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Wandering_Dog

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  1. Sounds like a strategic error. Coil, as much as any crypto firm, should be recruiting congressmen, everything else is irrelevant.
  2. If the behaviour is cartel-like, they won't steal customers. They will divide the market and both have high margins.
  3. Not really, the CEO stated he could pass on any savings or increase margins for shareholders, the latter appeared to hold more emphasis during the interview. Assuming the sector exhibits cartel-like behaviour, you will likely see fees held constant as profit share increases.
  4. "trying to solve the payments problem." You solve payments problems by passing a law. But boy, what great salesmanship
  5. Lots of problems with that medium article. How is he calculating flow and why does he think exchange (flow) is output capacity?
  6. Keeping a ponzi scheme legitimate in the eyes of the public requires hiding illegal activity behind "obviously" legitimate market behavior. Coil is an adept way to promote the belief than an increase in dumping xrp on retail investors from multiple parties is not a ponzi. Xpring, Coil, courting the IMF, or just being present in the "courts" of financial elites' increases directly or indirectly the rate of dumping which the public will accept. Ripple and xrp will likely become the greatest example of retail fraud in history after an Enron-like implosion.
  7. Inflation is low is western economies, below 2%. In what way is hyperinflation, resulting from backstopping a deflation, the problem of the global economy at the moment? There is nothing new about using real tokens as a form of settlement or a unit of account. It's actually a recreation of historical monetary systems, such as the gold standard, that collapsed due to instability. So you've made 2 statements, both false, and you haven't support either with data that states otherwise. I want to help you understand, but you would prefer a life of blind fanaticism I think. Do Mehrlings course, its online, its free, you listen to him talk a couple of hours a week, its easy and has all the info you need to understand why XRP won't work.
  8. It shouldn't. The gold standard existed, which was a fixed quantity settlement system, and it failed, because you can't create more gold when you need to. I can't ELI5 for you because you think money fundamentally behaves in ways it doesn't. And when I try to show you how money behaves, you lose interest. In the simplest terms, the prices of assets stay where they are because people can make the required payments on them. The holder of your mortgage, their asset, your liability, knows it's worth 100,000 because he sees a person with good credit history having not missed a payment ever, and they believe this behaviour will continue in the future, so they will get their 100,000 plus interest. When you stop making payments, they want to sell that asset--because they would rather accept less than face value today than get nothing in the future, but also because they need to make payments, and losing your payments reduces their income. So the holder of your mortgage faces a situation where their assets may suddenly be reduced in value (risk of you defaulting), or they can't make payments (because you missed payments). So they sell your mortgage, simple decision. When lots of people sell simultaneously, prices fall, because their are too few deposits available to purchase the assets and sellers drop prices until they offload that mortgage. Which leads to more selling, and more price reductions. In order to stop this process, someone needs to offer to purchase all the assets. The problem is that the total amount of assets, the face value of it all, is more than the amount of deposits in the system, in this case reserve deposits at the Federal Reserve, or in an XRP world, XRP. This is because you can make many contracts based on the same deposits, or XRP. I can loan you deposits, you can loan it to someone else, someone can create multiple derivative products on it, and so on. When you say, well, the price of XRP in terms of those assets will ensure that someone can buy everything, does not recognize that the issue is perceived risk, as the holders of the settlement asset, reserve deposits or XRP, have no interest in buying anything today that may be worth less in the future. The market for money is frozen. The party who offers to buy it all, "backstopping the system", must be indifferent to that risk. The only entity who is be indifferent to loaning funds out and never being repaid is someone who can create those units. I have to find a way to communicate this simple dynamic to you Tiny, as you are representative of everyone. If we cannot explain to you how it works, , then no one will know what they should be voting for. We need to find your ELI5 explanation.
  9. Jesus Tiny, you want to make it more complicated, but then complain that its too complex and you can't be bothered. If it's simple, its wrong because its too simple. Throw a dog a bone. Big hires Tiny, pays him a wage for a service. Tiny uses the wage to make a loan payment. wage = +$25 Tiny, -$25 Big repayment = -$2 Tiny, -$1 BankA, -$2 BankL Bank: A = Credit Card ($99), L = Deposits ($98) Tiny: A = XRP (400) + Deposts ($23), L = Credit Card ($99) Big: A = Deposits ($75), L = 0 What's happening to the amount of deposits in the economy (the money supply)?
