by Tenpoundbass ➕follow (7) 💰tip ignore
« First « Previous Comments 51 - 90 of 189 Next » Last » Search these comments
Charging interest on a commodity based system doesn't work. I will let you do the math for a single ounce of gold compounded at a 3% interest rate for say 2000 years.
There is a reason that all the Great religious books forbid charging interest.
Fiat does away with this as the system can be expanded.
Charging interest on a commodity based system doesn't work. I will let you do the math for a single ounce of gold compounded at a 3% interest rate for say 2000 years.
It's not that they lose their money. It's that they enslave everyone else.
Since there is no way for you to refute that charging interest on a commodity based system leads to anything but the systems collapse, I will consider this a win.
Yes, charging interest, which is a mathematical construct, overwhelms physical supply.
People seem to be implying that there wouldn't be inflation if dollar was still linked to gold. I don't think history supports this notion.
People seem to be implying that there wouldn't be inflation if dollar was still linked to gold.
,
The kind of run I'm talking about is where 25lb bars (400 oz) are sitting in a vault, and the depositor comes calling. A 25# bar of gold is 400oz x $2000/oz = $800,000.
No, inflation is a way out for a borrower.
Zak says
,
The kind of run I'm talking about is where 25lb bars (400 oz) are sitting in a vault, and the depositor comes calling. A 25# bar of gold is 400oz x $2000/oz = $800,000.
Your point is valid, but I have a picky detail. Gold is measured in troy weight, and a troy pound is 12 troy ounces, with a troy ounce being 1.097 standard ounces. That common 25lb troy gold bar would actually be 300 ounces, not 400, so only worth $600,000.
Charging interest on a commodity based system doesn't work. I will let you do the math for a single ounce of gold compounded at a 3% interest rate for say 2000 years
Price inflation (especially rapid) is what people dislike.
I just think it is hilarious that sheeple actually believe that inflation is good.
Since there is no way for you to refute that charging interest on a commodity based system leads to anything but the systems collapse, I will consider this a win.
If you are high debt type with big mortgage and big car and credit card debt, inflation is good for you.
Misc says
inflation is a way out for a borrower.
First of all, the biggest borrowers are not those taking out home loans, but the banks themselves: their action of taking deposit is borrowing.
More importantly, it's not inflation itself that helps borrowers (as lenders would charge higher interest rate when both sides expect higher inflation), but the difference between inflation rate during loan service vs. inflation expectations when the loan interest rate was set. That's where artificially manipulation of interest rates by monopolistic banksters really rip off the general population: just look at the millions of people who took out loans to buy houses at or near market peaks due to fear of run-away inflations (FOMO, "now or never"). There are always more people buying at the peaks than at the bottoms (that's how peaks and bottoms are formed). Left to a free ma...
Misc says
inflation is a way out for a borrower.
First of all, the biggest borrowers are not those taking out home loans, but the banks themselves: their action of taking deposit is borrowing.
More importantly, it's not inflation itself that helps borrowers (as lenders would charge higher interest rate when both sides expect higher inflation), but the difference between inflation rate during loan service vs. inflation expectations when the loan interest rate was set. That's where artificially manipulation of interest rates by monopolistic banksters really rip off the general population: just look at the millions of people who took out loans to buy houses at or near market peaks due to fear of run-away inflations (FOMO, "now or never"). There are always more people buying at the peaks than at the bottoms (that's how peaks and bottoms are formed). Left to a free ma...
Misc says
Charging interest on a commodity based system doesn't work. I will let you do the math for a single ounce of gold compounded at a 3% interest rate for say 2000 years.
It eventually leads to default in a commodity based system, on and off. There are ALWAYS bankruptcies in a commodity based system.
With a fiat system, it ALWAYS leads to inflation. In a purely fiat system, if a Bank loans out $1,000 to 1000 people, and charges 1% interest on everybody and loans it for a year, how is it possible for everybody to pay back the loan at the end of the year? Everybody will own $1010 at the end of the year. So how do you prevent a default in this system? Well, the bank creates $10 for each person, and uses that to buy goods and services from everybody. There can STILL be defaults, but it's not guaranteed.
The reason the US target inflation rate is 2%, is that ...
Misc says
inflation is a way out for a borrower.
First of all, the biggest borrowers are not those taking out home loans, but the banks themselves: their action of taking deposit is borrowing.
More importantly, it's not inflation itself that helps borrowers (as lenders would charge higher interest rate when both sides expect higher inflation), but the difference between inflation rate during loan service vs. inflation expectations when the loan interest rate was set. That's where artificially manipulation of interest rates by monopolistic banksters really rip off the general population: just look at the millions of people who took out loans to buy houses at or near market peaks due to fear of run-away inflations (FOMO, "now or never"). There are always more people buying at the peaks than at the bottoms (that's how peaks and bottoms are formed). Left to a free ma...
Misc says
Charging interest on a commodity based system doesn't work. I will let you do the math for a single ounce of gold compounded at a 3% interest rate for say 2000 years.
