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Author Topic: Profits with debasement  (Read 781 times)
remotemass (OP)
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March 27, 2013, 02:55:23 AM
 #1
At the end of 2010, there was about $1.2 trillion US Dollars (USD) worth of euros in circulation, the highest circulating value of any world currency.
As the inflation in the Euro Area has been about 2-3%, that means the European Central Bank is profiting about $36 billion a year with coinage debasement.
To be honest it doesn't seem much, comparing to what States collect from taxes.
{ Imagine a sequence of bits generated from the first decimal place of the square roots of whole integers that are irrational numbers. If the decimal falls between 0 and 5, it's considered bit 0, and if it falls between 5 and 10, it's considered bit 1. This sequence from a simple integer count of contiguous irrationals and their logical decimal expansion of the first decimal place is called the 'main irrational stream.' Our goal is to design a physical and optical computing system system that can detect when this stream starts matching a specific pattern of a given size of bits. bitcointalk.org/index.php?topic=166760.0 } Satoshi did use a friend class in C++ and put a comment on the code saying: "This is why people hate C++".
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March 27, 2013, 03:46:37 AM
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You are assuming CPI = money supply increase
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March 27, 2013, 04:55:20 AM
 #3
Quote from: Nagato on March 27, 2013, 03:46:37 AM
You are assuming CPI = money supply increase

They are very related, so I am sure my estimation is good.
But more accurate would be to know exactly how much extra of the currency is put in circulation, if that is what we want to know.
But I'm positive we would get pretty much the same figure.

It is not as much as I supposed it was.
It is nothing compared to the GDP and taxes collection of the corresponding countries.
{ Imagine a sequence of bits generated from the first decimal place of the square roots of whole integers that are irrational numbers. If the decimal falls between 0 and 5, it's considered bit 0, and if it falls between 5 and 10, it's considered bit 1. This sequence from a simple integer count of contiguous irrationals and their logical decimal expansion of the first decimal place is called the 'main irrational stream.' Our goal is to design a physical and optical computing system system that can detect when this stream starts matching a specific pattern of a given size of bits. bitcointalk.org/index.php?topic=166760.0 } Satoshi did use a friend class in C++ and put a comment on the code saying: "This is why people hate C++".
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March 27, 2013, 05:11:55 AM
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What i meant was that CPI is not accurate because it is grossly understated. If you move that up to 10%, does that number seem significant now? Also, whatever the figure is, 10x more is made by the private banking system which multiplies that new money by many times via FRB.
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