| vettefever17 | 11-30-2018 01:37 AM |
Re: Bitcoin Addresses Sanctioned By US Government
Quote:
Originally Posted by phaz0rz
(Post 961122)
It does. :nerd:
| This right here sums up fiat currency. Banks can loan 9 out of every 10 dollars they have. The safety mechanism that keeps this in check is called the Basel Tiers. It keeps check of the appropriate liquidity that banks must keep or they get yanked of their lending capacity. The way many of these banks keep that measly 10% alive in well is when they sell the other 90 percent of loaned capital for cash or other assets. That is why the financial crisis wiped the tranches "layers of paper investments" out in a matter of hours. It was filled will pure turds and fugazi contracts. It not only margin called them on cash, it bankrupted them and the insurers of cash where the smart traders bet againsts them.
Another thing that might help the argument in this thread is the real meaning of inflation. Inflation is many times taught as too much money printed or out there caused by the government. That is true. But the key to understand things ahead of time is seeing from the seller's point of view. See, that seller knows he can demand more money and raise product/service prices. Hence, he inflates the over amount of cash and debt in the system from buyers. Inflation is really not always a printing problem, but a DEBT problem from creation by lenders/consumers and not just a printing problem.
As for gold value, it would be tough to use in certain aspects. But you have to remember gold obviously has a resistance to corrosion, can be used as a conductor, and has always been an asset to humans. Gold is controlled by usage demand AND the regular belief it is a safe haven. | 
