How is that different than the same old system of money before Digital Currency?

[mr001]

This is a good tread to contemplate on it.
http://www.reddit.com/r/CryptoCurrency/comments/1sjkto/your_opinion_on_what_i_see_as_myopia_in_the/

[MadeTran]

Interesting thread but the difference is easy to point out, even though the reality isn't going to create some utopia where everyone is always happy.

Deflation VS. Inflation

Inflationary money loses value (1 unit buys such and such today, it will be less valuable over time and it will take more units to purchase the same product 10 years later).

Deflationary money on the other hand, gains value. The banksters these days just print money whenever they want to, increasing the rate of inflation......Deflation however, especially when it comes to crypto currency......there's a set amount that can ever be created. When demand increases and more people use it, value increases over time......because there aren't any jackasses just printing more of it like there's no tommorrow.

How is that different? Poor people can buy more with the little bit they do have if they can manage to hold onto it for awhile. It's not a perfect system, but it's a better chance for the little guy than an inflationary system....simply by the inherent nature of the currency.

[EthanJames]

The girl who started that thread is really annoying.

We should all just get along and help each other!
Why aren't we all just getting along and helping each other?
It's all so saaaad! You're all so small-minded for not helping each other!

Yuck.

[2Kool4Skewl]

I think you could make the argument that the central bankers' policy of printing money is actual causing deflation because as fast as they are printing money, they are causing an even faster collapse of the credit (lending) system leading to less market liquidity.  Remember in inflation everyone loses their shirts, but deflation mainly hurts those with limited capital.

[Knapo]

I think you could make the argument that the central bankers' policy of printing money is actual causing deflation because as fast as they are printing money, they are causing an even faster collapse of the credit (lending) system leading to less market liquidity.  Remember in inflation everyone loses their shirts, but deflation mainly hurts those with limited capital.

You fist sentence is correct. Not true however that in inflation hurts everyone. Inflation is a hidden tax that is hurting everyone with a fixed salary, 98% of the population, not the capitals.

[emperorofcoins]

I think you could make the argument that the central bankers' policy of printing money is actual causing deflation because as fast as they are printing money, they are causing an even faster collapse of the credit (lending) system leading to less market liquidity.  Remember in inflation everyone loses their shirts, but deflation mainly hurts those with limited capital.

You fist sentence is correct. Not true however that in inflation hurts everyone. Inflation is a hidden tax that is hurting everyone with a fixed salary, 98% of the population, not the capitals.

98% of the population has a fixed salary ? Where did you get that number ?

[Knapo]

I think you could make the argument that the central bankers' policy of printing money is actual causing deflation because as fast as they are printing money, they are causing an even faster collapse of the credit (lending) system leading to less market liquidity.  Remember in inflation everyone loses their shirts, but deflation mainly hurts those with limited capital.

You fist sentence is correct. Not true however that in inflation hurts everyone. Inflation is a hidden tax that is hurting everyone with a fixed salary, 98% of the population, not the capitals.

98% of the population has a fixed salary ? Where did you get that number ?

That's just a speculation. Whether is 90%, 95% or 85% or whatever other number, it's still the big majority and the concept doesn't change anyhow.

[safersecs]

Obviously the former is correct, inflation is a linear tax, i.e. currently like 2-3.5% hidden tax is imposed on any fiat capital in USD or EUR at least.
For people that don't get it yet, it works as follows:
a) people will vote for parties/persons who spend state money on THEIR personal desires.
for example, people would vote on entities which enforce a higher welfare or a higher health care budget, or really anything else people are politically interested in
b) thus, if you were elected and want to be elected again, you would want to SPEND as much money as you can, in order to convince as many people as possible that you did good for them
so we'll have a tendency to spend as much household assets as possible during the period between elections
c) ultimately, elected entities control mainstream economy and financial politics, most importantly central bank policy.
they will always try to print more money in order to spend it on various projects convincing people they did good for them without raising the taxes, while ultimately they just did scam the general public without vote.

basically, this is an undermining of democracy as the money policy can circumvent the need for tax agreement in order to spend more money
normally, as a state if you want to spend more money, you'll need to raise taxes and for that you'll need the agreement of the general public/partners. However, if you just print money you are essentially enforcing a tax on everyone which they CAN'T deny. You are imposing fees on people holding your currency to reach YOUR own goals. That is, you can scam people out of their earned money and essentially spend THEIR money for YOUR goals.

This if of course a great simplification, but I am currently at work and if people would want a debate about this I would go into more detail.

