Bitcoin mentioned at congressional hearing.

[hugolp]

... snip ...
Also, the Fed is not private. Mcdonal is.

Did you watch the video in the OP ?
The bill is to allow the US government to work around the issues caused by a privately held company which they can't control to protect the US people.

In the video nobody says the Fed is private. Please read what I have wrote explaining how the Fed works. And then go and check original sources and check if Im telling the truth or not.

Why do reason and logic dont work on people?

[kjj]

The Federal Reserve gives their benefits to the government. There is a big difference.

The Federal Reserve just gives their money to the government at cost!?!? How nice of them.

If I was them I would charge interest....

oh that's right...they do

Do you realize that the interest that the Fed charges to the government is not real? The Fed charges the government interest on the gov debt that it holds. That money is benefits for the Fed. The benefit of the Fed goes back to the government. So what the government pays, the government gets back. Its not real.

Look, you should look to the original sources and make up your mind. I will have to leave it here.

Be sure to read Working Paper 2007-052B from the St. Louis Fed's research division.

The fed mostly deals in short duration debt, which does not pay interest in the usual sense.  T-bills are sold at a discount to the primary dealers (who are not the fed), and then they are resold on the secondary market.  The FOMC operates to adjust liquidity and interest rates, but they don't really care about the interest they earn by doing so, only what their actions have on interest rates overall.

[hugolp]

Be sure to read Working Paper 2007-052B from the St. Louis Fed's research division.

The fed mostly deals in short duration debt, which does not pay interest in the usual sense.  T-bills are sold at a discount to the primary dealers (who are not the fed), and then they are resold on the secondary market.  The FOMC operates to adjust liquidity and interest rates, but they don't really care about the interest they earn by doing so, only what their actions have on interest rates overall.

The Fed mostly deals in short duration gov debt except when it does not. For example, during this crisis the Fed has been buying a lot of long term government debt.

Also, I am fully aware how the primary dealer system works. Does not change anything Ive said. The Fed says they buy and sell government bonds to adjust liquidity and interest rates (which is true) but the end result is that mid and long term they always end up buying government debt as net result. Check the data of the last 20 years of the Fed and you will see how they always increase the amount of gov debt they have. Its a way of sending money to the politicians.

[memvola]

Did he really meant Bitcoin, or was it just "bit coins" as a generic term for digital currencies without him even knowing about Bitcoin itself?

I think he meant our good old Bitcoin.

[NAGAjalokia]

I can not believe I just read someone compare Ron Paul and Sarah Palin. Now I've been paying (some) attention to the next election and our politicians and what not. and alllllllllll I see is a bunch of old white guys spewing the same old shit. Ron Paul is for small government, I am for small government. so if he makes it to the polls next year or so, I'll be there voting for him.

please don't ever mention sarah palin again..... she does not need to be spoken of, she is nothing.

Obama? Change? yeaaaaaaah.....right! how long is unemployment these days? like 2 years? and he's trying to extend it with a new bill? oh yeah thats gonna help people get a job. I'm sure every guy I see in the hood sitting on the porch drinking 40'z is gonna run to get a job after they find out they can get ANOTHER YEAR of unemployment....

which by the way, the gov't only pays a fraction of that, small/big businesses pay the rest. even if the guy quits and gets a job somewhere else, then gets fired, I still have to pay his fuckin unemployment.... crazy.

what I want out of the government is.... no more bailouts, no more printing money, no more wars (unless its defensive) and a solid 10-20 year rebuilding, i want those billions of bucks going to the DoD, to go to education, health care (not necessarily socialized, but atleast some R&D) and the people.

No mr.Obama, you may not take my guns, you cannot force me in some half-assed backwards obama-care, and NO WE DO NOT need anothor fuckin' 'Nam.

regardless of what you think, this country is going anywhere but up, I say we got another 10 to 15 and that might be generous. lets see who the next retard we (don't) elect is gonnna be.


(sorry for the bad language kids, I've been drinkin a 40 myself.....but I have a job, and today, I deserve this 40)

[error]

Ron Paul is for small government, I am for small government. so if he makes it to the polls next year or so, I'll be there voting for him.

The election that matters is much much sooner than that. The primaries will be in just a few months from now, while the snow is still falling. Make sure you're ready.

