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Wandering_Dog

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  1. Sounds like an angry neoclassical economics response. Monetary Post Keynesians predicted this crisis, the last crisis, QE's impact on prices, and much more. You can whine all you want about your models, you're wrong.
  2. That is what just happened. Without fed intervention, everything would have gone to zero. The Fed is really skewing your perception here. Just FYI, no one was buying, not even treasuries.
  3. The tax is a drain, its not spent back into the economy by the gov. You can see this for yourself by actually running the balance sheets.
  4. This is false. Gov doesn't tax to spend, your causality at the Federal level is reversed.
  5. More importantly however, is that inflation is not a function of the "money supply". The amount of money can impact prices, but its a small component for what is currently used to define inflation, which is consumption goods--these prices are sensitive to workers negotiation power, which is impacted by wage rates, household debt, and union representation. These prices are not particularly sensitive to increases in bank loans because the distribution of income and wealth is skewed away from workers.
  6. No, the money expires, regardless of who holds it, at the specified time. The question you want to answer is why would anyone accept money that they can't spend, if they are the final recipient. You can close that circuit lots of ways, the most obvious is to compel by law acceptance of the currency (legal tender) and for the gov to accept the balance from the final recipient for future tax payments. The money supply has not increased. Another way you can close it is by forcing all recipients to spend the balance on debt, while offering some kind of in kind gov transfer or tax credit for recipients with positive net worth. What it means is you clear out debts without substantial long term structural impact on the quantity and distribution of bank deposits or consumer preferences.
  7. Right... You have an account, it is represented by a positive number, something like 5.56. Then you have another account, represented by another number, say 5.57. The first account will have a balance of 5.56 USD until you die, the bank fails, or the currency is no longer supported. The second account will be reduced to 0 next monday, so you have until sunday 23:59 to spend the 5.57 of USD_time_limit_Monday. Say you don't spend it, the balance falls to 0. The idea is that you have multiple currencies which trade at par for one another, but some have characteristics which leads them to recirculate very quickly, then disappear. You can't build meaningful structures of debt on top of it, because of its temporal characteristics. People don't save it, because they can't. And any fear you have of permanently distorting the money supply is eliminated, because this currency disappears on a set date (for example). You can imagine an infinite amount of such denominations of money, decreasing with time, decreasing with transaction number, decreasing with whatever, give it a think.
  8. 'Run the system' means you enter some code on your computer to create a model and run a simulation. If you ran an economy with BTC or XRP in reality, you get a crash and then everyone abandons the currency. If you somehow forced everyone to not abandon XRP or BTC as the unit of account after the crash, civilization as you know it will end, as everyone becomes occupied with killing creditors, credit, and payment systems.
  9. Nope, just run the system for 10 to 25 years, and it happens every time.
  10. You can program a digital dollar if you wanted to, his statement is not fantasy, its just a political decision, and honestly it makes sense. Gabor mentioned this the other day.
  11. There is nothing. BTC and XRP are derived from an economic ideology that believes economic systems are self-correcting. Using now as an example, what would happen if we had an XRP or BTC based system: people scramble to sell all assets, no one buys, ALL prices fall to zero, unemployment hits 100%, total political collapse, civilization ends. And that's it.
  12. The Europeans do want the USD system, they are active, willing participants. When pushed to complete their own sovereign system with an EU Treasury and EU bonds, all the northern states reject it. ALL. So not only does the EU want the USD system, they don't want a functioning Euro system. No one in the EU is pushing for a USD substitute in any politically realistic way. Because, again this is not about system design its about control, the EU is now an apparatus for exploitation that extracts from the periphery and accumulates it in the northern core. There is no changing this politically, as the system has run for sufficiently long that the concentration of wealth in the core has captured the political systems, the only stable outcome is breakup. People still have to come to terms with this--it's already happened, its just a slow moving dynamic. We should expect to see, maybe in the next 18 months, a slow release of data connecting drawdowns in Spanish and Italian healthcare systems due to reductions in spending from austerity policies. Once this occurs, there is no political platform in either state that will be able combat a Italy or Spain EU exit--they simply won't be able to say "we are pro-death for our citizens". So the core center in both states that hold the exploitative dynamic together is about to be burned through, and once 1 Eurozone member leaves, the EU system fails, as target2 balances have no formal legal backing from the ECB and after 2 global financial crises monetizing German-held italian debt to preserve the system isn't going to go over well with other deficit states. Re: Fed foreign accounts, that's a good question. The Marshall plan would probably be a good place to start looking, as the Eurodollar started around there I think.
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