  10. You have a credit card. It's new. You go to a website and you buy XRP with the credit card. Aseets, or A, and Liabilities, or L, of three people in an imaginary economy, where Tiny buys XRP from Big using a credit card: Bank: A = Credit Card ($100), L = Deposits ($100) Tiny: A = XRP (400), L = Credit Card ($100) Big: A = Deposits ($100), L = 0 You with me?
  11. Just so you are aware Tiny, the German banks created the money lent to Greece, as that is what private banks do, create the money supply. This lending was a function of rate compression that took place after the creation of the Euro itself. So, after creating the money, they ran a narrative campaign to demonize the Greek public as profligate spenders, as they organize using tax revenue from other parts of the Eurozone to bail out the banks who were the asset holders of the that debt. So, when you say "Greek Crisis", be aware of the narrative you are participating in.
  12. Right, to answer your question: "So let’s say there was a Greek crisis and Greece couldn’t meet its XRP liabilities to the EU. Three possibilities, they are either bailed out, the debt forgiven, or they default. How does the inflated USD come into that in the current situation? It doesn’t does it? So why would XRP need to inflate to resolve that?" Let's imagine that the EU has an account called "EU's account" and it's located on the balance sheet of the Bundesbank (not true). And that Greece's Treasury holds an account at the Bundesbank for making payments to the "EU" (not true), who is the holder of Greek government bonds (not true). Because the Greek government is either "unable" or desires not to pay their coupons to the "EU's" account at the Bundesbank (not true) they have 3 choices : 1) They are "bailed out"--here we'll define being bailed out as a transfer of Euro's from the IMF's account at the Bundesbank to the Greek account which is then transferred to the "EU's" account. 2) They are "forgiven"--here we'll define debt forgiveness as a deletion of the bond balances in the "EU's" account at the Bundesbank, which is a reduction of their total assets. And, a deletion of the loan balances in the Greek account at the Bundesbank, which is a reduction of their total liabilities. 3) They "default"--here we'll define default as in (2) above, both balances are deleted. The question is "How does USD come into that situation?". The answer is: The US Fed steps in and purchases the total amount of the Greek bonds in the "EU's" Bundesbank account by adding a corresponding amount of USD to the account of the "EU" at the Federal Reserve in New York. The Bundesbank deletes their assets, the NYFed adds assets to its ledger representing the Greek gov debt contracts, and adds reserve deposits (liabilities) to the "EU's" account. The US Fed then says to the Greek government, "This debt does not need to be repaid". Alternatively, Greece defaults on those bonds anyway, in either case, the Fed is unaffected. The net change to the total system is an increase in dollar balances at the Fed held by the "EU", which they can spend on goods and services denominated in USD, which will increase demand for providers of those goods and services--who may be located anywhere in the world, increasing demand for labor (jobs). Alternatively, the "EU" can then exchange these USD reserve deposits for financial assets, which will increase asset prices, assuming the distribution of those assets is already highly concentrated. A couple things. First, this isn't how it works, the "EU" clearing system (Target2) doesn't function in such a simplistic manner. Second, holders of Greek debt aren't "The EU", although the Germany private and public sector do hold the majority of Greek debt by accounting definition they must, given their surplus. Saying that a loose collection of states contractually obligated to use a foreign currency in all exchange holds the debt of one of the member states misunderstands who holds that debt. More importantly however, it misunderstands why that debt exists in the first place, which is because Germany desires to hold positive balances on the rest of the world (a surplus). So long as DE wants it surplus, someone MUST be in deficit, and endogenous financial shocks resulting from the credit cycle will lead to short term decreases in tax revenue for deficit states, which will lead to default, by definition of a financial cycle! They are literally creating their own problems, and blaming someone else for them. But I digress. Now, let's add XRP to this situation, replacing USD. No one can step in to assist Greece. If Greece does not pay, there are defaults, asset prices fall, and nothing can stop the impending deflation. The result is a global depression. Asset prices continue to 0, unemployment tends to 100%, the entire system returns to the origin, and all countries suspend XRP payments, all systems of political organzation, such as the EU, are exited, as member states relaunch domestic currency investment to boost demand and reduce unemployment--assuming that militarized facism does not return, the outcome is still not good.
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