Hello lets say I have 4 addresses used on Electrum

But one is address number 1 (i.e, first one generated from this seed), another is address number 15, another is address number 100, and another is address number 2000.

I could scan for all these addresses by doing gap-limit 2000. But then synchronizing would take very long time. But in my case I know that address is 1, 15, 100, and 2000. So any way to just import those, without checking for all the other unneeded addresses 1-2000?

Thanks.

[One may have to prepare to wait 30+ years to ever get the same purchasing power gold currently has, again in the future.]

One may argue that the USD is -more- overvalued, but with wages what they are right now, CPI-inflation (and the price of gold) are both very unlikely to take off in the near future. The only way would be because of the influence of foreign central banks. One may have to prepare to wait 30+ years to ever get the same purchasing power gold currently has, again in the future.

Why?

Here:



Gold's recent collapse in value has done nothing when compared to the absolute slamming American workers have got since 2000. Right now, the average person simply cannot afford to accumulate any gold whatsoever. Meanwhile, gold is secretly near an all time high in value, once you take into account the deflation the dollar has experienced. This graph actually makes it look -BETTER- than it really is, as this measures wages vs. gold, as opposed to cost of employment vs. gold, which is a better measure of the total benefits a worker receives. I would have used cost of employment vs. gold, but there isn't enough historical data to have a good reference point. Anyway, the real cost of employment vs. gold is even worse, as people have been shifted to part-time and thus no longer get any benefits outside of wages.

Now one can speculate that gold is in fact cheap as it makes up a small portion of american's savings. However, this is not true either.



Its not quite as dire looking, but still, not very pretty. We're near a long-lasting resistance point that has only been broken once in history. And notice that corresponded to what was almost surely a bubble in the gold price, even when looking at the first chart.

In short, there is no way gold can rally right now unless foreign entities can suck out all the gold from the American economy, since Americans simply don't have the financial capacity to absorb any supply placed on the market.

Also, let me remind you of the absolute lack of correlation between the value of gold (in both charts) and recessions. Gold seems to hold a relatively constant -average- value whether or not the US moves into a recession or not, unlike the US Dollar. However, in return for its constant value, gold is much much more volatile. One may have to prepare to wait 30+ years to ever get the same purchasing power gold currently has, again in the future.

[Which is more trustworthy/comprehensive? Is there some better source?]

Hello all,

I am trying to determine how the cost of employment is changing year over year. In other words, if I wanted to hire the average American to do an hour worth of work right now, how much more/less expensive would it be than if I wanted to hire the average American to do an hour of work 2 years ago? Note: I'm looking for TOTAL COST. This means ALL the costs of hiring a person, including insurance, benefits, etc... NOT just wages.

Why do I want this? Because obamacare, among other things.

Now I've found two different places to get this information, and they give drastically different answers. The only logical possibilities are either (A) corruption or (B) I don't know what I'm looking at.

Observe:
http://www.bls.gov/news.release/eci.t01.htm (Source: US Agency)
These guys show the cost of employment going up about 0.5% each quarter, leading to a huge 2% increase in the cost of labour, or even more.

Compare to:
SUPER LONG LINK (Source: International Labour Org.)
These guys show a different story, and more volatile too. Also, there's a typo (lol). Its supposed to be 22.3 but its written 12.3 for 2011.

Which is more trustworthy/comprehensive? Is there some better source?

In other news, apparently the mechanics used to be making an assload of money but no longer do. The best jobs are technical, followed by financial. The worst jobs are hospitality related, with artistic jobs being a close second.

> Federal Reserve paying 0.25% on excess reserves.
> Banks lending reserves to each other at 0.08%.

WTF is going on here.

Sources:
http://www.bloomberg.com/quote/FDFD:IND
http://www.federalreserve.gov/releases/h3/current/

I was looking at the bitcoin and gold charts recently, and they're actually ridiculously similar, if on very different timeframes.

Check out a 5 year chart of gold, versus a 1 year chart of BTC.

Both started out very low, and rallied to a new ATH. Then, a crash, then two tries to hit that new high both of which failed. After the second fail, the prices goes into a downtrend. First there's a brief crash, and both create a sure bottom followed by a bounce. But, after some idling, the two got roughly in sync, with both tanking toward that recent low again, gold at 1210-ish and BTC at $360-ish.

What do you think will happen from here, and do you expect the two to move in the same direction from their low, or in opposite directions?

The Citizens United ruling states that "spending is speech". Ignore the "corporations are people" bit for now. Point is, that spending money is a form of speech, according to the US supreme court.

