knight22 (OP)
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July 14, 2012, 01:46:27 PM
Last edit: July 14, 2012, 02:05:53 PM by knight22 |
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Here a good reference to anyone who wants to understand the exact process behind money creation. It is entitle "Modern Money Mechanics" written by Federal Reserve Bank of Chicago itself. You will understand that all the money is created only with loans process and that all the money in circulation is representing only a dept to society. http://www.rayservers.com/images/ModernMoneyMechanics.pdf(free of copyright) |
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"You Asked For Change, We Gave You Coins" -- casascius
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Roger_Murdock
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July 14, 2012, 02:20:41 PM |
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"Modern Money Mechanics"? Shouldn't a paper with that title describe the operation of the Block chain?
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knight22 (OP)
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July 14, 2012, 02:43:29 PM
Last edit: July 15, 2012, 05:21:06 PM by knight22 |
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I think one of the first edition of this booklet was written in the early 70's but I agree, "Modern" should now refer to the blockchain  |
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cbeast
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Let's talk governance, lipstick, and pigs.
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July 14, 2012, 10:32:52 PM |
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That book should have been named "How to steal money from people legally." The next book on how to use crypto-money can be named "Everyone Gets to Keep the Money they Make."
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Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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knight22 (OP)
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July 14, 2012, 11:27:35 PM |
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That book should have been named "How to steal money from people legally." The next book on how to use crypto-money can be named "Everyone Gets to Keep the Money they Make."
+1 agree! |
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Nomad Tom
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July 18, 2012, 08:48:18 AM |
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Money in lending terms is like a system of IOUs. Federal Reserve Notes are like promises backed by the solvency of the government. If an individual is insolvent, there used to be debtor prisons. Now there's a credit number that disallows your IOUs. Repo men and the IRS take loans seriously!
With anonymity and no fraud protection, bitcoin does not lend itself to modern finance. It prevents binding contracts, and in doing so limits credit. If this new currency catches on, it will have to work in tandem with the existing lending system. Bitcoins would be used more for reserve purposes and dollars will continue to be used for debts.
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myrkul
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July 18, 2012, 08:53:48 AM |
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With anonymity and no fraud protection, bitcoin does not lend itself to modern finance.
Perhaps the way that banks have been doing it, yes, but I think reading this thread will be enlightening: https://bitcointalk.org/index.php?topic=21732.0 |
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Dalkore
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Mining since 2010 & Hosting since 2012
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July 31, 2012, 10:49:48 PM |
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Here a good reference to anyone who wants to understand the exact process behind money creation. It is entitle "Modern Money Mechanics" written by Federal Reserve Bank of Chicago itself. You will understand that all the money is created only with loans process and that all the money in circulation is representing only a dept to society. http://www.rayservers.com/images/ModernMoneyMechanics.pdf(free of copyright) I suggest everyone read this. This is not easy to find these days and I believe the Chicago Fed took this down from its educational section. I have had a hard copy of this for years. We are in fact in a debt-based monetary structure. |
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runeks
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July 31, 2012, 11:14:53 PM |
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With anonymity and no fraud protection, bitcoin does not lend itself to modern finance. It prevents binding contracts, and in doing so limits credit. If this new currency catches on, it will have to work in tandem with the existing lending system. Bitcoins would be used more for reserve purposes and dollars will continue to be used for debts.
I don't understand. Why are people who loan out dollars more trustworthy than people who loan out bitcoins? Fraud-protection shouldn't be a feature of a currency, it's should be a feature of the institutions who mediate loans. I agree that bitcoin-denominated credit will be more limited than dollar-denominated credit (especially now), but I don't agree that this is a bad thing. |
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knight22 (OP)
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August 04, 2012, 05:24:05 PM |
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The problem is not that some money is created out of loans but that the whole money supply is created only that way. That means if we don't take out loans from banks, our money supply is totally disappearing and we are facing a crisis. We are totally chained to that system.
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myrkul
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August 04, 2012, 08:28:57 PM |
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The problem is not that some money is created out of loans but that the whole money supply is created only that way. That means if we don't take out loans from banks, our money supply is totally disappearing and we are facing a crisis. We are totally chained to that system.
Well, that's the idea. "They" want you to be chained to that system. Alternative currencies such as bitcoin break that cycle, though. Ideally, we should move completely out of fiat currencies, and when I physically get to the Shire, that will be my first objective. |
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