A lot of zeros As bitcoin’s price passes ... - The Economist

To print... or not to print? The effects of lost money and effective death taxes.

So, in the perfect economy, all goods would be distributed to every person according to their needs, and all people would have access to resources. However, there is a choice gradient, especially for simple wants, and that is why money, pricing, and markets exist. There is no socialist replacement that encapsulates a weighting of extreme want, vs need. For example, consider the following choice of life for life.
Person aged 79. Has heart disease. Needs a new heart, will probably die in 3 years without a new heart. REALLY REALLY wants to live.
Person aged 17. Has heart disease. Needs a new heart, will die in 2 months without a new heart. Suffers from depression and is suicidal.
Now, who needs the heart more? They are both humans, and both of their lives are important. They *SHOULD* both be saved. But, without artificial hearts, we need to make a choice, and if they both had equal resources, then they could devote their resources towards what was meaningful to them. Now in a society that only cares about absolute life lived, it is a no brainer to sacrifice the old to save the young, despite the older person having more wealth, and caring more about life, and having less of a need for the transplant. But in our capitalist society, the call will be made to save the one who spends more money. And this is the tyranny of capitalism.
But what about the choice of a woman who wants to homeschool her child vs a man who wants to buy a new car? This is a different choice, and is a choice of wants. Again, markets currently make this choice. Circumstances are everything, and need vs want is really not clear cut. For example, what if the car is needed to provide resources for a family? Or what if the homeschooling needs to be done because the child's life is at risk? These complicate the difference between need and want and turn clear cut decisions into aggregate inputs of demand. Which comes down to markets, pricing, money... and a useful discussion about whether the printing of new money is beneficial or harmful to a society in terms of socialist goals of having everyone fed clothed, and well off.
There are two schools of thought in this. Keynesian and Austrian economics. The Keynesian economic system is the economic system that drives modern capitalism. Under Keynesian theory, the goal is to devalue money at a slow, steady rate. This devaluing of money makes holding money akin to playing with a hot potato. People are penalized for saving, and they are encouraged to take on debt and over leverage themselves to acquire material possessions. This drives the rampant materialism seen so often in capitalist countries, and drives the valuation of material wealth over human life. People are driven to consume, and thus consumer culture arises as a function of devaluing money. The end game of Keynesian economics can be seen in hyper inflation, where the prices of all goods soar above the ability of the people to buy, and wages do not rise to meet the needs of the people.
The alternative is Austrian economics. Under the Austrian economic system, no new money is printed. The money supply is set in stone. When money is lost, it is lost forever, and there is slightly less money circulating in the system. As a consequence, the prices of all goods fall slightly over time to accommodate the lost value, and the appreciation of the base currency. This means that the everyday individual has an effective constant rise to their wages and standard of living if their wage does not change. If you want a very deep dive into Austrian economics, check here: https://en.wikipedia.org/wiki/Austrian_School
Austrian economists tend to be anarchocapitalist in their opinions, and nowhere is this more readily seen than in the bitcoin sphere. However, the implications of a society where no money is printed is extreme. Firstly, minimum wage would never have to be increased. Instead, employers would be fighting tooth and nail to see the minimum wage decrease. Consider a real world example. In 2010, the price of 1 bitcoin was $31.00. Say that congress had ordered that the minimum wage was to be 1 bitcoin. That same value today is $ 11,352. Now, this is obviously extreme, but it illustrates a powerful trend that would empower the working class over time, and dis-empower employers. I wish I had a better example where there was less rampant speculation than bitcoin, but other examples do not exist. Bitcoin is the longest running monetary system in modern times that is backed by a finite resource. Fiat currencies have gone off the gold standard.
This of course does not solve the other fundamental problems of capitalism. But it is a step ahead of the fiat system that dominates the capitalist world, and I believe a system where money was not printed would empower the workers and everyday people of the world.
submitted by Ghostcarapace3 to socialism [link] [comments]

Dissecting the Parasitocracy

Instead of honest democracy or free-market meritocracy, we truly live under rule by parasites. (This term is not meant to be derogatory but to be apt. I suppose many, if not most of us, would opt to be one of the parasites, if given the choice.)
Trying to describe how the financial and political elites receive unearned wealth and power can get complicated very quickly. To find a simple but rigorous theory to cover most major features of the beast requires looking at it the right way.
By and large, how it works is that:
The elites use state power to prop up the values of money, debt, and other financial assets artificially, to benefit those who issue them, i.e. themselves. When some over-valued asset eventually must crash, the entire economy suffers the loss of jobs, business and savings.
 
Example: The Bank Account
Public illusion. A commercial-bank 'deposit' is as good as money. You will get all your money back, any time you want.
Reality. 'Deposits' are really loans to the bank which lends them to borrowers, some of whom may never pay them back. Another danger is that savers may ask for their money at any time, while loans by the bank tend to have longer-term maturities.
How to bridge myth and reality. An truly free-market system would drive banks to communicate expectations openly. A simple example could be having 'depositors' expect to lose money if the bank makes bad loans. The problem with such an honest system, of course, is that top politicians and bankers wouldn't benefit much, since people would likely put much less money in banks.
The confidence trick. The government props up the illusion, while it can. Classic tools over the centuries include allowing banks to collude by rescuing each other in a crisis, bailing banks out with public money, and providing deposit insurance. If this gives bankers the incentives to take too much risk, bankers redeem themselves by being a lender to the government. Since both sets of elites benefit, what problem is there? (In recent decades investment banks and money market funds have formed a shadow banking system which plays an equivalent role. While the last US commercial-bank bust happened in the 1980s' savings-and-loan crisis, the last shadow-bank variety occurred in 2007-8.)
Analysis. While credit is indeed crucial to economic growth, to use government power to prop up the values of loans to banks, and then to rely on bureaucrats and their rules to limit risk-taking by bankers is a distortion of the credit market. It is the driver of much human misery. Central planning, somehow, always benefits the few at the expense of the many, even if it claims to do just the opposite.
 
Example: Government Bonds
Public illusion. The 'full faith and credit' of the government stands behind the IOU it issues to you. Your IOU is as good as money.
Reality. Since much public debt is almost as trusted as money, incurring this debt is almost as good as printing money. Politicians thus have an incentive to maximize the issuance of debt to receive free political capital, even if this destabilizes their own system in the long run. Public debt all over the world goes only up. Even though powerful governments can keep their debt bubbles going for a century or more, those incentives mean that their IOUs will eventually lose value, one way or another.
How to bridge myth and reality. Even aside from the moral problems of 'money' creation and putting burden on people who can't yet vote, public debt should at least be allowed to sink or swim in the capital markets. If a government incurs too much debt, savers would be incentivized to punish it by demanding a higher yield, and politicians would in turn be incentivized to cut back borrowing.
The confidence trick. When savers get too wary of public debt, the central bank steps in to buy it with freshly printed money, thus propping up the value of these IOUs. This is done in the name of 'monetary policy,' either by buying public debt directly as 'open market' operations, or, more frequently, by supplying banks with cheap new money so they will buy it. Most of the time, savers can't fight city hall, and will thus tend to buy and hold IOUs, further limiting the downside risk of their values. This entire system thus amounts to a bubble.
Analysis. It doesn't matter how powerful a government is -- Public debt always crashes eventually. The dominant global empires of Spain, the Netherlands, and Britain were destroyed by this crash in their days. (In the case of Britain the relevant 'public debt' took the form of paper pound sterling that was officially an IOU for a fixed amount of gold.) No one believes US debt is really payable with anything close to the purchasing power savers and foreign central banks used to buy it, although by the time its value can no longer be propped up, most politicians and voters who have benefited from issuing it will have been gone.
 