Also, slightly more dubiously, but still with fairly strong precedent, anonymous speech is protected under the free speech amendment. Its pretty much a given that one can make anonymous speech whenever, one can't be denied the right to speak because he or she did not present an ID, for example. However, there have been cases in which anonymous speakers have been compelled to release their identity after the fact if their speech was false and supposedly caused monetary damage to a third party.

Given this logic, doesn't it seem incredibly hard to legally justify AML laws, which in cases can specifically state:
"Required the verification of identity of purchasers..." (Anti-Drug Abuse Act of 1988)

Do you think there's any chance these laws could actually be eventually overturned if brought to the supreme court?

[died with the free markets.]

The phenomenon of "crowding out" explains lots of price action on the stock market. Crowding out is basically when the government goes in and starts buying up stuff, and borrows money to do so, draining liquidity out of the system, driving interest rates up.



As you can see, normally, around a war there is a period of no gains in the stock market. Note, NOT a crash. Just flatness within a range. Also there is typically inflation, although note in the past this was generally not money-supply inflation, but price inflation, caused by scarcity as resources are diverted to the war effort.

How can stock prices not bubble up when all that inflation is going on? Well, its partially due to uncertainty, which helps keep prices down. But its also due to crowding out: The government sucks up most the money, so not much of it is left for stocks. And the amount left, generally isn't invested in stocks, because companies have a hard time keeping up with the massive interest rates themselves, think of the internal rate of return. So the market remains flat, despite the inflation.

Then the government pays back the money at the end of the war, rates fall, and there's nowhere near as much demand for credit. So, its AFTER the inflation do stocks start making their big gains.

Also note, the inflation is generally permanent. In other words, once scarcity goes away, there has to be more money made in order to compensate for the increase in supply just to keep purchasing power flat; look what happened when they didn't do this: The Great Depression.

However, this is all old news. I'm saying that the phenomenon of crowding-out died with the free markets. When the Fed stepped in with ZIRP, there can be no crowding out since the rates are fixed at 0, and you can never run out of liquidity because the fed will just keep printing even more.

So, if there were to be a world war right now, not only would there not be a crash, but there would be a huge rally in the stock market, as all those bonds have to bought out with fresh money to preserve ZIRP. This flushes the system with liquidity, and also causes inflation. The stock market thus turns into an supply-inflation-protected savings account, as well as benefiting from the scarcity effect. Finally, with ZIRP, stocks won't have to compete with any rate whatsoever.

So that begs the question, why the absolute heck is the market selling off. I think it might be irrational fear, and people misunderstanding the new normal. BTFD.

[there's literally NO reason not to short gold contracts]

Shorting Gold ETFS/Futures/CFDs or another liquid & tradable proxy for gold is probably the absolute safest bet you can do right now.

Why?

Its clear to me that prices are manipulated downward. Banks simply won't allow a big upward spike in Gold prices for a multitude of reasons, not the least of which is that they stand to lose a huge amount of money if they do so. So, instead, they double-down on short positions accumulating more paper profits from the slippage of their own orders, eroding confidence, and increasing the problem down the road whenever they want to get out of the huge short positions.

Pretty much the bull story for gold is that suddenly gold prices will rocket upwards when these banks will cover their shorts. The answer is, they won't fucking cover their shorts. GLD is non-deliverable. You can't ever demand delivery of physical gold in pretty much any of the products I just listed. You can't arb these products. If physical got out of wack, then all that would happen is the demand for gold would further shift away from the products I just listed and into the physical gold market, further tanking the ETF/Futures/CFD price.

There's basically no reason to ever be long the CFDs except if you think in the short term that people will use them to speculate on "flights to safety." However, more and more people are recognizing that buying these contracts don't amount to flights of safety; in fact, they can actually result in you taking on MORE risk, since you're now assuming the counterparty risk of whoever issues the contracts. If you're a Russian, whose to say your futures will even be honored, even for non-physical settlement, if more sanctions are put on you? The value of gold is in its perceived value, its limited quantity, and its purpose as a flight to safety asset. Gold contracts still have a perceived value, but lack the other characteristics of gold. The more banks short the contracts, the less perceived value they have.

Because of all this, there's literally NO reason not to short gold contracts. Either everything is peachy, and gold continues falling slowly, or everything goes berserk, and banks have to quickly dump gold contracts, and it works, in which case you're in the red for a few days but you recover, or everything goes berserk, and banks have to quickly dump gold contracts, but people don't fall for it, in which case the contracts go to 0. It gets even better when you realize that you get paid to short gold contracts, since gold doesn't earn interest & USD does. This means that contracts are usually in a state of contango, making shorting profitable even if globex is flat.

