Zarathustra
Well-Known Member
- Aug 28, 2015
- 1,439
- 3,797
@rocks, that's what I say. Silver was just a fraction of total debt. An economy is always about debt. Commodities have been standardised to serve/pay debt. Money is a weasel word. Some claim that bank accounts and even bank notes are not money. I say with Graeber that debt is the real money and grain, metals and other commodities are what they are: commodities. Gold became valuable since the war lords (church and state) demanded it. They needed it to produce weapons to control those who have been forced to deliver it.
"The history of violence of the precious metal" by Dr. Paul C. Martin:
https://www.goldseiten.de/content/kolumnen/download/pcm-17.pdf
To me, this is a joke.
It's what Thomas Cole painted:
No, they could not. A currency is backed by trust. Not by commodities. Code/metal is not law. The societies define their law.
Do we need a politbüro to set the leverage quota for banks and the central banks? In Switzerland, it's the people who directly vote whether they want their currency fully backed or not. They voted against it, because Switzerland wouldn't be able to compete in the economy if they reduce leverage to medieval level.
"The history of violence of the precious metal" by Dr. Paul C. Martin:
https://www.goldseiten.de/content/kolumnen/download/pcm-17.pdf
According to this definition, we live in a moneyless environment.The debt issued represents future promises on either money (physical metal) or currency (government notes). If the debt is issued against money, in times of stress governments always reneg and issue currency to fulfill the promise, this is what FDR did btw.
The debt issued represents future promises on either money (physical metal) or currency (government notes). If the debt is issued against money, in times of stress governments always reneg and issue currency to fulfill the promise, this is what FDR did btw.
To me, this is a joke.
That's how the economy/society (=hypercollectivism) works since its invention thousands of years ago! Rise and fall. Tainter's law. It's not something stable that the aristocrats from Vienna painted.A monetary system cannot have too much leverage in it, if there is too much leverage then at some point there is a run out of currency (banks, notes, etc) and towards physical base money, which depletes the reserves until the system breaks.
It's what Thomas Cole painted:
- 1.1I The Savage State
- 1.2II The Arcadian or Pastoral State
- 1.3III The Consummation of Empire
- 1.4IV Destruction
- 1.5V Desolation
![](https://images-na.ssl-images-amazon.com/images/I/71ziWPYohJL._SX425_.jpg)
Empires didn't need central banks to collapse. They didn't need central banks to leverage the economy.And this is how it worked for 5000 years, if too much leverage was introduced it broke the system. This was how currency and debt was kept reasonable and honest, usually more than a 1-to-2 ratio caused issues. The invention of central banking changed this.
Venezuela, Zimbabwe, Argentina, Turkey ...With central banking governments removed the concept of money and made currency the base supply. Now they could create all the leverage they wanted, because the mechanism which would stop leverage were removed.
No, they could not. A currency is backed by trust. Not by commodities. Code/metal is not law. The societies define their law.
Do we need a politbüro to set the leverage quota for banks and the central banks? In Switzerland, it's the people who directly vote whether they want their currency fully backed or not. They voted against it, because Switzerland wouldn't be able to compete in the economy if they reduce leverage to medieval level.
Ask Maduro. It's backed by trust. It works as long as people trust their economy.Now if there was too much leverage and the monetary system couldn't pay out (because lets say goldman sacks is leverage 50-to-1) the central bank could print currency to stop a run.
They can print paper Bitcoin like they print paper gold.This printing to stop a run is what as prevented normal mechanisms from keeping currency and leverage in check, and allowed both to run wild. (BTW if you are leverage you are forced to go bankrupt, while governments and banks get bailed out)
The vision of bitcoin I signed up for fixed that. LN would not.
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