The dollars which came from someone that owed them back, isn't owed back by you. It's owed back by the borrower.


You mean it has had a relaxed policy on the repayment if loans?

I'm running the bitcoin client again to see if anything comes through but there is nothing so far. 

There will be 10 statist documentaries for this documentary so the BBC balances the scales to it's usual propaganda I bet.

Haven't watched it yes but I will...

The documentary was okay. Not all about free markets through and through. It actually had examples of manufacturing for the air force.

People say all money you hold is owed back by you and there are others on the thread that get confused because of this.

As far as I know is that most (if not all?) of the new money is lent out expected to return to the federal reserve central bank. If you happen to get income from the money owed back with this "easy credit", you aren't the borrower. If the money doesn't get back into the hands of the borrower than I guess what happens is the borrower borrows more, potentially new, money or they default on the debt.

What the US government does is borrow more.

Quantitative easing refers to the buying of government bonds with new money, correct? Financing government debt with credit created from thin air?

Once again, I'm not an expert on these monetary things and I'm certainly not an expert on the US system. I don't know exactly how new money in the US is spent. I don't know if 100% goes to into credit or some goes to non-repayable subsidies.

People blame markets and capitalism in themselves for the financial crisis. I think these people are stupid.

With fiat the governments can change the money supply whenever it chooses basically. Precious metals supply is tied to nature and the ability for people to extract it from nature.

And you never mentioned bitcoin in your argument.

The Dragons Den is supposed to be for businesses but there was once a man that offered a share in his poker profits, so it's not always as you'd expect on there. 

You can certainly call it similar to a ponzi scheme (Similar but not done in the exact same way) but not at all like a pyramid scheme.

Also, you can say interest rates are negative when you adjust them for inflation, right?

Governments right now are trying to kick start another boom period through stupidly low-interest, easy credit policies. What seems to be happening, is that it's preventing the correction from playing out correctly and causing massive inflation.

But I can't advise alternative monetary policies because the existence of monetary polices is what is causing the mess in the first place...

And people blame markets and "greed" for all the problems.

You need to explain it carefully if I'm to understand what you are saying. Are you saying that when the government puts the economy in boom mode, people will borrow to make money from others borrowing money and ultimately it's a pile of mal-investment and eventually leads to bust mode?

I do understand that the federal reserve prints money and then buys treasury bonds and lends to banks. And as more money is pumped into the system, the more and more money is thrown through the cycles of credit.

Don't understand this private ownership of the federal reserve and definitely don't understand the "pyramid scheme" idea still.

This makes no sense. What on earth has debt got to do with pyramid schemes?

To be honest with everyone the US monetary system is so insane I don't really want to understand it all.

Bitcoin is volatile, you shouldn'y view sudden drops as a massive crash that will go on forever, it slows down and goes back the other way. Brilliant money making opportunity for those clever enough.

US Dollars are, by themselves, a fiat currency which are devalued massively by the reckless increase of the money supply.

I missed the part where it was actually explained how I "bought into a mountain of lies".

A ponzi scheme is not (At least necessarily) a pyramid scheme.

I suppose in a way it is a ponzi scheme, yes.

I don't have a broader definition of pyramid scheme in mind. Maybe people do use the term in a broad sense. Why not just call the broader term "scam"?

People always miss out the time element with economic thinking. This is true.

But why do people think companies make allegiances when making new technologies? They can spread the cost over more beneficiaries and gain advantages from using resources from the different companies. They can develop it faster if the partners can create a good relationship etc.

And don't expect that every company can easily copy new products including any complex new manufacturing processes required. Then you have elements such as brand loyalty and repeat custom which enable the first company to create a new product to maintain customers unless another competitor actually does something better. You can't just copy someone and steal their customers, why would customers move unless you did it better? Often you will have to offer something clearly considerable better to offset the risk involved with changing supplier.

The location element is important too. If a business maks a revolutionary new product or business model but it's location tied, why shouldn't competitors copy and introduce it to other areas? Not just to geographical locations but also to different market segments.

Patents create much more damage than people think, I reckon. Patents are the worst form of IP rights.

This isn't a description of a pyramid scheme as I know it.

A pyramid scheme is where someone or organisation others people the opportunity to earn commissions from enrolling others in a programme (Which has a startup cost) and commissions from their commissions resulting in an unsustainable scheme where the people at the top makes loads of money and the people at the bottom lose money.

I missed the part where it was actually explained how the US dollar is a pyramid scheme.

Wouldn't you be annoyed if the stop loss was triggered and then the price went right back up again?

Okay thanks, I just did that.

Looking forward to testing my algorithm out. 

How long does it take for the test account to be enabled? I sent a email yesterday and got a reply saying the info was sent to the lead programmer but nothing since.

I've pretty much done my trading algorithm. I just have to integrate it and test it.