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This afforded him a nice apartment in Toyen

Source: The Guardian





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RE: Dammit...
By The Von Matrices on 11/1/2013 12:57:38 AM , Rating: 2
The problem is that the central bank and its associated government are inseparable even if they operate independently. In all major fiat currencies the government supporting the currency is also the single largest user of that currency. Therefore, that government indirectly influences the value and stability of that currency and the central bank has to correct for that.

The reason why governments don't like Bitcoin is because they can't control it. If you can't keep inflating your currency, then you have to pay off you debts because the interest payments become oppressive. You can't just continue to inflate your currency so that the real value of the debt becomes smaller and smaller.

In my opinion, I fully support government debt as long as it doesn't cause the currency to crash. The media has a bias toward government debt being a negative with no positive. In reality, the debt (a negative) is just from the government providing services to its citizens (a positive). The cost of these services not subsidized by taxes is paid through the loans citizens provide. Taking this to an extreme, if the government were to default, the citizens who provided the loans would be out of their money but they would also have had all the services and infrastructure that were paid for using those loans. They could have just paid taxes and have been out that same amount of money.


RE: Dammit...
By vol7ron on 11/2/2013 3:59:00 PM , Rating: 2
In my last comment, I don't know why "stable" was autocorrected to "stabile" - that was at no fault of my own and didn't notice it. Perhaps I've used "stabile" too much when discussing prototypes.

I'm not an expert, but I agree with the statement about control, but not because of their ability to affect inflation. In fact, inflation in the United States has been rather constant, which is great in terms of stability. Again, I'm not an expert, but I would surmise that the lack of control makes it harder for regulation. Private sectors are generally great at invention and innovation, but they can also be really bad when it comes to greed - consider profiteering, collusion, and intimidation. Bitcoin has the potential to be both really good and really bad and it's the bad reasons that I tend to play the conservative card.

The problem with government debt is there is such a thing as too much. The media likes to play it up for ratings, but the government could be a little more intelligent in how it allocates its finances. Remember, this income is coming from businesses, taxes, tariffs, foreign countries, etc. but people want to have a say in how their taxes are spent - after all, they are doing the work for that money.


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