Our crazy debt system.

[spazzdla]

I was curious to where money came from... I googled where does new money come from a year ago and a bit..  The red pill has flipped my view of everything upside down.

Do you guys think the game will come to an end?  I sure hope it does but I do feel horrible for people that thought food, shealter, water and security where worthless and that paper was something of extreme value.  A bunch of my frineds think I've lost my mind and refuse to believe the Bank of Canada, FED, etc are privately owned... Even better was when I was told "there is nothing to worry about america could just pay all it's debt off with gold!"

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[F-bernanke]

Sure, All fiats go to zero, history and math both prove this. Only question is, When?

The currency wars are happening as we speak. EURUSD goes a bit too high? lets fight it and print MOAR: http://sg.finance.yahoo.com/news/ecb-ready-fight-deflation-keeps-175219454.html

[knightcoin]

[spazzdla]

Oh I like that pic

[alexeft]

EURUSD goes a bit too high? lets fight it and print MOAR: http://sg.finance.yahoo.com/news/ecb-ready-fight-deflation-keeps-175219454.html

They have indebted everyone indebtable and now are looking for more!!!!!!!!!!!!!

[alexeft]

I was curious to where money came from... I googled where does new money come from a year ago and a bit..  The red pill has flipped my view of everything upside down.

Do you guys think the game will come to an end?  I sure hope it does but I do feel horrible for people that thought food, shealter, water and security where worthless and that paper was something of extreme value.  A bunch of my frineds think I've lost my mind and refuse to believe the Bank of Canada, FED, etc are privately owned... Even better was when I was told "there is nothing to worry about america could just pay all it's debt off with gold!"

It is bound to come to an end. Unless we start taking loans from Mars!!! LOL 

[alexeft]

And, of course, the funniest part of it all is that we, the Greeks, are being bashed for having debt by the whole world!!!!
Especially germany!! ROFL!!!!!!!! 

[atlosas]

Many people hate the fiat system but you have to admit it is quite brilliant. Money appearing out of nowhere not causing hyperinflation. Seperation $ from gold actualy made US number #1 economy in the world (i am not from USA).

[leopard2]

Sure, All fiats go to zero, history and math both prove this. Only question is, When?

Properly phrased, all fiat currencies, over the long term, approximate their inner value - which is zero.

Says this funny guy.

[stopdark]

Of course it will.

[bitbouillion]

Do you guys think the game will come to an end?  

The average lifetime of fiat currency in history is 27 years. Google for "marginal productivity of debt". As debt grows the GDP grows, but not at the same rate. Debt always grew faster than GDP. At a certain point in distant future the interest alone would be bigger than the GDP. Then it becomes clear even for the dumbest that the system is not sustainable (actually it was not sustainable from the beginning). But long before we reach that point, it will fail. You can reduce interest rates and provide more liquidity (through central bank operations aka QE) to provide room for more debt, but that buys only some time. Or, you go to war and let others pay the debt. Or, the aliens bail us out - just kidding. Or, the least worst solution, you quickly discover plentiful new resources at extremely low cost (like cheap electricity through nuclear fusion) to fuel an economic boom that will reverse the debt/GDP ratio and gain another 200 years. But after that it will be finally over not only for civilization, but most living things on earth (because of the second law of thermodynamics). Yes the game will come to the end.

[verdun2003]

Obviously, the only fiat currencies that survived saw their value plummet. Take the pound, 300 years ++, lost 99% of its value. Take the USD, 100 years ago, lost 97% of its value. And those are the official number, therefore, they lost way more as the CPI is manipulated.

[leopard2]

Every few decades there is a reset, usually hyperinflation and/or war followed by currency reform

US dollar and UK pound exist longer by outsourcing the reset to other victims on the planet by waging war = WW1, WW2 and so on

Will Ukraine be the excuse to start WW3 to reset US economy once again?  

[F-bernanke]

[ThirdRenaissance]

Goodbye Dollar, hello Bitc... ehm Yuan?

[ns12123]

In about 3 years bitcoins will go crazy too

[CurbsideProphet]

I was curious to where money came from... I googled where does new money come from a year ago and a bit..  The red pill has flipped my view of everything upside down.

Do you guys think the game will come to an end?  I sure hope it does but I do feel horrible for people that thought food, shealter, water and security where worthless and that paper was something of extreme value.  A bunch of my frineds think I've lost my mind and refuse to believe the Bank of Canada, FED, etc are privately owned... Even better was when I was told "there is nothing to worry about america could just pay all it's debt off with gold!"

You can start by sending them to the Federal Reserve's own website.

The Federal Reserve System fulfills its public mission as an independent entity within government.

It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.

http://www.federalreserve.gov/faqs/about_14986.htm

That's their own words.  It should at least get the gears to start moving in their head.

[K3nn3th]

That's their own words.  It should at least get the gears to start moving in their head.

