mircea_popescu: bitbet is hysterical, all these volunteer armchair pilots for it.

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: .d

mircea_popescu: im a fonz, what are you on about.

mircea_popescu: i have no idea what it is, outside of a pulp fiction reference.

mircea_popescu: so indeed they'd be cool.

mircea_popescu: ( http://www.youtube.com/watch?v=QPPN_gkj_gk )

mircea_popescu: ol wait, this is the original "jump the shark" show huh ?

mircea_popescu: i take it back, i've nothing to do with that toothy derp.

mircea_popescu: sammy lee you've lied to me!

mircea_popescu: go ahead

mircea_popescu: you'll have to phrase that question better

mircea_popescu: what's your definition of "inflationary" ?

mircea_popescu: that'd be rising prices. traditionally inflation is defined as that state where the monetary mass increases.

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: 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,

mircea_popescu: i'll just hook you up with some other dude's wife.

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: ib just takes a liquidity loan.

mircea_popescu: myeah. best i can tell, you've painted yourself in a corner trying to understand this and now nothing makes sense.

mircea_popescu: time to re-examine your priors.

mircea_popescu: okay, fair enough.

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.

mircea_popescu: now, the monetary mass at the cb level is 100, and the monetary mass at the cb level is 500

mircea_popescu: that's a 400% inflation.

mircea_popescu: meh i cocked the math up. lemme redo.

mircea_popescu: kay.

mircea_popescu: you don't get to use the assets in there.

mircea_popescu: their liability is 10 and the assets 1.

mircea_popescu: this is a purely accounting q, but :

mircea_popescu: step 1 : deposit 10, loan 9, reserve 1.

mircea_popescu: step 2 : withraw the 10 : deposit 0, loan 9, reserve 1, owed 10 to liquidity provider

mircea_popescu: this bank now owes the 10 it owed before, except not to its original depositor.

mircea_popescu: nothing much changed.

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: nope. you still owe 10, but not to depositors anymore, to liquidity provider instead.

mircea_popescu: just as balanced as it was.

mircea_popescu: it goes from liabilities 10 (depositors) to liabilities 10 (government) or w/e

mircea_popescu: well yes

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.

mircea_popescu: in practice obviously some mix will be implemented.

mircea_popescu: it isn't the central bank in a functioning economy

mircea_popescu: this is why the libor originally existed : so banks can liquidify each oth\er

mircea_popescu: the interest they settled on becoming the "fair" interest for everyone, smaller players

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: well, how ?

mircea_popescu: so...

mircea_popescu: what's the problem with ghash ?

mircea_popescu: o

mircea_popescu: i guess this explains why elegius actually found a coupla blocks today

mircea_popescu: hasn't been seen since... spring ?

mircea_popescu: o seriously ? which ?

mircea_popescu: seems improbable

mircea_popescu: but that's... october ?!

mircea_popescu: Like a month ago, in September I witnessed a lot of double-spending against BetCoin Dice. I

mircea_popescu: herp. ghash has likely 0 to do with it.

mircea_popescu: clueless dice site clone guy can't read/doesn't understand what's going on

mircea_popescu: wasn't btc guild 49% back in march ?

mircea_popescu: before their pliant attitude to the -dev chan pretty much cost them their business ?

mircea_popescu: in principle no pool should be over 40%

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.

mircea_popescu: fun fact : the us has been quietly returning gold to germany

mircea_popescu: except... well... it doesn't have the stamps

mircea_popescu: "it had to be melted for transport" says the official story.

mircea_popescu: i doubt that.

mircea_popescu: Duffer1 well... depends how much you've been following the precious metal wranglings

mircea_popescu: mike_c course there's not really enough gold on deposit to be doing it

mircea_popescu: so unless china graciously decided to lend... or else maybe russia ?

mircea_popescu: or japan. india isn't, and there just aren't that many folks with gold

mircea_popescu: seeing how it's worthless and not particularly important in modern finance etc.

mircea_popescu: why not ? it's lending everything else...

mircea_popescu: nope

mircea_popescu: ip is the only thing it hoards.

mircea_popescu: and as the inept leadership oif the us has been giving them absolutely all the techs in the most incredible transfer of wealth/spoliage in human history,

mircea_popescu: i can't imagine why they'd care about lending a little gold so various us idiots can save a little face.

mircea_popescu: o, it's not sharing.

mircea_popescu: you don't get to see what it develops on top of what it loots from us corps.

mircea_popescu: they're putting a guy on the moon.

mircea_popescu: anyway, THEIR nsa isn't being riddled with fuckwith trannies that turncoat, so you don';t really know what they are doing.

mircea_popescu: in these qtys ?

mircea_popescu: kakobrekla omfg, rpietilla is chinese

mircea_popescu: he's eweirdo, wherever those are

mircea_popescu: rhutenia or latvia or somesuch. kaspiar.

mircea_popescu: kakobrekla anyway, that's kind-of culture shock. the chinese do that sort of thing in chinese all the time. very self-stroking culture, it's not quite as wow as in european terms

mircea_popescu: this 226 year old constitution forbids any law from forbiding stupid shit

mircea_popescu: so problem solved

mircea_popescu: .d

mircea_popescu: http://25.media.tumblr.com/f097a5e09b34362dd6cf21e0da6799b8/tumblr_mygm5duF6t1sd7fomo1_1280.jpg

mircea_popescu: "now where did i park again ?! maybe it was in the pink ?"

mircea_popescu: http://31.media.tumblr.com/9d8187023d73a491c19ff1f8da809ae4/tumblr_mxzpwdAw8X1s0yaxoo1_1280.jpg

mircea_popescu: buda, of course, is romanian for toilet

mircea_popescu: prolly serbia is the cheapest atm.

mircea_popescu: kinda funny to see women that look like women declared "eastern european".

mircea_popescu: you know us chicks would look exactly the same if you made them walk everywhere and cook.

mircea_popescu: and they did back when you did.

mircea_popescu: serbia isn't big enough to have a weather

mircea_popescu: KRS1 ie, german.

mircea_popescu: i think europeans are mostly brunette.

mircea_popescu: course, if you stick to german lands...