people with less money that are desperately ready to sell whatever they can sell - including their body, blood and organs!

If you have no money, all you need in the first place is food and basic necessities for you and your family. This, however, suggests limited scope for products and services money can buy - that is less freedom and liberty for the rich.

I don't see where is the genius of this 'brilliant' mind?

Do you mean saving triggered recession?!... That is laughable. That is nonsense, of course. Statistics clearly show savings rate is currently at its historical bottom!

As matter of fact, it is just the opposite. It is the brainless hyper consumption encouraged by mass hysteria, based on ever increasing debt levels during last 40 years, that caused distortions and bubbles in the economy. You can't inflate bubbles for ever. There always comes a moment when they burst.

By the early 1970s, as the costs of the Vietnam War accelerated inflation, Richard Nixon canceled the direct convertibility of US dollar to gold. Gold standard was canceled and the world entered the era of pure fiat money. Since then economy entered into downward spiral of vicious cycles. To sustain such a 'model' growth was needed at any rate! But... consuming more things you don't actually need is not growth, because they do not positively contribute to your physical, intellectual or mental condition!

So, what do you do to show there is growth when there is no growth? You start by changing statistics methodology to hide the unpleasant truth. When this is not enough, you start printing more money under the pretext of 'stimulating' the economy. You can use 'jerking' if you like instead of 'stimulating'... Does 'jerking' the economy actually change something? Next step is to artificially decrease the price of oil on relative base. Everything around us is OIL! By decreasing the price of oil you are again 'jerking' the economy. So, you press OPEC countries to increase oil production. But what do you do when easy oil is gone? What do you do when oil producers need to invest $80 to pump and ship 1 barrel of oil? This is where your rosy dreams and wishful thinking collides with the crude reality of a consumer based economy!

Of course, we all know what followed. Next step is to export 'democracy' on board of battle ships and planes to 'easy' oil countries you don't control like Iraq and Libya. What is the next oil pie that needs situation with human rights improved? Iran, Venezuela or Nigeria?!

It is high time our economy be changed from consumer based to resource based.

Again, that is laughable. Do you mean people will prefer to walk without cloths or shoes and die of thirst or hunger just to save their money?! Resource based economy means people will buy only those things they actually need. They will not be forced to buy things today just because their savings will be valued less tomorrow. It shouldn't be difficult to understand this! Monetary inflation is just another tax imposed by governments. A tax that is not defined by law. A tax they can change at their own discretion to serve their own hidden agenda. No, thanks. I don't need such a tax!

No offense, but did you read that?


If you like it I'm ready to contribute poscoin.com to this project. Just PM me and I'll gladly change DNS settings to point to your hosting account.

(note: I do not take solidcoin as more than a joke)