Haha! You think they're thinking?
I think you're wrong.

[g4c]

...Do you guys think the game will come to an end?...

Of course, as @leapord2 alludes to: it was designed to come to an end, like musical chairs.

When WW3 is announced, then the game is officially over, not long now.

[g4c]

Many people hate the fiat system but you have to admit it is quite brilliant. Money appearing out of nowhere not causing hyperinflation. Seperation $ from gold actualy made US number #1 economy in the world (i am not from USA).

FIAT?

The term derives from the Latin fiat ("let it be done", "it shall be")

"it shall be"

So I took this up with the local .gov shoutbox on their customer support site, here's how it went down:

user.weener: I have a quick question.

gov.support: Go ahead weener.

user.weener: Erm yes, your fiat money is called fiat.

gov.support: Yes.

user.weener: Well in latin fiat means "it shall be"?

gov.support: Very astute of you, that's correct.

user.weener: Well who says it shall be?

gov.support: Government says so, well we outsource it and allow a large firm to say so.

user.weener: Can I say so too, jsut a little bit maybe?

gov.support: Please clarify your question weener.

user.weener: Can I print my own bills, let them be into existence?

gov.support: NO!

user.weener: Why not?

gov.support: We have bigger guns weener.

user.weener: OK, thanks for your time.

gov.support: Goodbye weener.

[CurbsideProphet]

That's their own words.  It should at least get the gears to start moving in their head.

Haha! You think they're thinking?
I think you're wrong.

I'm talking about his friend, not the Fed.

[conspirosphere.tk]

gov.support: We have bigger guns weener.

and looking at what happened to Saddam and Ghaddafi when they threatened to do business in other fiat coins, I wonder what bitcoiners can expect when they will be perceived as a threat to gov. fiat.

[The One]

I was curious to where money came from... I googled where does new money come from a year ago and a bit..  The red pill has flipped my view of everything upside down.

Do you guys think the game will come to an end?  I sure hope it does but I do feel horrible for people that thought food, shealter, water and security where worthless and that paper was something of extreme value.  A bunch of my frineds think I've lost my mind and refuse to believe the Bank of Canada, FED, etc are privately owned... Even better was when I was told "there is nothing to worry about america could just pay all it's debt off with gold!"

That was keyboards inside Banks are for....

Money comes form nothing and backed by nothing. Created and used as debt to enslave idiots into paying interest.

National debt - fake money from banks and public pays taxes to pay for the interest. Ever since i did business studies over 20 years ago, i'd asked all lecturers and so-called professors, "Why pay interest to the banks when the government can create the money and spend it without debt hence no interest." All replied, "Doesn't work like that", or something along those lines.

Debts and interest based on fiat money is the greatest scam of human mankind.

[CurbsideProphet]

I was curious to where money came from... I googled where does new money come from a year ago and a bit..  The red pill has flipped my view of everything upside down.

Do you guys think the game will come to an end?  I sure hope it does but I do feel horrible for people that thought food, shealter, water and security where worthless and that paper was something of extreme value.  A bunch of my frineds think I've lost my mind and refuse to believe the Bank of Canada, FED, etc are privately owned... Even better was when I was told "there is nothing to worry about america could just pay all it's debt off with gold!"

That was keyboards inside Banks are for....

Money comes form nothing and backed by nothing. Created and used as debt to enslave idiots into paying interest.

National debt - fake money from banks and public pays taxes to pay for the interest. Ever since i did business studies over 20 years ago, i'd asked all lecturers and so-called professors, "Why pay interest to the banks when the government can create the money and spend it without debt hence no interest." All replied, "Doesn't work like that", or something along those lines.

Debts and interest based on fiat money is the greatest scam of human mankind.

You're confusing a singular business entity with government policy.  Your professors should have told you that you pay interest because a bank makes its profit on the spread between what it lends out vs what it pays depositors.  You do realize banks pay taxes too right?

The problem isn't with money creation, the problem is with irresponsible money creation, which is what we currently have.  Businesses and consumers are hooked on debt and cheap debt at that.  It's the duty of each individual nation to address this, not singular for-profit businesses.

[leopard2]

gov.support: We have bigger guns weener.

and looking at what happened to Saddam and Ghaddafi when they threatened to do business in other fiat coins, I wonder what bitcoiners can expect when they will be perceived as a threat to gov. fiat.

Yup.

Saddam: I will sell oil for EUR.
Uncle Sam: No you won't, wanna bet?

Ghaddafi: I will create an islamic currency based on gold and sell oil for that.
Uncle Sam: No you won't, wanna bet?

Both of them deserved their fate, they were demonically evil dictators, but that was perfectly fine for Uncle Sam. You can kill and torture as long as you do it with USD.

What a wonderful world....

[theecoinomist]

I think Japan will be the country to pop this time..

[aminorex]

I think Japan will be the country to pop this time..

China seems to be rolling over pretty fast right now.