Example: Money
Public illusion. Central banks issue and destroy currency to manage economic output for the benefit of the public. At least in the West, proper management has resulted in low and constant inflation that has justified the public's evident trust in currency's value.
Reality. The real job description of the central bank is to safeguard the state-bank alliance. It holds power over the most central asset, money, in order to discourage both politicians and bankers from issuing assets too fast and thus endangering the system. The goal is well-paced harvesting of the fruits of real work. Over the decades, prices only move in one direction: up.
How to bridge myth and reality. Unfortunately, there is no way to remove the incentives to abuse the issuance of money while the state or a banking cartel has any role in the issuance.
The confidence trick. The problem of holding up the public's trust in currency was solved in a simple fashion by the classical gold and silver standards in their day, while the authorities had enough precious metals to back their paper. Today, the central bank needs to keep the return on 'safe' assets (e.g. short-term Treasuries, insured deposits) above the return on non-state-issued assets, i.e. gold, silver and Bitcoin. (Recent books like 'Gold Wars' and 'The Gold Cartel' have come up with good evidence of central-bank suppression of precious metal prices by trading derivatives.) In this it seems to succeed most of the time, but fail spectacularly at other times. It also needs to keep the return on 'safe' assets below the return on risky assets like stocks, over the long term. The goal of both operations is to use state power to force savers to take risks and help prop up the bubble economy. (Ever wonder why financial crisis always seems to come back?) When you hear of 'tightening' or 'loosening' the money supply, this control is what's really going on. So, it's not that the public trusts currency; most feel they have no choice.
Analysis. It's not, as most mainstream economists claim, that state-controlled money is required for modern economic growth. The Italian Renaissance and Scottish 'free-banking' era were counter-examples. It's really the other way round. The real productivity of the modern world gives value to the financial assets issued by the elites, and thus help sustain their financial inflation, at least until the perverse incentives destabilizes the system anyway. In the Middle Ages, money was physical gold and silver -- when there was no wealth to extract, the state couldn't create its financial inflation.
 
Final Thoughts
A key feature of this system is that it doesn't matter if you understand it. You still must gamble, or risk your savings being eaten away by inflation. The gamble by the public as a whole is certain to end in loss, since the elites will always destabilize asset values to the point of collapse. The lose-lose proposition works the same way as literal highway robbery -- you can certainly hold on to your money; you just can't keep your life at the same time.
That said, there are times when the elites are likely to be forced to devalue their money, and with it all other conventional assets, against gold, silver and Bitcoin, in order to hold on to power. This makes it statistically profitable to hold non-state-issued assets at those times. (An analogy would be standing at the front of the line to redeem deposits for cash during a bank run, or to redeem pound sterling for gold at the Bank of England just before Britain was forced off the gold standard.) Necessarily, only a minority will profit from this bet, but its existence is a healthy incentive that pushes the elites to minimize financial inflation.
This devaluation is conceptually the same as 'banana republics' having to devalue their currency against the dollar because they've printed too much. The typical way to do this is to strongly deny any prospect of devaluation until the very moment, devalue as fast as possible (and devalue enough to keep their system stable for a while,) and deny any further devaluations in future. So, it's perhaps no accident that the price movements of gold, silver and Bitcoin have been long and gradual declines most of the time, punctuated by sharp rises over short periods, and rising overall over the long term.
The system is an 'open conspiracy.' Instead of secrecy, it relies on a combination of state power and ignorance by the public. The only sustainable path to achieving a healthy and just system is for the public to wake up. But the devaluation of its issued money against non-state monies shows that, in a subtle but profoundly real sense, the system is a paper tiger. Since the power of the modern imperial system depends necessarily on various alliances of self-interest as well as the perception of its support for classically liberal ideals, if enough people, and people in the right places, refuse to be intimidated, or expose its nature, the system must make concessions, and make the world perhaps a little better.
This possibility of piecewise progress exists in all corners of the system, at most times. Here, then, is where our hope must be for the future. It will be a long battle indeed, and we must be prepared for the entire duration.
submitted by BobK72 to conspiracy_commons [link] [comments]

I'm making a video targeting right-wingers - Please critique and give feedback ASAP before I commit to recording? "Axiomatic Warfare and the Fatal Flaws of Modern Fascism"

[Video Essay Script] - Links will be used in video as images and segments. https://docs.google.com/document/d/12OX9TTfLhgNEfdDaMWfsHYyAMzTx9G7bSwu_0Ke1Ksc/edit?usp=sharing

Introduction to Modern Fascism

“Repeat a lie often enough and it becomes the truth”- Nazi Propagandists, Joseph Goebbels.

Axioms are our base assumptions about the world. They act as filters for new information coming into our consciousness.
In classic philosophy, an axiom is a statement that is so evident or well-established, that it is accepted without controversy or question. As used in modern logic, an axiom is a premise or starting point for reasoning.
We use these axiomatic assumptions to build our internal models of the world around us. They allow us to compare new information we receive from the outside with our internal narratives, which helps us to decide whether to reject or accept that new information. They are, for want of a better world, your "common sense" beliefs.
So how do you go about changing a relatively normal person's core beliefs and base assumptions to the point of rejecting their fellow citizens as traitors, committing acts of murderous terrorist or vigilante violence like Fascist white supremacists running down protesters in acts of terror, ISIS beheadings or mass genocide?

Shock Treatment and Slow Repetition

When I was a child I was subjected to regular mental and physical abuse from my dad. I would also see my mother repeatedly beaten up and then flee to a women's refuge where I would stay with her.
Each time my mom left, whenever I visited my dad at weekends, he would constantly try to pressure and manipulate me into convincing my mom to get back together with him.
This never worked of course. But what it did do, is make me highly sensitive to manipulation techniques.
I was fascinated by people like the magician Derren Brown and the economist Naomi Klein - who both reveal the tricks of the trade used in the advertising and marketing industries to convince people.
One way of changing people into killing machines or obedient sheep is through a big shock to the system, like how electroshock therapy allows for a clean slate to rebuild peoples intern mental models.
Psychedelics are another way, having a similar effect in the brain. Encouraged by the alt right and alt-light influencers like Jordan Peterson and Rebel Wisdom as they try to “Red Pill” people (an expression taken from the film The Matrix as a metaphor for revealing revealing the truth about the world).
They use this shock and disorientation as a way to prepare a “blank-slate” in order to rebuild peoples internal axiomatic models with different core beliefs.
Remaking people by shocking them into obedience and gas-lighting them about their existing internal models, making them seem irrational, silly or outdated. Reducing them to a mental state of a child and then rebuilding them with a new ideology and worldview, known as “shock therapy”.
As Naomi Klein explains in The Shock Doctrine: The Rise of Disaster Capitalism, these techniques work on larger scales with use of trauma and shock to influence political outcomes has been used since at least Milton Friedman coined the term “Economic Shock Treatment”. He advised that politicians push through painful and unpopular policies all at once during a time of crisis, before people could regain their footing.
The technique is used in economic markets on the large scale, and also against individuals on a small scale with individuals too. Economics and politics is just human interaction on a larger scale, after all.
Regular repetition and gentle suggestions of ideas can also instil new axiomatic models and core beliefs into people's minds. As Derren Brown demonstrates how powerful subtly suggestions can be alone, without the need for hypnosis, shocks or drugs.
But used in combination, shock and repetition can shift people until they have moved their positions, perceptions and beliefs about the world, to a place they could never have imagined.
But luckily once you deconstruct the deception and understand how the trick works, the illusion falls apart.

