807500+ entries in 0.426s
mircea_popescu: "it had
to be melted for
transport" says
the official story.
mircea_popescu: fun fact :
the us has been quietly returning gold
to germany
mike_c: well,
they do
trip occasionally and
then got shot right out on
the
track.
pankkake: and why ponygirl races are more exciting
than horse races
Duffer1: watching water boil is more exciting
than nascar
mike_c: totally agreed!
that's why horse races are more exciting
than nascar.
mike_c: that's a big problem with bitcoin. you can't roll up a fat stack with a rubber band and slap
them on
the
table.
KRS1: like..if I have a wallet, I need it
to be deep for fat stacks, but if its cold I can't exactly whip it out
KRS1: is it better
to have deep or cold storage
Duffer1: er nm i suppose
that wouldn't matter for
theft insurance
Duffer1: dunno what
their policy is if/when it goes below
that..
Duffer1: you pay more
to insure at x value of fiat
Troic_: 2% of
total cover, in GBP
mike_c: whoa,
they use "deep cold storage".
that sounds better.
mircea_popescu: course reddit is about as likely
to change weather patterns as it is likely
to have any impact on
this matter, but naywya.
KRS1: i
think
they did something about it..ghash.io isnt maybe
mircea_popescu: before
their pliant attitude
to
the -dev chan pretty much cost
them
their business ?
Duffer1: 42+% of
the network + attempted double spends on gambling sites
mircea_popescu: i guess
this explains why elegius actually found a coupla blocks
today
Duffer1: too many of
the gigahashes
deanclkclk: because, if bank A give
to Bank B...bank A is decreasing it's money stock and giving it
to Bank B
deanclkclk: but, if
the banks are funding
themselves..would
that not increase
the
total stock of money?
mircea_popescu: if it is
the central bank you have by any sensible definition a central command economy like
the soviets, and even discussing "banks" is just a masquerade
mircea_popescu: the interest
they settled on becoming
the "fair" interest for everyone, smaller players
mircea_popescu: this is why
the libor originally existed : so banks can liquidify each oth\er
mircea_popescu: someone will have
to, as
the 9 loaned out are loaned on
terms and can't (in
this example we use) be recalled.
deanclkclk: liquidity provider in
this case will be
the central bank
deanclkclk: ohh so
the liquidity provider funds
the 10 dollars
to pay back
the depositor?
mircea_popescu: it goes from liabilities 10 (depositors)
to liabilities 10 (government) or w/e
mircea_popescu: nope. you still owe 10, but not
to depositors anymore,
to liquidity provider instead.
deanclkclk: but, with a deposit being 0...wouldn't
that cause
the
T account
to not be balanced?
deanclkclk: yes I know mircea_popescu but, I'm just wondering how would
that show on
the account
mircea_popescu: note
that accounting generally is just a convention, and it may be uniquely adequate or uniquely inadequate
to resolve any factual problems. in some formulations inflation is opaque
to accounting, in some others quite
transparent.
this doesn't make inflation go away, even if it's very
tempting for all governments historically
to pretend so.
mircea_popescu: this bank now owes
the 10 it owed before, except not
to its original depositor.
mircea_popescu: step 2 : withraw
the 10 : deposit 0, loan 9, reserve 1, owed 10
to liquidity provider
deanclkclk: yeah
the 1 dollar is
their current asset
deanclkclk: how would
that show on
the banks
T account?
deanclkclk: so what if..the depositor wants
to withdraw his 10 dollars
mircea_popescu: now,
the monetary mass at
the cb level is 100, and
the monetary mass at
the cb level is 500
mircea_popescu: central bank creates 10 bucks. pushes 2 each
to 5 commercial banks.
the banks loan out 50 bucks each, on
the grounds
that
they are required by cb
to keep 10% in reserves.
deanclkclk: I'm just wondering how
that would show
deanclkclk: well if someone can show me how
that would reflect on a
T account..it would make a whole lotta sense
mircea_popescu: myeah. best i can
tell, you've painted yourself in a corner
trying
to understand
this and now nothing makes sense.
deanclkclk: if
the depositor withdraws from his account ...how would
that show on
the
T account?
mircea_popescu: am i running fractional reserve whorehouse ? no. do you still get
to have sex, even if your own wife is out ? sure.
mircea_popescu: well, you've constructed it so it doesn't make any sense.
take a better example : say i run a whorehouse and you bring me your wife.
then one day you want
to have sex. just because i've sent her
to work
the streets of mexico doesn't mean you can't have sex,
deanclkclk: but, it is said in a fractional reserve bank...the depositor still has access
to his deposit even
though it's loan out
deanclkclk: in an investment bank...one which
the depositor can't withdraw from his account because, he knows
the bank doesn't have it (it's loan out)..that's isn't inflationary
mircea_popescu: if in 2010
the
total volume of payment insturments is 5, and in 2011 it's 6,
then you've had a 20% inflation.
mircea_popescu: that'd be rising prices.
traditionally inflation is defined as
that state where
the monetary mass increases.
deanclkclk: if
the depositor withdraws money ..it comes from
the bank reserves
deanclkclk: what is loan out (asset
to
the bank) is always equal
to it's liability (deposit)?
deanclkclk: well just looking at a
t account..how can fractional reserve banking be inflationary
deanclkclk: anyone here who's a money manager? I want
to ask something about fractional reserve banking
truffles: blog
topic im interested in, are smart people in general more selfish
ozbot: Mork Meets
The Fonz - YouTube
truffles: he made
the jump, whats
the derp about
mircea_popescu: i
take it back, i've nothing
to do with
that
toothy derp.
mircea_popescu: ol wait,
this is
the original "jump
the shark" show huh ?
ozbot: Fonzie Jumps
the Shark on Happy Days (Episode 5.3) 1977 - YouTube
truffles: well its not
that great of a show
truffles: so ure not saying ure not a complete asshole but on
the cusp?
mircea_popescu: i am starting
to suspect
the main reason rich people become assholes is
that
they eventually get sick of all
the poor people who refuse
to see
the difference.
mircea_popescu: bitbet is hysterical, all
these volunteer armchair pilots for it.
truffles: coinye brought it up with
the swag
KRS1: i've been expecting a drop, not
this rise =/
KRS1: so do you all
think ghash.io is going
to harm
the network
Vexual: gin is served with ice, vodka should be at room
tmep
Vexual: i
think bongo is alergic
to vodka
truffles: i may have
to step away based on events in
the house ya know