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Harry Sacks

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Posts posted by Harry Sacks

  1. 7 minutes ago, jiltedjen said:

    Another great post.

    It's hard for people to understand actual hard sound money, no one alive today has lived any length of time with sound money.

    One way or another, over time the sound money will have massive effects on our broken economic systems. 

    Personally i think bitcoin is in an obvious bull trap now, the bubble has burst. But come 2020 we will see £30k-£50k a BTC, another 20 years and bitcoin will be a real gold 2.0. You will see how gold is supposed to act when its not manipulated, via bitcoin.

    For those who own bitcoin now, they are protecting their futures long term if they can hold through all that time. 

    It's still not easy enough to buy BTC, but it will become much easier. 

    I was angry about my economic situation 5 years ago, and i'm quite a bright Engineer, slowly even the most moronic young person will start to wonder why they are broke all the time, cant afford an actual life. I have started to see this.

    There is no way politically the oldies will give up their grip, or the economy could survive short to medium term removing boomers savings + assets. BUT bitcoin is the silent bloodless revolution, unless you are youngish you wont understand the way bitcoin captures the zeitgeist. 

    The printing and impoverishment of the young will only intensify. Bitcoin will gain massive traction with the current and following generations of the young. You forget, we have had nothing, owned nothing, not even had futures, we are forced to live our lives via facebook, via the internet, via free entertainment, against that backdrop of our internet social lives (only life we are allowed to have)

    Internet money is not that different from the pretend internet money in your bank is it?, the idea may never gain traction with oldies who have had lives outside of the internet, maybe people who have owned houses, or through blood sweat and tears scraped together some assets or pension savings, like broken horses working the field accepting thats all there is and having some connection with the broken system after years of slaving under it.

    The young have some fight in them yet. I would be more open minded. 

    Massively deluded. There is only natural resources and labour. Bitcoin burns resources, the market produces nothing. How will Bitcoin finance anything ? It's worse than a speculative derivative, it derives its price (in fiat currency) based on the number of suckers it can reel in, not an underlying commodity of means of production.

    It's very clever marketing. I can see how it appeals to a generation who believe they are excluded from social mobility and live life online. It's another fairy tale, like the fairy tale of everyone going to Uni and getting fabulous jobs. The past 40 years has been about globalising capital and labour markets. The price of money and graduates has fallen significantly.

     

  2. 4 minutes ago, dugsbody said:

    And just how will this happen with a decentralised "currency" with no enforcement of contracts?

    I wouldn't bother, he is just repeating stuff he clearly doesn't understand. Total crap about "penetrating the economy", yeah right, after it's been sold for fiat. An Easter Island scenario is more likely. Cheerleading Bitcoin is just as insidious as ramping up house prices.

  3. 36 minutes ago, evetsm said:

    You've seen nothing. Irredeemable currencies took hold with a vengeance in 1913 with the establishment of the FED. Almost immediately 2 world wars and a great depression  erupted.That caused Bretton Woods to come undone in 1971, and all that you've described came as as a result of that. That is the root cause of all the monetary mayhem, inflating currency. (Volcker tried emergency resusitation in around 1980, when rates went to over 15% and crashed the world, but it soon resumed it's inflationary nosedive , until now when we are at zirp, and then nirp.

    Here's something else to read, from a sound money scholar with over 40 years of experience, Professor of Mathematics, mind you , not some dull minded economist :

    http://professorfekete.com/articles/AEFTimingHyperinflation.pdf

    We did all that stuff to death on here in 2004. Seriously mate, you've been listening to vested interests and libertarian cranks in the US.

    That link "New Austrian school of Economics" lol! I'm embarrassed for you.

  4. 5 minutes ago, evetsm said:

    Is that your best shot, it's on youtube ,so it's wrong ? Is that the sum of your learning ?

    Well, you're wrong. Don't have to watch youtube, start reading this, for one :

    https://mises.org/library/fiat-money-inflation-france

    I'm not sure how old you are but I'm guessing fairly young. I've seen it all before. 70s stagflation, 80s big bang, early 90s crash, ERM debacle, 15% mortgages, dot com bubble, property bubble, gold bubble and now this. Had the same arguments over again with different people at different times. They all said "it's different this time". Good luck.

  5. 7 minutes ago, evetsm said:

    Banks create credit from nothing ! Thin air ! That is why they inflate the currency. The currency is created from thin air when a loan is made, but the interest payable on the loan is not created , and so the interest must come from somewhere and it comes from other loans made. And in turn those loans don't create the money to pay that interest and so more loans must be made. Inflation is baked into this cake. Velocity is another component, and can account for interest payments, but the net effect is the same, at some point when the debt burden becomes greater that the ability to pay old loans , new loans cannot be made , consumption slows , velocity stops and the entire economy implodes. They call it the business cycle. It's not , it the loan sharking ,theft racket imploding in on itself.

    Money and saving are flowing into property. Have you been asleep ? Rent is the dividends that people are seeking that they cannot get from a bank.

    Why do you think people cannot find a deposit for a house , if they had savings ?