Defining and Deconstructing Modern Fascism

Firstly, we must define Modern Fascism. Modern Fascism ticks every box of the traditional definitions in Umberto Eco’s essay Ur-Fascism, and not only does it fulfil every criteria, it reveals other motivational forces and has evolved to include new aspects, and has changed into something worse, while it’s main weakness remain the same - the fact that it is primarily motivated by weakness.
As General Franco said in a 1938 interview with Henri Massis: "Fascism presents, wherever it manifests itself, characteristics which are varied to the extent that countries and national temperaments vary. It is essentially a defensive reaction of the organism, a manifestation of the desire to live, of the desire not to die, which at certain times seizes a whole people. So each people reacts in its own way, according to its conception of life… What can it have in common with Hitlerism, which was, above all, a reaction against the state of things created by the defeat, and by the abdication and the despair that followed it?"
This quote perfectly illustrates the transient nature of the ideology, but also the core motivations of Fascism. It is an ideology based on the assumption of weakness which yearns for restoration of a past greatness or to get revenge and recognition. But the way that it manifests itself is different in each place it takes hold.
Therefore the aim of this isn’t to make the case that any particular party or country has embraced out-right fascism (plenty of other people have made that case already), the aim is to reveal the underlying motivations, highlight threats and weaknesses and analyse the less obvious negative effects of Modern Fascism.

History Doesn’t Repeat, But It Rhymes

A false equivalence that is often used is that Liberal Imperialism is just the same as Fascism. And while it is true that imperialists use fascist dictators to extract cheap labour and resources and also dominate smaller counties in a similar way to how fascist empires aspire to rule, the key difference is that the populations of those countries are not gripped by the same fear based delusions.
And therefore more Liberal democracies are better equipped to hold their imperial position of power long term because they are better able to assess risks and react accordingly, rather than over-react based on paranoia and competing egos under excessive pressure.
This false equivalence was also used in 1930’s Germany, because far-left Communists had been co opted and infiltrated by Fascists. They would repeat the mantra that “the Social Democrats were the real racists”.
Contrary to the assumptions of most people, Fascism, as an ideology and political system of government is very distinct to white supremacy. It does of course include white supremecists, but In fact includes many other groups who have been co-opted by Fascist propaganda, or who implicitly support and enable their agenda.
Examples of modern opposition which has been repeatedly infiltrated or just simply made up by Fascists include innumerable conspiracy theories, police groups like Blue Lives Matter, militant Black nationalists, the Boogaloo movement who call for a race war, the “Proud Boys” and even sometimes supposed Anarchists, far-left Communists and Left Accelerationists.

Motivations of Fascism

Fascism distilled down to its core reason for existing is the suppression of opposition who represent workers rights and economic justice. So they patently DON’T look after their own people. They con them into submission of the state by generating jingoistic fear of “the other” - whoever is convenient on that day to blame for their problems.
Fascism is is an economic shock doctrine upon the inhabitants of the country. We don't spread fascist propaganda in tip-pot dictators because we care about the indiginous people there. We install Fascist dictators in order to remove workers rights and open up access to their natural resources.
Artificial moral panics can be engineered and real disasters used to allow corrupt oligarchs and financial predators to consolidate power further by buying up small innovative businesses who don’t have the excess capital to survive the turmoil on their own without external support. Or as a way to eradicate public services by sabotaging them and building mistrust.
They are used to erode faith in public services and institutions by rich people who simply want to pay less tax and don’t see why they should subsidise other human beings who haven’t had the same luck as them. So a major motivation of fascism is to suppress the opposition left-wing party who represent workers rights and egalitarian freedoms.
Populists claim to be against free trade and to some extent they are, but whatever they do will fail because they are interfering with the markets, so they will retreat to the power of market domination. They use their threats of trade barriers as more just more shock treatment for markets, rather than protecting actual jobs or industries.
This is a trick that has been played by Neoliberals too. But while Neoliberals use fascism as a tool for opening markets to Imperialism, they differ from Libertarians, not only because they embrace guns and weed, but they are starting from different positions to achieve the same goal;
Neoliberals seek to remove already existing public services and workers rights that lift bargaining power. But Libertarians want to STOP the government from ever providing those services and investments into the poor or enshrining workers rights.

Modern Fascist Ideology has TWO Core Reasons to Exist; Fear and Freed.

I have been researching and analysing how economic systems differ, using a SWOT analysis (Strengths, Weaknesses, Opportunities and Threads). For each economic system I tried to be as neutral, fair and balanced as possible - which included Fascism.
I might seem strange that someone who is anti-Fascist would want to explore the strenghts and opportunities of Fascist ideologies, but in doing so it reveals the real weaknesses and threats which are too important for us to ignore.
So what exactly IS Fascism? Is it just an economic doctrine or a personal philosophy about the world? The answer is both.
The ideology has TWO core reasons to exist, and TWO distinct audiences types - with one based primarily on fear and the other greed, with each having a malignant and symbiotic relationship with each other.
Fear - Authoritarian/Conservative Fascists
Greed - Libertarian Fascists
There are very few people who actually buy into full Fascist ideology, most believe a watered down version of which resembles Conservatism or right-wing populism or accelerationism, and most of them genuinely believe they aren’t fascist, even though they are being constantly fed subtle suggestions fascist ideology or that align with their plans.
But the most ironic thing is that these groups are mostly being used by the second group of rich Libertarians globalist elites pulling a confidence trick on the host nation. Often posing “anti-establishment” conspiracists who actually uphold the establishment through misinformation. See: Russia Today and Youtube Bitcoin and Gold shills who subtly suggest fascist talking points.
With those rich Libertarians at the top more than happy for those below them, who they deem less worthy, living in even more delusional ideologies with fake enemies to fear, often resembling traditional Christian but values wrapped in modern conspiracies with added elements of “satanic panic”.
Modern Fascism has clearly inspired the modern day equivalents of Brownshirts and Blackshirts, self-styled vigilantes like QAnon, The Proud Boys and “The Boogaloo” - white nationalist violent extremists who want to accelerate towards a full-on race war.
It has also infiltrated numerous alternative groups, such as hyper-evangelical “end times” cults, alternative health scenes, internet conspiracy scenes like flat earth and occult magic.

Lockdown Conspiracies

A commonly missing hallmark of fascism that is present in history during the rise of fascism is a controlled opposition and explicit suppression of opposition. This distorts a healthy society and has unforeseen consequences and blowback.
Fantasies and political thought bubbles are self delusional custom realities resembling an episode of Black Mirror. They act as coping and escape mechanisms. Especially during the Covid 19 lock-down, these tendencies have gone into overdrive with massive events entering the real world featuring David Ike leading protesters alongside fascists as people ignore rising Fascism, climate change destruction and Covid deaths tolls.
Using disasters like Covid or irrational scare tactics such as the "Satanic Panic" style Fascist propaganda from QAnon, can shock people using their fear and disgust response, while making them distrust the news - allowing the government to evade valid criticism from experts while suggesting to people that government public services are inherently evil or Communist.
This type of propaganda is a Libertarians wet dream - making a population not only give up on tax funded public services, but actively fear them. An example is Trump trying to discredit and defund the US Postal Service and other public institutions and regulatory bodies.
Anti Semitism has been used throughout history by those in power to provoke an “us vs. them” mentality, leading to today's establishment still sanctioning and allowing Qanon on major media platforms, provoking and agitating terrorist attackers from the far-left and the far-right.
Those in power in fascist regimes allow and encourage mistrust in the mainstream media, while the long-tail niche political and interest groups keep people separated from each other, who each live in their own custom realities while the real elites continue to dominate and increase their power.
With each bubble framing realities based of identity, race, class, nationality, or even subculture special interests like alternative medicine and “gamer bro” culture, so that when they interact in real life or online, they are speaking past each other because they don’t even agree on the basic principles of how they view society.

