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Bitcoin to be accepted at Bobby Dodd
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<blockquote data-quote="DTGT" data-source="post: 84987" data-attributes="member: 455"><p>First of all, Go Jackets! THWG! And Miami is going down tomorrow. </p><p></p><p>Please pardon the long post. I had to go as close to point-by-point from two other long posts:</p><p>The only fiat currencies that failed, did so because the government failed. Many of the fiat currencies that no longer exist were exchanged for a new currency. A recent example is the French franc being exchanged for the euro. The franc no longer exists, but it did not lose value for the people using it. (I don't think giving up their Central Bank was a good thing, but we are not going into that. I don't care if you disagree; I won't respond on this point.)</p><p></p><p></p><p>First, I never claimed that inflation was good. Second, I want to be clear that inflation and deflation are not opposites. They are different problems with different root causes, effects, and solutions.</p><p></p><p>Wages are sticky and naturally resist declining (downward nominal wage rigidity); this is part of the problem with deflation. You can't cut prices without cutting wages. One man's purchase is another man's income. In real life, cutting the wages of everyone in the nation can't be done to match deflation... and chaos ensues.</p><p></p><p>Weak inflation has historically proved to not be a problem.</p><p></p><p></p><p>If the nation's currency is Legal Tender, then it is mandated by law that a creditor must accept it for repayment of debt. Taxes are required to be paid in the nation's currency. So, yes, Legal Tender is superior for paying for things and doing business in nations...</p><p></p><p></p><p>Here's how this actually worked: 1) banks have insufficient liquid funds according to the stress tests 2) bank gives MBS to the treasury 3) the treasury increases number in the bank's account with the treasury 4) bank passes stress test and holds most of the extra digital (not paper) currency in their account with the treasury.</p><p></p><p>Some of it leaked out into the economy, but not enough to notice and certainly not enough for the gold bugs to be right about inflation.</p><p></p><p></p><p>I agree that the velocity of money is a lot less than healthy right now. Much of this decline is due to the loss of confiscatory taxes on executive wages that have no basis on their marginal worth to the company (they are currently based on their high bargaining power for higher wages) and the loss of high marginal estate taxes for particularly obscene estates. If you value meritocratic ideals, then you are hard pressed to justify a tax system that allows people to not work a day in their lives, yet, are able to muck up democracy for the rest of us that value hard, honest work.</p><p></p><p>Let's talk at the end of 2022 and see what the returns of the market were. My money is voting on more than 0%.</p><p></p><p>Speculation is but a trickle in the velocity of money. The vast majority of it comes from the bottom 90%. The people in the worst situations are unable to save and they end up spending every penny. Remember, one man's purchase is another man's income. This is where the loss of velocity originated.</p></blockquote><p></p>
[QUOTE="DTGT, post: 84987, member: 455"] First of all, Go Jackets! THWG! And Miami is going down tomorrow. Please pardon the long post. I had to go as close to point-by-point from two other long posts: The only fiat currencies that failed, did so because the government failed. Many of the fiat currencies that no longer exist were exchanged for a new currency. A recent example is the French franc being exchanged for the euro. The franc no longer exists, but it did not lose value for the people using it. (I don't think giving up their Central Bank was a good thing, but we are not going into that. I don't care if you disagree; I won't respond on this point.) First, I never claimed that inflation was good. Second, I want to be clear that inflation and deflation are not opposites. They are different problems with different root causes, effects, and solutions. Wages are sticky and naturally resist declining (downward nominal wage rigidity); this is part of the problem with deflation. You can't cut prices without cutting wages. One man's purchase is another man's income. In real life, cutting the wages of everyone in the nation can't be done to match deflation... and chaos ensues. Weak inflation has historically proved to not be a problem. If the nation's currency is Legal Tender, then it is mandated by law that a creditor must accept it for repayment of debt. Taxes are required to be paid in the nation's currency. So, yes, Legal Tender is superior for paying for things and doing business in nations... Here's how this actually worked: 1) banks have insufficient liquid funds according to the stress tests 2) bank gives MBS to the treasury 3) the treasury increases number in the bank's account with the treasury 4) bank passes stress test and holds most of the extra digital (not paper) currency in their account with the treasury. Some of it leaked out into the economy, but not enough to notice and certainly not enough for the gold bugs to be right about inflation. I agree that the velocity of money is a lot less than healthy right now. Much of this decline is due to the loss of confiscatory taxes on executive wages that have no basis on their marginal worth to the company (they are currently based on their high bargaining power for higher wages) and the loss of high marginal estate taxes for particularly obscene estates. If you value meritocratic ideals, then you are hard pressed to justify a tax system that allows people to not work a day in their lives, yet, are able to muck up democracy for the rest of us that value hard, honest work. Let's talk at the end of 2022 and see what the returns of the market were. My money is voting on more than 0%. Speculation is but a trickle in the velocity of money. The vast majority of it comes from the bottom 90%. The people in the worst situations are unable to save and they end up spending every penny. Remember, one man's purchase is another man's income. This is where the loss of velocity originated. [/QUOTE]
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