/

Here: http://www.usdebtclock.org/

National Debt:                $17T
Treasury Securities:     $914T

AFAIK "Treasury Securities" are a synonym for "national debt." Then why are Treasury Securities like 50x the National Debt? Am I missing something?

when a company has cash on hand, it generally can either reinvest that money in the business (or keep it liquid, point is, the value is still locked into the business), or pay a dividend to shareholders, or buy back its own shares. Investors generally like it to be paid out because it gives them the freedom to choose what they want to do with their money. Obviously management would prefer to keep the money in the company, because with more money, they can either grow the company more, or pay themselves more, either of which generally results in making their own life easier. But, lets assume investors have their way and get management to agree to pay out some money. How should it be done?

The answer is usually paying a dividend or buyback. Lets compare those two options.

Dividend is pretty obvious. It takes a certain amount of money that the company owns and pays it out to shareholders in small increments each quarter.

Stock buyback is where the company takes the amount of money that it would otherwise distribute in a dividend, and uses it to buy its own stock, thereby raising the % ownership of all the stockholders.

The fact of the matter here is that these two approaches are practically equivalent. If you got a dividend, and didn't want the cash, so instead of taking the cash, decided to automatically re-invest the dividend, your ownership would increase by exactly the same % as if the company had just bought back stock.

On the other hand, if you wanted to keep your % ownership the same, you could easily have just sold shares if they did a buyback, and got the exact same % cash return as if they had just paid a dividend.

Okay, maybe you don't get "exactly the same", maybe there's some fees/spread on either end, but the end result is about the same. The difference with buybacks is that you don't have to pay taxes until you actually sell the stock, but with dividends, you've got to pay tax on the dividends no matter what.

Why then does any company ever pay a dividend? Why do preferred stock pay fixed dividends instead of promising fixed $ volume of buybacks? Hell, you could even structure a bond through buybacks if you really wanted.

Not gonna lie, this article influences this content.

First, let me say that I don't think indexes are socialism so long as people invest in them by their own free will. This is similarly false:

Indexation could work if it remained a satellite strategy, with say 10% of the money being managed through indexation, the rest being managed by active money managers. As such, it would be a parasitic strategy. Indexers would benefit from the price discovery work done by others without paying the costs associated with the process.

Since a money manager improves price discovery when alpha is obtained (i.e, buy low sell high means that you push the price up through buying when the price is low, and push the price down by selling when the price is high), the only investors that are helping with  price discovery are those that outperform the index, an outperformance which, of course, they are getting rewarded for, while those investing directly in the index are not.

But, the article does bring up an interesting point. Namely,

Active money management is essentially a ‘mean reversion’ strategy. That’s not so for indexation. In the indexation process, there is no attempt at price discovery. The only thing that matters is the relative size of the asset: the bigger the market capitalization, the more an investor should own. This means if the price of a large asset goes up more than the market as a whole, indexers have to buy even more of it.

When you're saying it that way, you realize that it really is quite weird, and opens the door for all kinds of market manipulation.

That seems like an incredibly odd system. Why not index by earnings, instead of by market cap? That way your index actually buys a larger % of companies with a low PE, than companies with a high PE, among companies with the same EPS?

Hi, I'm selling a script to manage your own investment site accepting Bitcoins! (HYIP)

For those who don't know, there are generally two type of HYIP script:
Ones with user panel where users register
Ones without user panel, just displaying addresses users deposit to.

I offer the best of both worlds. No register needed, but with a panel! Users visit and they get a unique deposit address. That deposit address is stored in cookies and they can see themselves earning in their user panel. They're given a secret URL to log back in again if they lose their cookie. This also prevents them from seeing other's deposits, something which some HYIP sites might not like for various reasons. 100% anonymous with users but with the professional feel of a user panel.

User panel is updated in real time so user's can see their coins grow right in front of their eyes. This might attract users to make additional deposits so they can see their money growing faster.

Script doesn't require bitcoind/cron jobs/mysql database to run. All you need is the capacity to execute PHP scripts. You could even run it on a free host, if you wanted to. Private keys containing user's coins are stored on server. Also, they can be emailed to you. They are stored in a format ready to be imported into blockchain.info's wallet, so you can then use their coinjoin feature to mix the coins to preserve the anonymity of your depositors.