The Fatal Flaws of Living in a Fantasy

While the main flaws and weaknesses of Fascism remain the same, they are in-fact exacerbated by this new hybrid model. It’s main weakness is the very fact that it is motivated by weaknesses, fear and greed - rather than true strength, self-confidence or heroic benevolent power, as their adherents like to believe.
A misconception of fascists themselves that it is based on strength, when it is actually based on weakness - even when the driving force is greed rather than fear. Libertarian fascists want to extract labour and materials at cheaper prices, while inflating their own asset values.
In other words; international financiers with little allegiance to any country. Ironically the very type of people who Conservative fascists claim to be opposed to.
Fascism claims to make society more successful, but it actually accelerates the destruction of the culture, country or people, rather than preserving and conserving it, because it betrays a fundamental weakness of insecurity. Competitors and rivals can easily see through the charade of and take advantage.
If anything does the exact opposite. Russian and China are clearly goading Western nations into becoming more divided and totalitarian, as they themselves benefit from becoming more Liberal and open and reap the competitive advantages that brings. See Kraut’s excellent video about Trump on China as an example.
Keynesian investment in the country and people, giving workers more rights, opportunities and a more bargaining power is what makes a country successful and innovative, rather than the faux Keynesian policy of giving kickbacks to corrupt officials for government contracts and widening inequality by supporting the already rich, rather than the ordinary people.

Who Benefits in This Memetic War?

Who is going to war with who? Who is winning? A modern adage is that tankies are just fascists because of their support of authoritarian proto-fascist leaders and regimes who often claim to be Communist.
But from my experience talking to actual fascists, they crave a more multi-polar world where other strong leaders rise up as competition and form alliances with dictators.
So to me, it looks like Fascists are the real Tankies; wishing our enemies be stronger and wanting to accelerate towards race war or civil war that weakens the society.
Not only did Donald Trump have knowledge of Russia allowing ISIS bounties on US troops and withhold that from the public while courting Putin, I have personally heard white supremacists backing extremists Islamists in Discord servers.
Trump jumped to the defense of the people who put a 17 year old with a gun against civil rights protesters and assumed the intent before saying that the outcome should be decided by the legal system.
They share common values and beliefs like Anti Semitism, accelerationist end-times fantasies, patriarchal traditional values and a fear of outside progressive cultures. In fact modern extremists white supremecist groups share recruitment and terrorist strategies and tactics with militant islamists.
You could argue that it was inflicted by Russian or Imperialist propagandists onto the German people in order to take control of larger areas of Europe after the destabilisation of war.
Hitler and Stalin came to a non agression truce called The Molotov–Ribbentrop Pact, which as was a secret non-aggression pact between Nazi Germany and the Soviet Union that enabled those two powers to partition Poland between them.
The pact, signed in Moscow on 23 August 1939 by German Foreign Minister Joachim von Ribbentrop and Soviet Foreign Minister Vyacheslav Molotov was officially known as the Treaty of Non-Aggression between Germany and the Union of Soviet Socialist Republics.
They divided Poland under the banner of fighting “Polish Fascism” nearly a century ago with both sides ultimately lying to their own people about spreading freedom while being authoritarian to their core and being able to blame “the other” as being the cause of all their problems.
But these days fascism seems to be a rogue meme that no longer serves any particular group. It is pathologically damaging to any society that it happens to grip.
Even the aforementioned Libertarians and accelerationists who think they are benefiting are only temporarily gaining by market price volatility. They ultimately lose through the blowback effect of the whirlpool they create.

Psychopathy, Alienation Nihilism and Insecurity

It is well established that Fascist dictators are driven by psychopathic characters and tendencies. They either don’t care about the truth, or disregard it if it’s not convenient to their narrative.
In totalitarian despotic societies facts are reversed. As George Orwell proclaimed throughout his writings; “War is peace. Freedom is slavery. Ignorance is strength.”.
Similar to how authoritarian Starlinist Communists harnessed people’s alienation and tricked them into thinking that it’s possible for the state to fully decommodify everything without having markets, money to account for things, domination or hierarchy or try to convince people that a revolution is just around the corner.
But of course, a council representative is still the head of an organisation, for all intents and purposes, because they wield executive power over others, even if the name has changed. Markets are emergent properties when groups of humans want or need a certain commodity when it becomes available.
But while both Communist and Fascist ideologies are based on lies that harness peoples alienation, fear and envy, Fascism is also especially to the weak. It is attractive to those who want to be strong again (or were never to begin with), or those who want to have a strong leader to help them.
Fascism betrays to others the inherent weakness. Like the insecure kid in school who lashes out - others around can see that it is because of their own insecurity which makes them appear even weaker. Fascism is a psychopathy driven by insecurity.
When people become so absorbed in an ideology there is a phenomena of people to self identify as an actual ideology? This produces a phenomena called Identity Protective Cognition, where people's self worth becomes attached to a belief system or ideology. So that when new information contradicts their worldview it is seen as an attack on the person themselves.
Therefore irrational, emotional quick fix thinking is the default when there is too much pressure and they feel attacked. They no longer use their slow effortful reflective thinking. (See Daniel Kahneman - Thinking, Fast and Slow)
This approach has parallels in evolutionary biology, in which a central issue is the ability to adapt to changing environments. Competency - over-competitiveness in management causes chaos which STOPS hierarchies of competence. (Insert video clips of Sapolsky on Chaos vs Reductionism etc. timestamps linked).
Fascists try to reduce variability in culture and outcomes - causes weakness of less adaptability - because as Sapolsky explains, the variability is not just noise in that type of system CAS (Complex Adaptive Systems) - the variability IS the system. It is fractal and scale free. The noise and variability is an intrinsic part of the system.
But the system doesn’t function properly when the agreed-upon parameters that individuals believe to be true aren’t universal enough to have any form of group coherence.
Birds and swarms of animals can produce amazing complex phenomena, which are greater than the sum of their individual parts. There is a “network effect” once a certain threshold and certain conditions and rules are met.
These rules can be very simple, like repulsion or attraction, or staying a certain distance apart while traveling in a similar direction, but collectively they create patterns that emerge with complexity and I dear say, a certain amount of beauty.
So what happens when millions of people are being brainwashed and misled by cults that are leaving them with a reduced ability to make decisions?
Giving them shit-for-brains just so that some rich people at the top can pay a few percentage less tax? That is the sign of a deeply sick system that cannot continue to function effectively. It is sick on so many levels.

