Black money

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  • #26
Pengwuino
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faust9 said:
Actually, yes. Industrialized nations rely on their respective central banks(ours is private but regulated here in the US) to regulate the amount of 'currency' in the system. Our money is not backed by a resource outher than the good word of the US as a good debter. In fact, there is even a term for the 'magical' creation of money from nowhere except the whims--educated as they may be--- of the central bank. It's called fiat money. http://www.investopedia.com/terms/f/fiatmoney.asp

Money in this day and age has no intrinsic value thus the creation and use of it is 'magical'. Money is only as valuable as WE allow it to be. WE accept that $20,000 is a fair amount for a New Beetle of Mini and WE accept that working for $15/hour is a fair trade for labor. The money itself is worthless---that is why some people place more value in money than others. Some people have to seemingly work harder for their money than others and as such assign more sentimental value to that which is essentially worthless. Pretty 'magical' if you ask me.

No, our discussion wasnt about the backing of money, it was burnsys claim that say, your local bank of america branch can just instanly open an account with say, a trillion dollars and give it to someone without any recourse. They never needed to have that trillion dollars in the first place according to burnsys so someone could just open a bank with no connection to the outside world and magically produce 1 trillion dollars for the first person who walks in. Magic in my eyes
 
  • #27
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Pengwuino said:
No, our discussion wasnt about the backing of money, it was burnsys claim that say, your local bank of america branch can just instanly open an account with say, a trillion dollars and give it to someone without any recourse. They never needed to have that trillion dollars in the first place according to burnsys so someone could just open a bank with no connection to the outside world and magically produce 1 trillion dollars for the first person who walks in. Magic in my eyes

For some reason this account of the thread does not jive with what has been presented in the thread. I don't recall reading anything by Burnsys to the effect of a magical trillion dollars which you use here as your example. In fact, your response was to Art which I took the liberty to correct you by stating the money is 'magically' produced. I found it odd that you chose to be so condescending when the reality of the situation is akin to 'magic'. Money is less valuable than lead ironically enough. The value WE place in money as a barterible resource is far far greater than any money or natural resources backing the dollar bills you may carry with you. Lead into gold or rather green ink into gold. Magic.

You might try addressing issues rather than condescending retorts in the future I might add. Just my humble opinion.

Mahalo.
 
  • #28
Art
faust9 said:
Money in this day and age has no intrinsic value thus the creation and use of it is 'magical'. Money is only as valuable as WE allow it to be. WE accept that $20,000 is a fair amount for a New Beetle of Mini and WE accept that working for $15/hour is a fair trade for labor. The money itself is worthless---that is why some people place more value in money than others. Some people have to seemingly work harder for their money than others and as such assign more sentimental value to that which is essentially worthless. Pretty 'magical' if you ask me.
Fully agree. In an earlier thread I referred to it as the 'Tinkerbell' system. Money only has value so long as people believe it does.
 
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  • #29
Art
A recent example of the power banks yield is the take over in England of the hugely successful, both on the field and financially, Manchester Utd FC PLC. (For those unfamiliar with British terminology PLC means a publically quoted company) by the American tycoon M Glazer for £790 million. He gained control of the club in a hostile bid by borrowing the purchase money from a consortium of banks. Now he is in control he can take the personal debt he incurred and transfer it onto the company's books and so he gets a valuable company for free, whilst the banks are delighted with the interest payments they will now receive from the club. Meanwhile the club gets nothing but a mountain of debt, thus restricting their future activities in the transfer market and a new owner.
The fans who morally at least are the true owners of any sporting club are outraged but what can they do? Some have supported the club all their lives so simply staying away in protest is not really an option for them.
 
  • #30
brewnog
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As far as I'm concerned, I'm working on a cashless basis already. I bought my car on Switch, I pay my rent over the internet, and I buy petrol on an account card. I always buy my groceries using plastic, and in the pub I just put my round on a credit card. I'm not so different from anyone else, but what's the problem? It's not like we use the gold standard or anything, our money doesn't need to be represented by material artefacts.
 
  • #31
Pengwuino
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faust9 said:
For some reason this account of the thread does not jive with what has been presented in the thread. I don't recall reading anything by Burnsys to the effect of a magical trillion dollars which you use here as your example. In fact, your response was to Art which I took the liberty to correct you by stating the money is 'magically' produced. I found it odd that you chose to be so condescending when the reality of the situation is akin to 'magic'. Money is less valuable than lead ironically enough. The value WE place in money as a barterible resource is far far greater than any money or natural resources backing the dollar bills you may carry with you. Lead into gold or rather green ink into gold. Magic.

I understand how you got so confused. This is in relation to another thread where Art and Burnsys showed very little knowledge on how the banking system works. Burnsys belief is that you can simply create a trillion dollars out of nowhere (because he compared it to himself being able to run a counterfeight operation in his backyard). This lead him to say something with a false basis that i addressed. As for the 17 year old loser thing, iwas talking about the person who wrote that blog because really... who would waste their time with such trivial matters?
 
  • #32
Art
Pengwuino said:
I understand how you got so confused. This is in relation to another thread where Art and Burnsys showed very little knowledge on how the banking system works.

ROFL Good one penqwuino I hadn't realised you had such a good sense of humour.
 
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  • #33
Pengwuino
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Thank you, thank you, i try my best
 

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