I will host your HYIP for you too, on amazon cloud servers. If you choose this option you can host your own Bitcoind rather than relying on Blockchain.info's. If you choose this option I will continue to provide support for your site as long as you need. (Note: Amazon does not have a history of shutting down HYIP sites hosted on its servers).

I don't do HTML layout design myself, but I can integrate the script into a layout of your choice so long as the layout has all the necessary components for a dice site. Additionally, if you wish, I'll find you a cool looking design in the public domain and integrate it into that.

Contact me for pricing and demo site.

Want to sell ready-made dice site: Like Primedice, not like satoshidice (there is a built in wallet feature).

Includes:
Everything needed to prove fairness
Simple & Obvious User Interface
Secret URL to grant easy access to account... also option to pick your own secret URL.
Tie-In to Blockchain.info wallet
Chat
Support from Me with getting the site ready and working

Customizable options:
House edge
Bank Roll
Maximum bet and/or maximum profit
Confirmations required before deposit comes through
Confirmations required before withdraw can be requested

The dice script requires only PHP to run. Severs do not need MYSQL/BITCOIND/etc... to run the basic script. But if you don't have it, then you'll have to use blockchain.info's bitcoind.

I will host your Dice Site for you too, on amazon cloud servers. If you choose this option you can host your own Bitcoind rather than relying on Blockchain.info's. If you choose this option I will continue to provide support for your site as long as you need.

I don't do HTML layout design myself, but I can integrate the script into a layout of your choice so long as the layout has all the necessary components for a dice site. Additionally, if you wish, I'll find you a cool looking design in the public domain and integrate it into that.

Contact me for pricing and demo site.

Current membership tier: "Member"
Has approximately 100 activity.
Is trusted account; several trusted members have uptrusted the account in question.

Unique poster has been using the account. This account was not originally created with the intention to sell and has been used as a personal account for weeks.

Contact me if interested. Looking for 0.1 BTC, selling to highest bidder.

Wikipedia's answer was incorrect. I need the local experts to point me in the direction of this moon you speak of.

[Loans With Collateral: Maximum 1 BTC]

Hello, I have decided to try offering some short term loans for those of you in desperate need. Decisions should be typically made within 24 hours.

Loans With Collateral: Maximum 1 BTC
Collateral must at all times exceed 110% of the value of your outstanding balance or else I will try to sell it (think of it as a margin call). If you want to reduce this risk you can over collateralize. This is recommended. I decide what constitutes acceptable collateral.

1 Week: 5% Interest
2 Weeks: 10% Interest
3 Weeks: 15% Interest
1 Month: 20% Interest

All members eligible.

--

Loans Without Collateral: Maximum 0.25 BTC
Different members can borrow different amounts. Note interest rates are going to be pretty high here.

1 Week: 10% Interest
2 Week: 20% Interest
3 Week: 33% Interest
1 Month: 50% Interest

Other: Not Available
Full Member: 0.05 BTC max
Sr. Member: 0.15 BTC max
Hero Member: 0.25 BTC max

--

You're always charged to the nearest week, rounded up. By "month" I mean 30 days. If you can't repay after this point you have to pay back at least interest and I will renew your loan. See how in collateral loans I give you better rates if you borrow for longer periods? That's because there's some overhead in setting up these loans. Notice how in non-collateral loans I do the opposite? That's because I stress if I don't see payment for a month  . After any given week you're welcome to make a partial payment which will reduce your principal & interest charged the next week. Borrower assumes shipping/tx fee/other costs like that.

If you want to stay private I won't give your details away so long as you meet the terms of the loan. If you want to exceed the no-collateral limit for your membership status try contacting me, maybe we can work something out.

--

PUBLIC Open Loans
Your loan won't be put here if you don't want it to be.

User: BitcoinTraders
Amount: 0.07
Address: 1Pktp5gCfi44WhNwgZV7oCtMMiWuJ8cwEA
TXID: 7c986f647d7c5c83046add8a0887848f89783ce7c49908f9aa882c927ced1814
Current Tier: 1 Week No Collateral (10%)
Expected Tier: 1 Month No Collateral (50%)

User: BuyMyDreamHome
Amount: 0.10
Address: 14e8c2CDcfSaFE7q46dcM41wLRt18eMJ8z
TXID: 71832bf298acdc0f36bd3c3c35ac4e4d8a57c77ca653ab06588a42e5c9179259
Current Tier: 1 Week No Collateral (10%)
Expected Tier: 1 Week No Collateral (10%)