Emergence, Complexity and Human Evolution - A Social-Biological Analysis

The problem with viewing the world through only one lens of analysis (or bucket of knowledge) is that you can fall into unnecessarily reductive thinking. (Sapolsky clips)
I describe myself as a philosophical anarchist. Which does NOT mean I want total chaos and disorder - it means I want the optimal solution to emerge - including the influences and experiences from the bottom-up.
I also think that a bottom-up (or anarchist) lens of analysis is necessary for society to run cohesively in an optimal state. If it is repressed it distorts the overall picture of reality for everyone - similar to a CEO that doesn’t listen to employees and workers on the ground.
I interpret as constantly holding authority to account - to justify its existence and reason for dominating others. I also believe it is every citizen's responsibility to hold authority to account. This would be necessary under ANY economic system or society.
Anarchists also believe in stigmenric, rhizomatic action to make the world better, organically, not from a top-down authority, which fascism seeks to instill on society.
Human beings are collectively parts of a bigger chaotic but stable system known as a CAS (Complex Adaptive System). CAS’s are chaotic systems that can reach periodic steady states of equilibrium.
As Professor Sapolsky explains, humans uniquely exist with a mixture of both communal and individualistic tendencies; known in the scientific world as Tournament vs. pair bonding.
All the evidence suggests that this tendency has greatly improved our success as a species. But those tendencies distorted too far one way or another lead to pathologies and the worst collective misdeeds and wars.
Because as Professor Sapolsky also explains in his brilliant lecture series (which I have condensed the pertinent parts of into a 4 part YouTube video) about CAS; the signals coming from the randomness is being suppressed or repressed, it interferes with the functioning of the system.
Pressure in the system makes the patterns more complex but at a certain point of increasing pressure in the complex system, it stops being linear and the doubling of patterns and periodicity totally stops. Order completely begins to break down because of the butterfly effect.
Fascist regimes fettishise order and rigidity but in a complex adaptive system, the noise IS the phenomena, not a byproduct to be discarded, ignored or repressed.
The majority of people on the right genuinely want to help society by bringing order, using top-down draconian measures if necessary. Whereas the left generally wants to help society by proactively building from the bottom up.
I think both of these approaches are necessary to be balanced properly for a healthy functioning society to emerge.
It seems our tendency to harness both traits and to focus intently on one or the other is our greatest collective strength, while also being our greatest weakness.
And similarly, on an individual level I believe our greatest strengths and weakness are the fact that our brains work efficiently by categorising information to filter out the unimportant bits that slow us down.
As the book by Daniel Kahneman - Thinking, Fast and Slow, brilliantly explains, slow deliberate, consideration thinking takes energy and time, so our brains developed filters which come out as biases. This is an inherent weakness of the human brain.
Now imagine the butterfly effect on the life of just one person who is influenced by the brainworms of QAnon cults or conspiracies which distorts their internal models of the world which they use to filter information about the world
The sad and shocking stories on forums like QanonCasualties show the devastating effects on their close friends, family and work life - amplified by their ever increasingly disconnected lives. (insert Flat earther clip - zoom in on idiot rolling head)
Now scale that up to the level of a whole of a society, a country, or the world? This is a collective madness to cope with and avoid the reality facing us as a species.
Only collective action with agreed basic facts to work from will do to avoid the total descent into actual chaos and destruction.

TLDR; Conclusion and Final Thoughts

In this essay I will have put forward the case for the following four key arguments being true and I have present supporting evidence to explain the logical reasoning for why our current definitions need updating and the threat levels reassed, from a non-hysterical but critical perspective. The overall claims I made are:
  1. Modern Fascism has taken over right-wing populism and bears all the hallmarks of early 20th Century Fascist ideologies.
  2. The ideology has two main reasons to exist, and two distinct audiences which both have a symbiotic, pathological relationship with each other.
  3. The main flaws and weaknesses of fascist ideology remain the same as ever - that fascism is motivated by irrational fears, greed and self deception.
  4. Modern Fascism has major unforeseen damaging consequences for individuals, governments, organisational dynamics, and society at large.
This reality is something I think a lot of fascists, ultra-nationalists and people who have been influenced by the propaganda know deep down on some level already - that they are avoiding the realities of pandemics and ecological harms of ignoring science and reality as it is.
They ignore it because fantasies are simpler to understand. And a narrative based on fear of the other is a simpler way to to process a complex world.
It is also attractive to the part of us that is drawn to conflict and drama - that hunger for something genuinely interesting to happen.
But I would argue from my experience that the beautiful complexity of life in all it’s shades of grey is much more interesting, fun and genuinely fulfilling to understand and engage in, even if it might be harder to deal with and even harder to explain.
I believe doing so is also vital for the very survival of our species - we can no longer afford to live in a fantasy, we need to collectively take responsibility for the world as it exists in reality.
Thank you to my two Patrons:
Carmen Jongepier
E.V. Roske
Original Script on Patreon
submitted by Upper-Range to BreadTube [link] [comments]