[zappadave]

Taxes were brought to raise money from the people, to pay of the debts incurred by governments.  The super rich buy off the governments and control the whole process.  They create money from thin air, and get interest back from the government for the debt they pass to governments and people.  Until people control money, the whole process will just make the super rich richer.
Decentralized money, controlled by nobody, with a decentralized market is the only way to break the strangle hold of the banking elite.
Then ditch representative democracy, where the politicians lie to get elected, and only represent the super rich, and we might have some real freedom.
Then maybe Nxt.

Dave

[2Kool4Skewl]

Obviously the former is correct, inflation is a linear tax, i.e. currently like 2-3.5% hidden tax is imposed on any fiat capital in USD or EUR at least.
For people that don't get it yet, it works as follows:
a) people will vote for parties/persons who spend state money on THEIR personal desires.
for example, people would vote on entities which enforce a higher welfare or a higher health care budget, or really anything else people are politically interested in
b) thus, if you were elected and want to be elected again, you would want to SPEND as much money as you can, in order to convince as many people as possible that you did good for them
so we'll have a tendency to spend as much household assets as possible during the period between elections
c) ultimately, elected entities control mainstream economy and financial politics, most importantly central bank policy.
they will always try to print more money in order to spend it on various projects convincing people they did good for them without raising the taxes, while ultimately they just did scam the general public without vote.

basically, this is an undermining of democracy as the money policy can circumvent the need for tax agreement in order to spend more money
normally, as a state if you want to spend more money, you'll need to raise taxes and for that you'll need the agreement of the general public/partners. However, if you just print money you are essentially enforcing a tax on everyone which they CAN'T deny. You are imposing fees on people holding your currency to reach YOUR own goals. That is, you can scam people out of their earned money and essentially spend THEIR money for YOUR goals.

This if of course a great simplification, but I am currently at work and if people would want a debate about this I would go into more detail.

Taxes were brought to raise money from the people, to pay of the debts incurred by governments.  The super rich buy off the governments and control the whole process.  They create money from thin air, and get interest back from the government for the debt they pass to governments and people.  Until people control money, the whole process will just make the super rich richer.
Decentralized money, controlled by nobody, with a decentralized market is the only way to break the strangle hold of the banking elite.
Then ditch representative democracy, where the politicians lie to get elected, and only represent the super rich, and we might have some real freedom.
Then maybe Nxt.

Dave

I couldn't have said it better myself.

One of the reasons Nxt is groundbreaking is because it gives the economy back to the people and re-establishes them as their own sovereigns over their destiny.  An economy is an expression of a political ideology.  Nxt is not just a cryptocurrency.  It is a movement.

[utopianfuture]

Obviously the former is correct, inflation is a linear tax, i.e. currently like 2-3.5% hidden tax is imposed on any fiat capital in USD or EUR at least.
For people that don't get it yet, it works as follows:
a) people will vote for parties/persons who spend state money on THEIR personal desires.
for example, people would vote on entities which enforce a higher welfare or a higher health care budget, or really anything else people are politically interested in
b) thus, if you were elected and want to be elected again, you would want to SPEND as much money as you can, in order to convince as many people as possible that you did good for them
so we'll have a tendency to spend as much household assets as possible during the period between elections
c) ultimately, elected entities control mainstream economy and financial politics, most importantly central bank policy.
they will always try to print more money in order to spend it on various projects convincing people they did good for them without raising the taxes, while ultimately they just did scam the general public without vote.

basically, this is an undermining of democracy as the money policy can circumvent the need for tax agreement in order to spend more money
normally, as a state if you want to spend more money, you'll need to raise taxes and for that you'll need the agreement of the general public/partners. However, if you just print money you are essentially enforcing a tax on everyone which they CAN'T deny. You are imposing fees on people holding your currency to reach YOUR own goals. That is, you can scam people out of their earned money and essentially spend THEIR money for YOUR goals.

This if of course a great simplification, but I am currently at work and if people would want a debate about this I would go into more detail.

Taxes were brought to raise money from the people, to pay of the debts incurred by governments.  The super rich buy off the governments and control the whole process.  They create money from thin air, and get interest back from the government for the debt they pass to governments and people.  Until people control money, the whole process will just make the super rich richer.
Decentralized money, controlled by nobody, with a decentralized market is the only way to break the strangle hold of the banking elite.
Then ditch representative democracy, where the politicians lie to get elected, and only represent the super rich, and we might have some real freedom.
Then maybe Nxt.

Dave

I couldn't have said it better myself.

One of the reasons Nxt is groundbreaking is because it gives the economy back to the people and re-establishes them as their own sovereigns over their destiny.  An economy is an expression of a political ideology.  Nxt is not just a cryptocurrency.  It is a movement.

I like it