It eventually leads to default in a commodity based system, on and off. There are ALWAYS bankruptcies in a commodity based system.
With a fiat system, it ALWAYS leads to inflation. In a purely fiat system, if a Bank loans out $1,000 to 1000 people, and charges 1% interest on everybody and loans it for a year, how is it possible for everybody to pay back the loan at the end of the year? Everybody will own $1010 at the end of the year. So how do you prevent a default in this system? Well, the bank creates $10 for each person, and uses that to buy goods and services from everybody. There can STILL be defaults, but it's not guaranteed.
The reason the US target inflation rate is 2%, is that ...
Misc says
No, inflation is a way out for a borrower.
Is that why the national debt has grown pretty much every year since world war2 we must need more inflation then!
RWSGFY says
People seem to be implying that there wouldn't be inflation if dollar was still linked to gold.
Rent would be $20 but you would have to suck a lot of ass to get that $20.
HeadSet says
If you are high debt type with big mortgage and big car and credit card debt, inflation is good for you.
If you work for a living, debt and inflation are your slave masters. They both crack the whip on your back and force you to work while the powers that be sit on their asses and reap the benefits of your labor.
HeadSet says
If you are high debt type with big mortgage and big car and credit card debt, inflation is good for you.
If you work for a living, debt and inflation are your slave masters. They both crack the whip on your back and force you to work while the powers that be sit on their asses and reap the benefits of your labor.
If you work for a living and are in debt, deflation would reduced your wages until you could not make payments and you would lose whatever you went into debt to obtain.
The people with the assets would sit back and collect it all.
Misc says
If you work for a living and are in debt, deflation would reduced your wages until you could not make payments and you would lose whatever you went into debt to obtain.
The people with the assets would sit back and collect it all.
What are "people with assets?" The savers who did not take on excessive debt? It would be good to see their savings actually worth something and not inflated away to bail out irresponsible borrowers.
If you are high debt type with big mortgage and big car and credit card debt, inflation is good for you. It may turn out that the debt boys were the smart ones, if we do in fact have double digit inflation.
If you work for a living and are in debt, deflation would reduced your wages until you could not make payments and you would lose whatever you went into debt to obtain.
The people with the assets would sit back and collect it all.
Property transactions today are at a generational low. By your logic this would be an ideal time to buy as this would signal a trough in prices. I would not recommend this course of action
I would prefer a situation of inflation rather than deflation. Especially when financing something like a house over 30 years. With inflation the rising wages would cause the payment as a percent of income to be lower and lower each year. Whereas, with deflation the payment becomes steadily more unbearable.
Wasn't the Great Depression basically a bout of severe deflation? I don't remember accounts of people being very happy about it.
The people with assets would be those with inherited wealth. .
As many are finding out today, it is difficult to save when rent is 50% of your pay.
RWSGFY says
Wasn't the Great Depression basically a bout of severe deflation? I don't remember accounts of people being very happy about it.
The Great Depression was the result of FED forcing inflation between 1926-1928 trying to extend the bubble of the "go-go 20's," so that insiders could unload onto the masses.
Not for Joe Howmuchamonth. Joe stretches to buy a home on a 30 year mortgage. Then Joe stretches again to buy a car on a 7 year loan. Inflation kicks in. Now Joe sees his nominal wages rise along with the price of his house. The house and car are on fixed rate loans. In 10 years, Joe has a "cheap" monthly mortgage and a paid for car he can trade in to offset the inflation on new cars. I myself am a saver and have not had a residence mortgage since I paid off my first house early, but I recognize the situation of inflation helping the high debt folks.
Reality says
RWSGFY says
Wasn't the Great Depression basically a bout of severe deflation? I don't remember accounts of people being very happy about it.
The Great Depression was the result of FED forcing inflation between 1926-1928 trying to extend the bubble of the "go-go 20's," so that insiders could unload onto the masses.
But then deflation kicked in, didn't it? Deflation is good, right? Why nobody was happy about it?
Misc says
Property transactions today are at a generational low. By your logic this would be an ideal time to buy as this would signal a trough in prices. I would not recommend this course of action
You are confusing volume vs. price. Volume peaks often coincide with turns in price direction, whereas volume troughs usually doesn't signal much of anything. Basic charting / technical analysis. Please do not put words in my mouth; thank you. It usually takes time for people to go through the 5 to 7 phases denial through acceptance. The first period of low volume is usually result of denial on the part of people who recently bought.
Reality says
RWSGFY says
Wasn't the Great Depression basically a bout of severe deflation? I don't remember accounts of people being very happy about it.
The Great Depression was the result of FED forcing inflation between 1926-1928 trying to extend the bubble of the "go-go 20's," so that insiders could unload onto the masses.
But then deflation kicked in, didn't it? Deflation is good, right? Why nobody was happy about it?
« First « Previous Comments 51 - 90 of 189 Next » Last » Search these comments
patrick.net
An Antidote to Corporate Media
1,196,535 comments by 14,074 users - FortwayeAsFuckJoeBiden, Patrick online now