Why we need to think more carefully about what money is and how it works

Most of us have overlooked a fundamental problem that is currently causing an insurmountable obstacle to building a fairer and more sustainable world. We are very familiar with the thing in question, but its problematic nature has been hidden from us by a powerful illusion. We think the problem is capitalism, but capitalism is just the logical outcome of aggregate human decisions about how to manage money. The fundamental problem is money itself, or more specifically general purpose money and the international free market which allows you to sell a chunk of rainforest and use the money to buy a soft drink factory. (You can use the same sort of money to sell anything and buy anything, anywhere in the world, and until recently there was no alternative at all. Bitcoin is now an alternative, but is not quite what we are looking for.) The illusion is that because market prices are free, and nobody is forced into a transaction, those prices must be fair – that the exchange is equitable. The truth is that the way the general money globalised free market system works means that even though the prices are freely determined, there is still an unequal flow of natural resources from poor parts of the world to rich parts. This means the poor parts will always remain poor, and resources will continue to accumulate in the large, unsustainable cities in rich countries. In other words, unless we re-invent money, we cannot overturn capitalism, and that means we can't build a sustainable civilisation.
Why does this matter? What use is it realising that general purpose money is at the root of our problems when we know that the rich and powerful people who run this world will do everything in their power to prevent the existing world system being reformed? They aren't just going to agree to get rid of general purpose money and economic globalisation. It's like asking them to stop pursuing growth: they can't even imagine how to do it, and don't want to. So how does this offer us a way forwards?
Answer: because the two things in question – our monetary system and globalisation – look like being among the first casualties of collapse. Globalisation is already going into reverse (see brexit, Trump's protectionism) and our fiat money system is heading towards a debt/inflation implosion.
It looks highly likely that the scenario going forwards will be of increasing monetary and economic chaos. Fiat money systems have collapsed many times before, but never a global system of fiat currencies floating against each other. But regardless of how may fiat currencies collapse, or how high the price of gold goes in dollars, it is not clear what the system would be replaced with. Can we just go back to the gold standard? It is possible, but people will be desperately looking for other solutions, and the people in power might also be getting desperate.
So what could replace it? What is needed is a new sort of complementary money system which both
(a) addresses the immediate economic problems of people suffering from symptoms of economic and general collapse and
(b) provides a long-term framework around which a new sort of economy can emerge – an economy which is adapted to deglobalisation and degrowth.
I have been searching for answers to this question for some time, and have now found what I was looking for. It is explained in this recently published academic book, and this paper by the same professor of economic anthropology (Alf Hornborg). The answer is the creation of a new sort of money, but it is critically important exactly how this is done. Local currencies like the Bristol Pound do not challenge globalisation. What we need is a new sort of national currency. This currency would be issued as a UBI, but only usable to buy products and services originating within an adjustable radius. This would enable a new economy to emerge. It actually resists globalisation and promotes the growth of a new sort of economy where sustainability is built on local resources and local economic activity. It would also reverse the trend of population moving from poor rural areas and towns, to cities. It would revitalise the “left behind” parts of the western world, and put the brakes on the relentless flow of natural resources and “embodied cheap labour” from the poor parts of the world to the rich parts. It would set the whole system moving towards a more sustainable and fairer state.
This may sound unrealistic, but please give it a chance. I believe it offers a way forwards that can
(a) unite disparate factions trying to provoke systemic change, including eco-marxists, greens, posthumanists and anti-globalist supporters of “populist nationalism”. The only people who really stand to lose are the supporters of global big business and the 1%.
(b) offers a realistic alternative to a money system heading towards collapse, and to which currently no other realistic alternative is being proposed.
In other words, this offers a realistic way forwards not just right now but through much of the early stages of collapse. It is likely to become both politically and economically viable within the forseeable future. It does, though, require some elements of the left to abandon its globalist ideals. It will have to embrace a new sort of nationalism. And it will require various groups who are doing very well out of the current economic system to realise that it is doomed.
Here is an FAQ (from the paper).
What is a complementary currency? It is a form of money that can be used alongside regular money.
What is the fundamental goal of this proposal? The two most fundamental goals motivating this proposal are to insulate local human subsistence and livelihood from the vicissitudes of national and international economic cycles and financial speculation, and to provide tangible and attractive incentives for people to live and consume more sustainably. It also seeks to provide authorities with a means to employ social security expenditures to channel consumption in sustainable directions and encourage economic diversity and community resilience at the local level.
Why should the state administrate the reform? The nation is currently the most encompassing political entity capable of administrating an economic reform of this nature. Ideally it is also subservient to the democratic decisions of its population. The current proposal is envisaged as an option for European nations, but would seem equally advantageous for countries anywhere. If successfully implemented within a particular nation or set of nations, the system can be expected to be emulated by others. Whereas earlier experiments with alternative currencies have generally been local, bottom-up initiatives, a state-supported program offers advantages for long-term success. Rather than an informal, marginal movement connected to particular identities and transient social networks, persisting only as long as the enthusiasm of its founders, the complementary currency advocated here is formalized, efficacious, and lastingly fundamental to everyone's economy.
How is local use defined and monitored? The complementary currency (CC) can only be used to purchase goods and services that are produced within a given geographical radius of the point of purchase. This radius can be defined in terms of kilometers of transport, and it can vary between different nations and regions depending on circumstances. A fairly simple way of distinguishing local from non-local commodities would be to label them according to transport distance, much as is currently done regarding, for instance, organic production methods or "fair trade." Such transport certification would of course imply different labelling in different locales.
How is the complementary currency distributed? A practical way of organizing distribution would be to provide each citizen with a plastic card which is electronically charged each month with the sum of CC allotted to him or her.
Who are included in the category of citizens? A monthly CC is provided to all inhabitants of a nation who have received official residence permits.
What does basic income mean? Basic income is distributed without any requirements or duties to be fulfilled by the recipients. The sum of CC paid to an individual each month can be determined in relation to the currency's purchasing power and to the individual's age. The guiding principle should be that the sum provided to each adult should be sufficient to enable basic existence, and that the sum provided for each child should correspond to the additional household expenses it represents.
Why would people want to use their CC rather than regular money? As the sum of CC provided each month would correspond to purchases representing a claim on his or her regular budget, the basic income would liberate a part of each person's regular income and thus amount to substantial purchasing power, albeit restricted only to local purchases. The basic income in CC would reduce a person's dependence on wage labor and the risks currently associated with unemployment. It would encourage social cooperation and a vitalization of community.
Why would businesses want to accept payment in CC? Business entrepreneurs can be expected to respond rapidly to the radically expanded demand for local products and services, which would provide opportunities for a diverse range of local niche markets. Whether they receive all or only a part of their income in the form of CC, they can choose to use some of it to purchase tax-free local labor or other inputs, and to request to have some of it converted by the authorities to regular currency (see next point).
