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|#9 - A bank makes more money. Our current money has its value based… [+] (15 new replies)||02/01/2014 on give a man a gun||-7|
#11 - tomahawkit (02/01/2014) [-]
in other words, the federal reserve, the section of government in charge of printing more money, stole your money.
if you don't like banks, don't have a bank account. if you don't like inflation, don't use united states currency. no ones forcing you to accept anything
#29 - 2scared2login (02/02/2014) [-]
The Federal Bank isn't part of the government, it's a private company in charge of regulating the USA's currency.
#28 - cronois (02/02/2014) [-]
"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."
How can a state repay its debt in only Gold and Silver if the Gold and Silver aren't minted at the federal level?
#34 - tomahawkit (02/02/2014) [-]
some background to clear some things up. the constitution was written before the civil war. before the civil war every one thought of the united states much like the European union today. the states had as much power as a country but the federal government really only could put down guidelines the states may or may not follow. so really, in this case the states would have their own minting machines and mint their own currency. after the civil war the united states pretty much became one country. giving more power to the federal level than to the states. in this case, the federal government would print a universal currency. section ten made it so that if a state had a debt to another state, the couldn't just print off more paper and be done with it. they could still mint money, but it had to be backed by something other than trust. so they decided on gold and silver.
/political history lesson
#30 - madcoww (02/02/2014) [-]
I understand your allusion to the Dutch tulips in terms of speculation. I agree, speculation can turn sour. However, tulip bulbs are poor currency. The promise of bitcoin that makes it so valuable is that allegedly no more will be produced. Thus, we will have a durable and rare form of currency if it can reach general acceptance, which it may not. The important idea to combat is inflation, which is a vicious tax by the government that must be stopped for the sake of economic success.
#50 - kingpongthedon (02/02/2014) [-]
Inflation occurs naturally, it has very little to do with government intervention. In fact, government intervention slows the rate of inflation significantly. Here's a brief overview of how it works:
Farmer A needs to make more money to sustain his farm so he charges Baker B more for wheat flour than he did last year. In turn, Baker B must increase the prices he charges Consumer C for a muffin. Consumer C demands higher wages from Employer D to continue buying those life-sustaining muffins. Employer D begins charging more for the tractors he produces to pay for Consumer C's increased wages. Farmer A needs to make more money to sustain his farm...
On the other hand, Farmer A needs to make more money to sustain his farm. Government G recognizes that Farmer A provides an invaluable product and subsidize his farm using taxes collected from the people that was already in existence. Government G has had the power to create money stripped from them to prevent hyperinflation. This power is exclusively held by Federal Reserve F, an independent entity. Federal Reserve F creates (and destroys) money to account for increasing populations, changes in effective power of currency, technological advancements, and other factors to maintain a reasonable rate of inevitable inflation.
A good currency cannot be tied to it's physical value as these are prone to wild fluctuations, no matter how constant the supply is. It's value needs to be determined entirely by it's purchasing power. This essential requirement eliminates all tangible goods. Bitcoins are no different than any other fiat currency. In fact, they are currently subject to much more erratic fluctuations than any other recognized currency, with the exception of Zimbabwe's.
TLDR: Inflation is inevitable and a stable currency needs independent oversight, something Bitcoin and tangible goods absolutely do not have. Euros and American Dollars are by far the most stable effective currencies at the time.
#98 - madcoww (02/02/2014) [-]
If people truly want wheat, they will spend more of their paycheck for it and therefore spend less on other things. These other things will need to either charge less or go out of business. These are the natural and good workings of a free market. Thus, the commodity wheat has increased in value just as much as everything else has decreased in value. This is not inflation. Inflation is a general rising of prices, which is ONLY possible through a surplus of money, which can ONLY be caused by the issuance of more money.
#114 - kingpongthedon (02/02/2014) [-]
Inflation is the decrease of the purchasing power of money. I assure you, it's not flawed. It's the basis of Modern Economics. What you said is absolutely true in a Classical Economics sense, however it's been heavily modified. It's still the basis of economic policy, much in the same way Newtonian mechanics dictates the events of our day-to-day life, but when it comes to large markets it falls apart.
Furthermore, supply and demand isn't nearly as effective at regulating prices for necessary goods, like staple foods or medical care, as people will buy them regardless of the cost. It also doesn't work well with massive projects, things like building infrastructure and again, farming. Few people have the capital necessary, so an oligopoly is inevitable without government assistance. Think about how few phone and car companies there are. It also doesn't work well with low/no-income purchasers. They don't buy things they want, only what they need. Chances are the business is dependent on their labor, workers have become increasingly specialized since Paine, this has given laborers more leverage to ask for increased wages. Plus, all good businesses accept this as a fact of life and realize that if they don't fall in line with economic trends then they will be out of business in a short time. As long as they have a new product that can keep up with the trends, they'll be just fine. This is the premise of the price/wage spiral.
There's also supply shock inflation. Classical Economics typically assumes there's a near unlimited supply of resources and as long as somebody is willing, they can get it. This is simply not true. Prime examples are arable land and oil deposits. Prices have to rise to account for this. Since they are so widely used in our society, the increase in their costs will cause a ripple effect through almost all goods.
There's a ton of other natural causes of inflation, but these are by far the most powerful.
|#4 - You are puerile and easily amused. [+] (1 new reply)||11/25/2013 on a-mazeing||+1|
|#9 - Picture||11/25/2013 on (untitled)||+1|
|#118 - Look as much as everyone likes to jump on the whole bandwagon …||11/17/2013 on Every boys dream||0|
|#21 - Sweet.||11/16/2013 on Good Bible||0|
|#2 - Saw something like that once, a squirrel raised by cats. It ev… [+] (1 new reply)||11/16/2013 on Had to do a double take||+1|
|#40 - That made me laugh way to hard and way to long||11/16/2013 on Poison||0|
|#32 - Thanks i feel much better||11/10/2013 on Well played...||+12|
|#25 - >Buy Battlefield 4 >howbadcanitbe.png >12hour… [+] (13 new replies)||11/10/2013 on Well played...||+107|
#78 - 2scared2login (11/10/2013) [-]
That's why I'm torrenting it now.
No point in multiplayer on a shit game lol.
|#5 - Nintendo is very strong in the handheld department. And the Wi… [+] (2 new replies)||10/17/2013 on MFW people doubt Nintendo||+22|