    Asset prices are driven up because people expect their money to have no value in the future because of inflation. Falling rates , the effect of inflation cause the net present value of assets to increase. But that same mechanism destroys capital. 

    Thanks for the standard Youtube explanation of money, really no need.

    You're wrong. Many developed economies don't experience property bubbles because their banking systems are encouraged to lend into productive enterprise, which is deflationary. The cost of production falls as new tech increases productivity. It's not what is used as money it's who controls the quantity. Fixed quantity money, as far as I know, has never been implemented successfully.

  6. Just now, evetsm said:

    No ! Money and savings flows into property when you get no rate of return in the banks, because inflation has driven rates to zero ! You have it azz backwards. No wonder you are confused by sound crypto like bitcoin

    You're very wrong here, I thought you understood money?

    Money and savings do not flow into property, banks create new credit against these assets. They direct new capital into specific markets, driving up prices. This encourages more participants in the market, and so on. It is the same with Bitcoin.

  7. 1 minute ago, evetsm said:

    Your confusing a ponzi with sound money. In the bootstrap of sound money(bitcoin) somebody had to get it first. But as time goes by and it reaches it's ultimate penetration of the economy, it will cease to increase much in value, and then it will start to be distributed to the most productive sectors to gain investment returns. Money flows to the most productive sectors in an economy underpinned by sound money. In reading through users accounts of their own bitcoin fortunes, it seems that already very few early adopters still have their coins. Most either just blew them(10,000 BTC pizza) or were spooked out of them during the various crashes of growth pains. That is the job of the market , to shake as many coins loose along the way as is possible.

    It won't flow into the productive economy, you're dreaming. It will flow into something unproductive and speculative, like..................property! But before that happens the smart money will cash out (into fiat lol!) and all the young mugs will take a massive haircut. Look at the chart, it is a screaming bubble!

    Innovation and productivity can take care of themselves, look at Tesla, no shortage of capital.

  8. 7 minutes ago, dannyf said:

    Time will tell. These points have all been discussed. If you’re happy with the status quo and the money printing when it all crashes then good luck. In the next 2008 scenario when the printing presses go into overdrive I want my wealth in something that cannot be printed

    I'm far from happy with it.

    The same Libertarian crowd that were all over gold prior 2008 are now on the Bitcoin bandwagon. They were so sure the bond market vigilantes would dump sovereign debt in the aftermath, yet the total opposite happened while the printing presses went into overdrive. The fiat system is massive and has a symbiotic relationship with The City and industry. It will take a lot more than Bitcoin to change that.

  9. 1 minute ago, evetsm said:

    We have a deluge of noobs today. You are stuck in the era of irredeemable , inflating fiat currencies. The dollar has lost 97% of its value, 80% of the in the last 30years. That's value stolen from savers, pensions and future generations. Children yet to be born will pay back that theft and will be born into debt. It's a criminal system of debt slavery. Is that what you are advocating ?

    The way sound currencies grow is by dividing them down into smaller fractions, the whole pie stays the same size. No inflation. As units increase in value over time(deflation) , the smaller units come into play and are demanded as currency. Savers are encouraged and capital is grown by investing the savings. Productivity is increased. Future generations reap the rewards and are born debt free, as far as the effects of currency inflation is concerned. That is as it should be in an equitable society.

    It's very similar to fiat as it hands over massive amounts of unearned income to those closest to its original source.

    "The dollar has lost 97% of its value, 80% of the in the last 30years. That's value stolen from savers, pensions and future generations. Children yet to be born will pay back that theft and will be born into debt. It's a criminal system of debt slavery. Is that what you are advocating ?"

     Bitcoin completely relies on successive generations to buy into the ponzi scheme, it is worse than the current system. It's also relies on mass delusion. Fair play to anyone that got in early and made a killing. At least it doesn't deprive anyone of anything.

  10. I don't see how they could ever be removed - there would be riots in the street. Good job, Brown.

    Tax credits are basically quantitative easing for the people. It adds to the pool of money in circulation. Remove tax credits and it would be yet another austerity measure that would make the problem they're trying to fix worse. Sales would fall and unemployment would rise. Debt defaults would increase.

    People in this country want a very high standard of living but would rather not do anything for it.

  11. lol, and people wonder why economists arent trusted.

    Economics has more in common with organised religion than science.

    A colleague of mine's parents bought in South London for £3k 50 years ago.

    According to this is money (sorry Daily Mail haters)

    http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

    It would be worth £52k if it had gone up with inflation. It has been valued at £1 million - now even if that is wrong by 20% that is an awful rise.

    Mortgage rates were 5.5% then so not much higher than now's first time rate of 3.99-4.25 %.

    Of course prices are under valued now.

    Creating and directing credit into a specific market. The outcome is obvious. The solution is to stop banks monetising homes.

  12. Wealth is shared all the time through production efficiency and innovation. Look at the products the majority of people use, cars, Internet, electronics. All these things are affordable. However, the banks and policy makers have ensured that the cost of housing yourself remains crippling, totally against the trend of all other material goods. Ci is treating the symptoms, it's not a solution.

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