How is conversion of CC into regular currency organized? Entrepreneurs would be granted the right to convert some of their CC into regular currency at exchange rates set by the authorities.The exchange rate between the two currencies can be calibrated so as to compensate the authorities for loss of tax revenue and to balance the in- and outflows of CC to the state. The rate would thus amount to a tool for determining the extent to which the CC is recirculated in the local economy, or returned to the state. This is important in order to avoid inflation in the CC sector.
Would there be interest on sums of CC owned or loaned? There would be no interest accruing on a sum of CC, whether a surplus accumulating in an account or a loan extended.
How would saving and loaning of CC be organized? The formal granting of credit in CC would be managed by state authorities and follow the principle of full reserve banking, so that quantities of CC loaned would never exceed the quantities saved by the population as a whole.
Would the circulation of CC be subjected to taxation? No.
Why would authorities want to encourage tax-free local economies? Given the beneficial social and ecological consequences of this reform, it is assumed that nation states will represent the general interests of their electorates and thus promote it. Particularly in a situation with rising fiscal deficits, unemployment, health care, and social security expenditures, the proposed reform would alleviate financial pressure on governments. It would also reduce the rising costs of transport infrastructure, environmental protection, carbon offsetting, and climate change adaptation. In short, the rising costs and diminishing returns on current strategies for economic growth can be expected to encourage politicians to consider proposals such as this, as a means of avoiding escalating debt or even bankruptcy.
How would the state's expenditures in CC be financed? As suggested above, much of these expenditures would be balanced by the reduced costs for social security, health care, transport infrastructure, environmental protection, carbon offsetting, and climate change adaptation. As these savings may take time to materialize, however, states can choose to make a proportion of their social security payments (pensions, unemployment insurance, family allowance, etc.) in the form of CC. As between a third and half of some nations' annual budgets are committed to social security, this represents a significant option for financing the reform, requiring no corresponding tax levies.
What are the differences between this CC and the many experiments with local currencies? This proposal should not be confused with the notion, or with the practical operation, of local currencies, as it does not imply different currencies in different locales but one national,complementary currency for local use. Nor is it locally initiated and promoted in opposition to theregular currency, but centrally endorsed and administrated as an accepted complement to it. Most importantly, the alternative currency can only be used to purchase products and services originating from within a given geographical range, a restriction which is not implemented in experiments with Local Exchange Trading Systems (LETS). Finally, the CC is provided as a basic income to all residents of a nation, rather than only earned in proportion to the extent to which a person has made him- or herself useful in the local economy.
What would the ecological benefits be? The reform would radically reduce the demand for long-distance transport, the production of greenhouse gas emissions, consumption of energy and materials, and losses of foodstuffs through overproduction, storage, and transport. It would increase recycling of nutrients and packaging materials, which means decreasing leakage of nutrients and less garbage. It would reduce agricultural intensification, increase biodiversity, and decrease ecological degradation and vulnerability.
What would the societal benefits be? The reform would increase local cooperation, decrease social marginalization and addiction problems, provide more physical exercise, improve psycho-social and physical health, and increase food security and general community resilience. It would decrease the number of traffic accidents, provide fresher and healthier food with less preservatives, and improved contact between producers and consumers.
What would the long-term consequences be for the economy? The reform would no doubt generate radical transformations of the economy, as is precisely the intention. There would be a significant shift of dominance from transnational corporations founded on financial speculation and trade in industrially produced foodstuffs, fuels, and other internationally transported goods to locally diverse producers and services geared to sustainable livelihoods. This would be a democratic consequence of consumer power, rather than of legislation. Through a relatively simple transformation of the conditions for market rationality, governments can encourage new and more sustainable patterns of consumer behavior. In contrast to much of the drastic and often traumatic economic change of the past two centuries, these changes would be democratic and sustainable and would improve local and national resilience.
Why should society want to encourage people to refrain from formal employment? It is increasingly recognized that full or high employment cannot be a goal in itself, particularly if it implies escalating environmental degradation and energy and material throughput. Well-founded calls are thus currently made for degrowth, i.e. a reduction in the rate of production of goods and services that are conventionally quantified by economists as constitutive of GDP. Whether formal unemployment is the result of financial decline, technological development, or intentional policy for sustainability, no modern nation can be expected to leave its citizens economically unsupported. To subsist on basic income is undoubtedly more edifying than receiving unemployment insurance; the CC system encourages useful community cooperation and creative activities rather than destructive behavior that may damage a person's health.
Why should people receive an income without working? As observed above, modern nations will provide for their citizens whether they are formally employed or not. The incentive to find employment should ideally not be propelled only by economic imperatives, but more by the desire to maintain a given identity and to contribute creatively to society. Personal liberty would be enhanced by a reform which makes it possible for people to choose to spend (some of) their time on creative activities that are not remunerated on the formal market, and to accept the tradeoff implied by a somewhat lower economic standard. People can also be expected to devote a greater proportion of their time to community cooperation, earning additional CC, which means that they will contribute more to society – and experience less marginalization – than the currently unemployed.
Would savings in CC be inheritable? No.
How would transport distances of products and services be controlled? It is reasonable to expect the authorities to establish a special agency for monitoring and controlling transport distances. It seems unlikely that entrepreneurs would attempt to cheat the system by presenting distantly produced goods as locally produced, as we can expect income in regular currency generally to be preferable to income in CC. Such attempts would also entail transport costs which should make the cargo less competitive in relation to genuinely local produce, suggesting that the logic of local market mechanisms would by and large obviate the problem.
How would differences in local conditions (such as climate, soils, and urbanism) be dealt with?It is unavoidable that there would be significant variation between different locales in terms of the conditions for producing different kinds of goods. This means that relative local prices in CC for agiven product can be expected to vary from place to place. This may in turn mean that consumption patterns will vary somewhat between locales, which is predictable and not necessarily a problem. Generally speaking, a localization of resource flows can be expected to result in a more diverse pattern of calibration to local resource endowments, as in premodern contexts. The proposed system allows for considerable flexibility in terms of the geographical definition of what is categorized as local, depending on such conditions. In a fertile agricultural region, the radius for local produce may be defined, for instance, as 20 km, whereas in a less fertile or urban area, it may be 50 km. People living in urban centers are faced with a particular challenge. The reform would encourage an increased production of foodstuffs within and in the vicinity of urban areas, which in the long run may also affect urban planning. People might also choose to move to the countryside, where the range of subsistence goods that can be purchased with CC will tend to be greater. In the long run, the reform can be expected to encourage a better fit between the distribution of resources (such as agricultural land) and demography. This is fully in line with the intention of reducing long-distance transports of necessities.
What would the consequences be if people converted resources from one currency sphere into products or services sold in another? It seems unfeasible to monitor and regulate the use of distant imports (such as machinery and fuels) in producing produce for local markets, but as production for local markets is remunerated in CC, this should constitute a disincentive to invest regular money in such production processes. Production for local consumption can thus be expected to rely mostly – and increasingly – on local labor and other resource inputs.

