768300+ entries in 0.55s
MisterE: I
think we have seen
the bottom
today boys
cerelenius: misterE; LOL not a single bank in
the US or europe has 10% currency reserves
cerelenius: misterE lol no
there isnt,
the fed hasnt set reserve requirements since
the 80's
cerelenius: "reserve" means a
tier 1 asset which is a US government bond
mjr_: if you were selling your car...how would
this matter
to you?
mjr_: you said
they CAN'T and DON'T
mjr_: there are accounting rules for doing exactly
that
cerelenius: misterE;
they can only write down a
tiny % of it before
they are insolvent.
cerelenius: and
that caused
the system
to be insolvent
mjr_: so
they CAN forgive it
cerelenius: in
the united states about 2.5% of mortgage holders defaulted
cerelenius: a bank can
take loses on max 1-2% of
total debt
MisterE: in
the end we'll knock 4 or 6 zeroes off of
the end and it will be business as usual :p
mjr_: and you "forgive"
that debt if i do you a favotr
Vexual: i al comes out in
the wash
MisterE: you can blow up bubbles in
the mean
time
mjr_: they have "value" because someone is willing
to
take
them
MisterE: eventually
tha check comes due
cerelenius: meaning
there is a shortage of dollars
cerelenius: total debt + interest surpasses all available dollars at a given
time
cerelenius: mjr: all dollars exist via debt. do you understand
this concept
mjr_: how many dollars do you HAVE
to accept
Vexual: youre broke, you can't afford
to make a graph
mjr_: if you were
to sell your car
MisterE: BTC is different because
the community decides on value without government influence
cerelenius: debt is denominated in dollars so you need
them
cerelenius: its becuase of debt.
theres always a shortage of dollars
cerelenius: its not becuase
the government says so lol.
mjr_: and
that is where your point gets stupid
mjr_: the price is set on
the open market
cerelenius: someone is constantly in need of dollars
to pay debt
mjr_: in our USE of
them
they have nothing
to do with debt
MisterE: mjr_: you don't
think
the current syetm is sustainable do you?
mjr_: dollars are USED as
tokens
mjr_: i seriously don't see why you are
talking about
this, so maybe i missed your main point?
cerelenius: when credit is first created its inflationary for
the rest of its life its deflationary
MisterE: the soviet union was far better prepared for a crash
than
the US is
mjr_: why does
that matter at all
cerelenius: mjr go back
to buttonwood meetings with your btc lol
MisterE: I'm just running back and forth in
The Enterprise
mjr_: in other words, 100 can circulate
to pay 100,000 worth of needs
cerelenius: MisterE: i hope im making sense
to you because mjr is on a different planet.
Vexual: cerelenius, you're a
two
toned fuckstick
mjr_: but debts have
the interesting factor of
time
cerelenius: look at
that 08 dip and it nearly blew out
the entire system
mjr_: if you had
to pay
the debt NOW
then it would be impossible without creating more
MisterE: most people are mortgaged
to 10x
their 10 year net worth
mjr_: sorry just not
true
MisterE: we're not even
talking about personal liabilities yet
MisterE: sorry but he's starting
to make sense
mjr_: there is 100 dollars
total
mjr_: here is
the most
trivial example
mjr_: and obviously not
true
cerelenius: because we dont have money in
the
traditional sense
mjr_: i
told you
that if i gave you $5, your debt is my asset
cerelenius: new dollars must constantly be created
to pay off old debts
cerelenius: misterE:
total debt+ interest always exceeds available dollars
mjr_: you do know
that right
cerelenius: mjr i already
told you look at
the fed balance sheet its painfully obvious
mjr_: so you are saying
that we have a fully backed currency
MisterE: are you saying
the sum
total of assets denominated in USD is less
than
the sum
total of USD denominated debt?
cerelenius: like if you want 100bil of printed dollars you have
to post 100bil of
tier 1 capital assets
to
the fed
cerelenius: and
they have
to post an asset
to back it
cerelenius: they only buy printed dollars when a bank rqurests
them
cerelenius: mjr
the physical dollars are backed by fed assets(debt)
mjr_: but
there are dollars not created via debt
mjr_: they pay all costs
to manufacture or mint
MisterE: nobody uses physical at
that level
cerelenius: when
the federal reserve orders dollars in physical format
MisterE: where you
think
the money for QE is coming from?
mjr_: you said "every dollar is a debt, it can only be created
through debt"