User: GBattaglia
Amount: 0.05
Address: 128tavGJa8QfAnGiZLwfjWp57hn3q3HK5F
TXID: 5aab5899ad78aaf834c619779c6d7fe62f2b53473efb4f79c4bb63d5acccf088
Current Tier: 1 Week No Collateral (10%)
Expected Tier: 1 Week No Collateral (10%)

User: Jaaawsh
Amount: 0.03
Address: 15BJytM7EP2kRNYH17Xs9rikWxzWULeHC4
TXID: d37ff6bbbea8f48e11f068ca2f02e58359ff5de5f32088dbffb380188330bbd6
Current Tier: 1 Week No Collateral (10%)
Expected Tier: 1 Week No Collateral (10%)

User: justdave3996
Amount: 0.02
Address: 1D3TqZeXwVErzwAvk1NcUBY8bhq1HnDqrv
TXID: 08755df933c7d6cda4412950f88ed181584165ce963e09c34926f23e94e3ef4b
Current Tier: 1 Week No Collateral (10%)
Expected Tier: 1 Week No Collateral (10%)

Tax on assets:
You own $500,000 worth of land. Another guy owns $2,000,000 worth of land. He has to pay more taxes than you.
OR
You own $2,000,000 worth of equity in companies. Another guy owns $500,000 worth of equity. You have to pay more taxes than him
+ All similar schemes (council tax, window tax, bank deposit confiscations, etc...)

Tax on consumption:
This year you bought $75,000 worth of goods/services. Another guy bought $60,000 worth of goods/services. This year you have to pay more tax than him.
+ All similar schemes (sales tax, carbon tax, luxury tax, etc...)

Tax on income
Self explanatory

Tax on "Public Property"
this year you polluted more (by the government's measurement) than another guy so you owe more tax than he does. Rationale being that the public "owns" the air/water/etc... that you polluted, therefore you have to pay to do so.
+ All similar schemes (ex, developers have to pay to preserve X acres of land to develop X acres of land)

Which should be the primary method for the state to collect revenue?

1. Everybody should be aware that money is a form of deferred consumption, or another way of putting it, a form of debt. Money isn't any good by itself. You need to buy something with it. You're investing you're time to earn it, the products and services you sold to get it go out into the economy. You get nothing back but for money.

2. Time value of money is a misnomer. It should be "time value of utility." A computer you built and sold for currency thus had a timevalue. But you didn't use that time value, you gave it up. Instead, you got money.

3. Money needs to compensate you for that time value you sacrificed to the economy at large. True money naturally does this through deflation. As the economy you "lent" your product to increases it's production, so does your currency increase in value.

Etc... etc... thus deflationary currencies are not only benign, but also make a great deal of economic sense.

[OVERVIEW]

Hello people of the Bitcoin forum.

I have come up with a strategy for "leasing" BTC which I will be testing over the next several weeks. I believe I could potentially market a fund to follow this strategy. Below I will explain the details of the strategy (in terms of earning potential and risks, I can't give the strategy itself away, that would be no fun ). All I ask is that you tell me if you'd be at all interested.

OVERVIEW
Bitlease's business plan is somewhat akin to that of a bullion bank. An asset, in this case BTC, is leased to speculators through various means. At the end of the lease period, the BTC is returned, along with a USD payment. Bitlease's exposure to individual leasee' credit risk is negligible. Bitlease then purchases BTC with the USD we received. This BTC is then passed onto the user in the form of interest.

PLAN BASICS
Bitlease offers investors the possibility to deposit their BTC over 1 or more 60 day periods. During these 60 day periods each depositor will earn a variable interest rate. The interest rate cannot be determined until the end of the period, but is projected to be approximately 5 to 10 percent each 60 day period. The factors affecting the variable interest rate are discussed below. When users elect to withdraw from the fund, a 1% fee will be deducted on the amount withdrawn, not to exceed the interest of the prior 60 day period, to cover various fees imposed upon us.

WITHDRAW/DEPOSIT WITHIN A 60 DAY PERIOD
Users can also deposit within a 60 day lease period; however, the interest they earn may be significantly less for that 60 day period due to additional costs imposed upon us.
Users can also usually withdraw before the end of a 60 day period, however no interest will be credited to them for that 60 day period. This is not a guaranteed feature of the plan, but should generally be available.