[EhVedadoOAnonimato]

Gold supply increases exponentially,

Uhm there is only a finite amount of gold in the earth's crust...

We're probably very far from having all earth's gold mined. And besides, it can be synthesized. And eventually in the future even mined from other planets, who knows...

Just take a look on gold supply past growth:


And compare with the predictable future growth in bitcoin supply:

[makomk]

The value of their gold would go up by the same percentage as the value of the gold that you have.

"The law, in its majestic equality, forbids the rich and the poor alike to sleep under bridges, to beg in the streets, and to steal bread."

[JohnDoe]

Gold supply increases exponentially,

Actually the gold extraction rate peaked a decade ago.

http://en.wikipedia.org/wiki/Peak_gold

[MelMan2002]

Did he really meant Bitcoin, or was it just "bit coins" as a generic term for digital currencies without him even knowing about Bitcoin itself?

I think he meant our good old Bitcoin.

Yes, he did - Larry White is very familiar with Bitcoin.  Ron Paul, on the other hand, may not be as familiar.

[Phinnaeus Gage]

Gold supply increases exponentially,

Actually the gold extraction rate peaked a decade ago.

http://en.wikipedia.org/wiki/Peak_gold

Upon reading the supplied wiki article, I now have a question. Have we, or when will we, reach "Peak Bitcoin"? If the question merits another, feel free to start one.

[NAGAjalokia]

Gold supply increases exponentially,

Actually the gold extraction rate peaked a decade ago.

http://en.wikipedia.org/wiki/Peak_gold

Upon reading the supplied wiki article, I now have a question. Have we, or when will we, reach "Peak Bitcoin"? If the question merits another, feel free to start one.

like 2033 or something check the graph ^^^

[JohnDoe]

Upon reading the supplied wiki article, I now have a question. Have we, or when will we, reach "Peak Bitcoin"? If the question merits another, feel free to start one.

Block 210,000 when 10,500,000 coins have been mined.

like 2033 or something check the graph ^^^

When talking about a peak in X commodity it means a peak in the extraction rate, not depletion. Also depletion will be around year ~2144, not 2033.

[theymos]

Here's where he mentioned it:
http://www.youtube.com/watch?v=8OOXKrxStn0&t=20m50s

[MoonShadow]

like 2033 or something check the graph ^^^

When talking about a peak in X commodity it means a peak in the extraction rate, not depletion. Also depletion will be around year ~2144, not 2033.

Thank God!  A forum member who actually takes the time to completely understand a subject before answering questions!  As oppossed to the majority that takes a look at a truncated visual aid, never noticing that it's truncated.

[hugolp]

Gold supply increases exponentially,

Actually the gold extraction rate peaked a decade ago.

http://en.wikipedia.org/wiki/Peak_gold

Its still to be seen if we have really reached peak gold or the mining activity of gold was low due to the depressed prices. With the new prices of gold, a lot of gold miners are starting new projects and we might see an increase in the extraction again.

[MoonShadow]

Did he really meant Bitcoin, or was it just "bit coins" as a generic term for digital currencies without him even knowing about Bitcoin itself?

I think he meant our good old Bitcoin.

Yes, he did - Larry White is very familiar with Bitcoin.  Ron Paul, on the other hand, may not be as familiar.

The Pauls may not be as familiar with Bitcoin as some, but they are aware of it.  But they don't need to really grok it, they have aides for that stuff.  They don't update their own blogs, either; and I seriously doubt that either one tweets.

[rokh]

When talking about a peak in X commodity it means a peak in the extraction rate, not depletion. Also depletion will be around year ~2144, not 2033.

I figured that I'd add that technically, we've been at peak bitcoin since the beginning, and it'll just go downhill from here.

[marcus_of_augustus]

hhmmmmmm.   but didn't the gold standard help drive us into a depression because the gov couldn't print money to help the deflation that caused the depression?

so now I am torn.  I want the law so as to help bitcoin...  but dont want the law because any economist will tell you that the gold standard hurts economies.

The bill is NOT for a gold standard, it is to repeal the legal tender laws that give fiat Federal Reserve bankster notes a monopoly over the money supply.

Monopolies are bad things; centralised, monopolised fiat monies are bad things on steroids spawning epic fails in every direction.