4 ms·
Not being backed by 'hard assets' is not the same thing as being backed by 'nothing.' Generally this belies a serious lack of understanding of where money come
by arcticbull 4y ago
Not being backed by 'hard assets' is not the same thing as being backed by 'nothing.'
Generally this belies a serious lack of understanding of where money comes from and where it derives its value.
If I go to the bank, and borrow money for a house in the form of a mortgage, then new money is created. An obligation to repay that money is also created. That obligation to repay is collateralized by my house. In this case, the new money that was created was in fact backed by hard assets.
More generally the value of money is derived from an obligation to repay the debt that created it, and the legal system and framework which enforces it.
- latchkey 4y ago“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
- arcticbull 4y agoI know that's in reference to the UK, and I don't know how their bailout system worked, but I know how the US one worked. These loans were repaid in full and generated a $110B profit for the US government. [1] [edit] Note also that the US bailouts weren't monetary policy, but fiscal policy. They were administered by Treasury, not by the Federal Reserve. Now do the Wormhole bailout by Jump lol. [1] https://projects.propublica.org/bailout/ https://projects.propublica.org/bailout/
- latchkey 4y agoThat is the message encoded in the first bitcoin block.
- CyberDildonics 4y agoThat's a loan being back by a hard asset, not the actual currency. If you have a stack of 100 dollar bills, where do you take them? What debt are you repaying or what can you exchange them for? I think you are diverting from having such a hyperbolic reaction to someone else's comment. They pointed something out and you launched into some sort of conspiracy nonsense that they didn't say.
- arcticbull 4y agoSorry but I know based on our previous interactions you've no interest in engaging in good faith so I'm going to leave this conversation here. You're welcome to DYOR on how the monetary system works.
- CyberDildonics 4y agoSeems like projection when you can always just confront what I'm saying. I didn't write much, but you are just avoiding it and restating part of what you said before. Also do you realize you are accusing people of "bad faith" when you replied to someone and said "I'm sure they're just waiting for their fiat shill check form Soros.".