5 ms·

>The link you provided actually contradicts this statement. If Chartalism was a valid theory then no fiat money -- which required to be used to pay tax -- woul

>The link you provided actually contradicts this statement. If Chartalism was a valid theory then no fiat money -- which required to be used to pay tax -- would have ever failed. That is to say, history and time provide real-world proof[1] that Chartalism is a specious theory of money. At the end of the day though, if you know more than the market, take negative delta exposure to bitcoin and profit handsomely. [1] https://trader2trader.co/2012/11/28/list-of-590-dead-currencies-demonetized-r-i-p/ https://trader2trader.co/2012/11/28/list-of-590-dead-currenc...

dragonwriter 8y ago
> If Chartalism was a valid theory then no fiat money -- which required to be used to pay tax -- would have ever failed. That's...not a justifiable conclusion; there's at least two obvious failure modes consistent with Chartalism: withdrawal of the exclusive mandate for taxes to be paid in the currency, and practical failure of the State imposing the requirement. The latter, especially, is not a binary condition, and can easily occur in a mutual death-spiral of state and currency in response to some shock. Most collapses (or even temporary near collapses) of fiat currency I can think of were that kind of mutual death spiral with the sponsoring state resulting either from war or internal crisis of order.
omegaworks 8y ago
>if you know more than the market, take negative delta exposure to bitcoin and profit handsomely. "The market can remain irrational longer than you can remain solvent."
- DINKDINK 8y ago
  That aphorism is used by naive people who 1.) want to capture the upside of if they're right but suffer no penalty if they're wrong. 2.) Don't understand how to take low probability, high payout exposure: Buy a deep, out-of-money put you'll profit handsomely if right.

5 ms·

>The link you provided actually contradicts this statement. If Chartalism was a valid theory then no fiat money -- which required to be used to pay tax -- woul

by DINKDINK 8y ago

dragonwriter 8y ago
> If Chartalism was a valid theory then no fiat money -- which required to be used to pay tax -- would have ever failed. That's...not a justifiable conclusion; there's at least two obvious failure modes consistent with Chartalism: withdrawal of the exclusive mandate for taxes to be paid in the currency, and practical failure of the State imposing the requirement. The latter, especially, is not a binary condition, and can easily occur in a mutual death-spiral of state and currency in response to some shock. Most collapses (or even temporary near collapses) of fiat currency I can think of were that kind of mutual death spiral with the sponsoring state resulting either from war or internal crisis of order.
omegaworks 8y ago
>if you know more than the market, take negative delta exposure to bitcoin and profit handsomely. "The market can remain irrational longer than you can remain solvent."
- DINKDINK 8y ago
  That aphorism is used by naive people who 1.) want to capture the upside of if they're right but suffer no penalty if they're wrong. 2.) Don't understand how to take low probability, high payout exposure: Buy a deep, out-of-money put you'll profit handsomely if right.