FACTORS AFFECTING THE VARIABLE INTEREST RATE
 - A decreasing BTC/USD exchange rate over the course of the 60 period will cause interest payments to be greater. This is because, in general, leasees pay according to the BTC/USD exchange rate at the beginning of the period, but we can only exchange the USD for BTC at the end of the period as that is when we receive their lease payment. The inverse is also true.

- A large deviation between the BTC/USD exchange rates at various exchangers over the course of the 60 day period will cause interest payments to be lower.

- In general, higher interest rates at Bitfinex will cause the interest payments over the course of the 60 day period to be greater.

RISKS
You cannot hold BITLEASE or its managers or owners liable for any loss for any reason.

BITLEASE may be heavily exposed to the credit risk of any of the following entities:

BITFINEX
BITSTAMP
BTC-E
BTC.SX

Also, if stop loss orders fail to be executed for whatever reason, or if they were to be executed in a very thin market with horrendous slippage, depositor's principal could be impacted.

Thanks for any input. If any particular feature of the plan is confusing or disturbs you, I'd be interested to know specifics. But, if your simply wondering why I don't provide further details, it's for the same reason people generally don't release the source code for their proprietary software

Thanks for reading.

Edit: wrote this whole thing from a phone. Bear with the mobile fed links.

It's kind of obvious in a sneaky way.

You see when you look up us money supply you typically get this, the monetary base:
http://m.research.stlouisfed.org/fred/series.php?sid=BASE&show=chart&range=max&units=lin

But, this is actually more important for determining inflation in the short term:
http://m.research.stlouisfed.org/fred/series.php?sid=WCURCIR&show=chart&range=max&units=lin

Check it out. Whas the difference between currency in circulation and monetary base? Monetary base also includes demand deposits in the federal reserve. Demand deposits in the fed still bear interest. But unlike a normal demand deposit, the money is not invested or relent. Instead, its effectively destroyed. Until the depositor demands it back that is.

But, how can it pay a rate then? The answer is, it doesnt, not really. That rate is effectively a bribe to banks to give the fed permission to destroy that chunk of the money supply for a while. And currently it accounts for a huge portion of the monetary base. In fact, it accounts for nearly the ENTIRETY OF QE.

To me, that's a mixed message. Why bribe banks to destroy money when supposedly the entire point of QE is as so many people like to put it, "print money", or as the feds like to call it, "stimulate the economy."

In actuality it neither , nor was likely intended to achieve, either end. We've got it wrong, at least on the surface. The real purpose of QE was to decrease real reserve ratios. I'll get to why in a second.

Here's how people think the QE story works:
Government sells bonds. Banks buy bonds. Banks resell those bonds. Fed buys bonds sending newly printed money to banks. Bank lends money, government spends money. Money was just printed.

Here's how it really works:
Government sells bonds. Banks buy bonds. Bank knows that bonds don't count as a reserve asset, and knows that interest rates will rise because the fed said they would. Bank sells bonds. Fed buys bonds. Bank DOESN'T lend the money, it deposits it right back into the fed. Why? Because like bonds, loans to business and consumers typically depreciate as rates rise. Also like bonds they don't count as reserves. Not to mention the risk. So bank deposits money into fed who then bribes the bank to keep it there with their low demand deposit interest rate.

See how that works? No money is actually created. The government can spend the money it got from banks. The banks can't because it's locked in the fed demand deposit account that serves as a reserve so they have no incentive to ever lend to anyone else, or so anything else but repeat this process as often as possible (since they get a markup when they resell the bonds).

Actually, this whole QE thing is basically a clever marketing trick. To sell what? Government debt.

By switching the bond for cash it won't lend or spend, the bank still effectively has it lent to the government. Only, instead of having to lock it in for 10 years, it's entirely liquid. Moreover, there would be no one In his right mind to buy bonds when rates are artificialy low. But the demand deposit account has a variable rate!

All's dandy till th banks demand their deposit. Naturally they can only demand a portion - laws mandate they have to have some in there - but even if a mere 1 trillion were suddenly withdrawn and lent the currency in circulation - what actually affects prices - would basically double.

Now check this out. http://www.federalreserve.gov/releases/h3/current/h3.htm

Last week, there was a net outflow for the first time I can see.

So? What happens? "We're raising rates soon! So don't lend because we're about to devalue that loan! Also we're going to bribe you more to keep your money out of the economy!"
http://m.us.wsj.com/articles/fed-officials-see-role-for-interest-on-reserves-1404929744?mobile=y

The thing is, the bigger bribes they pay the more there will eventually be to withdraw. Hmmm....