submitted by anthropoz to sustainability [link] [comments]

A realistic way forwards (long, but I believe important)

Most of us have overlooked a fundamental problem that is currently causing an insurmountable obstacle to building a fairer and more sustainable world. We are very familiar with the thing in question, but its problematic nature has been hidden from us by a powerful illusion. We think the problem is capitalism, but capitalism is just the logical outcome of aggregate human decisions about how to manage money. The fundamental problem is money itself, or more specifically general purpose money and the international free market which allows you to sell a chunk of rainforest and use the money to buy a soft drink factory. (You can use the same sort of money to sell anything and buy anything, anywhere in the world, and until recently there was no alternative at all. Bitcoin is now an alternative, but is not quite what we are looking for.) The illusion is that because market prices are free, and nobody is forced into a transaction, those prices must be fair – that the exchange is equitable. The truth is that the way the general money globalised free market system works means that even though the prices are freely determined, there is still an unequal flow of natural resources from poor parts of the world to rich parts. This means the poor parts will always remain poor, and resources will continue to accumulate in the large, unsustainable cities in rich countries. In other words, unless we re-invent money, we cannot overturn capitalism, and that means we can't build a sustainable civilisation.
Why does this matter? What use is it realising that general purpose money is at the root of our problems when we know that the rich and powerful people who run this world will do everything in their power to prevent the existing world system being reformed? They aren't just going to agree to get rid of general purpose money and economic globalisation. It's like asking them to stop pursuing growth: they can't even imagine how to do it, and don't want to. So how does this offer us a way forwards?
Answer: because the two things in question – our monetary system and globalisation – look like being among the first casualties of collapse. Globalisation is already going into reverse (see brexit, Trump's protectionism) and our fiat money system is heading towards a debt/inflation implosion.
It looks highly likely that the scenario going forwards will be of increasing monetary and economic chaos. Fiat money systems have collapsed many times before, but never a global system of fiat currencies floating against each other. But regardless of how may fiat currencies collapse, or how high the price of gold goes in dollars, it is not clear what the system would be replaced with. Can we just go back to the gold standard? It is possible, but people will be desperately looking for other solutions, and the people in power might also be getting desperate.
So what could replace it? What is needed is a new sort of complementary money system which both
(a) addresses the immediate economic problems of people suffering from symptoms of economic and general collapse and
(b) provides a long-term framework around which a new sort of economy can emerge – an economy which is adapted to deglobalisation and degrowth.
I have been searching for answers to this question for some time, and have now found what I was looking for. It is explained in this recently published academic book, and this paper by the same professor of economic anthropology (Alf Hornborg). The answer is the creation of a new sort of money, but it is critically important exactly how this is done. Local currencies like the Bristol Pound do not challenge globalisation. What we need is a new sort of national currency. This currency would be issued as a UBI, but only usable to buy products and services originating within an adjustable radius. This would enable a new economy to emerge. It actually resists globalisation and promotes the growth of a new sort of economy where sustainability is built on local resources and local economic activity. It would also reverse the trend of population moving from poor rural areas and towns, to cities. It would revitalise the “left behind” parts of the western world, and put the brakes on the relentless flow of natural resources and “embodied cheap labour” from the poor parts of the world to the rich parts. It would set the whole system moving towards a more sustainable and fairer state.
This may sound unrealistic, but please give it a chance. I believe it offers a way forwards that can
(a) unite disparate factions trying to provoke systemic change, including eco-marxists, greens, posthumanists and anti-globalist supporters of “populist nationalism”, as well as large numbers of confused and worried "ordinary" people. The only people who really stand to lose are the supporters of global big business and the 1%.
(b) offers a realistic alternative to a money system heading towards collapse, and to which currently no other realistic alternative is being proposed.
In other words, this offers a realistic way forwards not just right now but through much of the early stages of collapse. It is likely to become both politically and economically viable within the forseeable future. It does, though, require some elements of the left to abandon its globalist ideals. It will have to embrace a new sort of nationalism. And it will require various groups who are doing very well out of the current economic system to realise that it is doomed.
Here is an FAQ (from the paper).
What is a complementary currency? It is a form of money that can be used alongside regular money.
What is the fundamental goal of this proposal? The two most fundamental goals motivating this proposal are to insulate local human subsistence and livelihood from the vicissitudes of national and international economic cycles and financial speculation, and to provide tangible and attractive incentives for people to live and consume more sustainably. It also seeks to provide authorities with a means to employ social security expenditures to channel consumption in sustainable directions and encourage economic diversity and community resilience at the local level.
Why should the state administrate the reform? The nation is currently the most encompassing political entity capable of administrating an economic reform of this nature. Ideally it is also subservient to the democratic decisions of its population. The current proposal is envisaged as an option for European nations, but would seem equally advantageous for countries anywhere. If successfully implemented within a particular nation or set of nations, the system can be expected to be emulated by others. Whereas earlier experiments with alternative currencies have generally been local, bottom-up initiatives, a state-supported program offers advantages for long-term success. Rather than an informal, marginal movement connected to particular identities and transient social networks, persisting only as long as the enthusiasm of its founders, the complementary currency advocated here is formalized, efficacious, and lastingly fundamental to everyone's economy.
How is local use defined and monitored? The complementary currency (CC) can only be used to purchase goods and services that are produced within a given geographical radius of the point of purchase. This radius can be defined in terms of kilometers of transport, and it can vary between different nations and regions depending on circumstances. A fairly simple way of distinguishing local from non-local commodities would be to label them according to transport distance, much as is currently done regarding, for instance, organic production methods or "fair trade." Such transport certification would of course imply different labelling in different locales.
How is the complementary currency distributed? A practical way of organizing distribution would be to provide each citizen with a plastic card which is electronically charged each month with the sum of CC allotted to him or her.
Who are included in the category of citizens? A monthly CC is provided to all inhabitants of a nation who have received official residence permits.
What does basic income mean? Basic income is distributed without any requirements or duties to be fulfilled by the recipients. The sum of CC paid to an individual each month can be determined in relation to the currency's purchasing power and to the individual's age. The guiding principle should be that the sum provided to each adult should be sufficient to enable basic existence, and that the sum provided for each child should correspond to the additional household expenses it represents.
Why would people want to use their CC rather than regular money? As the sum of CC provided each month would correspond to purchases representing a claim on his or her regular budget, the basic income would liberate a part of each person's regular income and thus amount to substantial purchasing power, albeit restricted only to local purchases. The basic income in CC would reduce a person's dependence on wage labor and the risks currently associated with unemployment. It would encourage social cooperation and a vitalization of community.
Why would businesses want to accept payment in CC? Business entrepreneurs can be expected to respond rapidly to the radically expanded demand for local products and services, which would provide opportunities for a diverse range of local niche markets. Whether they receive all or only a part of their income in the form of CC, they can choose to use some of it to purchase tax-free local labor or other inputs, and to request to have some of it converted by the authorities to regular currency (see next point).
How is conversion of CC into regular currency organized? Entrepreneurs would be granted the right to convert some of their CC into regular currency at exchange rates set by the authorities.The exchange rate between the two currencies can be calibrated so as to compensate the authorities for loss of tax revenue and to balance the in- and outflows of CC to the state. The rate would thus amount to a tool for determining the extent to which the CC is recirculated in the local economy, or returned to the state. This is important in order to avoid inflation in the CC sector.
Would there be interest on sums of CC owned or loaned? There would be no interest accruing on a sum of CC, whether a surplus accumulating in an account or a loan extended.
How would saving and loaning of CC be organized? The formal granting of credit in CC would be managed by state authorities and follow the principle of full reserve banking, so that quantities of CC loaned would never exceed the quantities saved by the population as a whole.
Would the circulation of CC be subjected to taxation? No.
Why would authorities want to encourage tax-free local economies? Given the beneficial social and ecological consequences of this reform, it is assumed that nation states will represent the general interests of their electorates and thus promote it. Particularly in a situation with rising fiscal deficits, unemployment, health care, and social security expenditures, the proposed reform would alleviate financial pressure on governments. It would also reduce the rising costs of transport infrastructure, environmental protection, carbon offsetting, and climate change adaptation. In short, the rising costs and diminishing returns on current strategies for economic growth can be expected to encourage politicians to consider proposals such as this, as a means of avoiding escalating debt or even bankruptcy.
How would the state's expenditures in CC be financed? As suggested above, much of these expenditures would be balanced by the reduced costs for social security, health care, transport infrastructure, environmental protection, carbon offsetting, and climate change adaptation. As these savings may take time to materialize, however, states can choose to make a proportion of their social security payments (pensions, unemployment insurance, family allowance, etc.) in the form of CC. As between a third and half of some nations' annual budgets are committed to social security, this represents a significant option for financing the reform, requiring no corresponding tax levies.
What are the differences between this CC and the many experiments with local currencies? This proposal should not be confused with the notion, or with the practical operation, of local currencies, as it does not imply different currencies in different locales but one national,complementary currency for local use. Nor is it locally initiated and promoted in opposition to theregular currency, but centrally endorsed and administrated as an accepted complement to it. Most importantly, the alternative currency can only be used to purchase products and services originating from within a given geographical range, a restriction which is not implemented in experiments with Local Exchange Trading Systems (LETS). Finally, the CC is provided as a basic income to all residents of a nation, rather than only earned in proportion to the extent to which a person has made him- or herself useful in the local economy.
What would the ecological benefits be? The reform would radically reduce the demand for long-distance transport, the production of greenhouse gas emissions, consumption of energy and materials, and losses of foodstuffs through overproduction, storage, and transport. It would increase recycling of nutrients and packaging materials, which means decreasing leakage of nutrients and less garbage. It would reduce agricultural intensification, increase biodiversity, and decrease ecological degradation and vulnerability.
What would the societal benefits be? The reform would increase local cooperation, decrease social marginalization and addiction problems, provide more physical exercise, improve psycho-social and physical health, and increase food security and general community resilience. It would decrease the number of traffic accidents, provide fresher and healthier food with less preservatives, and improved contact between producers and consumers.
What would the long-term consequences be for the economy? The reform would no doubt generate radical transformations of the economy, as is precisely the intention. There would be a significant shift of dominance from transnational corporations founded on financial speculation and trade in industrially produced foodstuffs, fuels, and other internationally transported goods to locally diverse producers and services geared to sustainable livelihoods. This would be a democratic consequence of consumer power, rather than of legislation. Through a relatively simple transformation of the conditions for market rationality, governments can encourage new and more sustainable patterns of consumer behavior. In contrast to much of the drastic and often traumatic economic change of the past two centuries, these changes would be democratic and sustainable and would improve local and national resilience.
Why should society want to encourage people to refrain from formal employment? It is increasingly recognized that full or high employment cannot be a goal in itself, particularly if it implies escalating environmental degradation and energy and material throughput. Well-founded calls are thus currently made for degrowth, i.e. a reduction in the rate of production of goods and services that are conventionally quantified by economists as constitutive of GDP. Whether formal unemployment is the result of financial decline, technological development, or intentional policy for sustainability, no modern nation can be expected to leave its citizens economically unsupported. To subsist on basic income is undoubtedly more edifying than receiving unemployment insurance; the CC system encourages useful community cooperation and creative activities rather than destructive behavior that may damage a person's health.
Why should people receive an income without working? As observed above, modern nations will provide for their citizens whether they are formally employed or not. The incentive to find employment should ideally not be propelled only by economic imperatives, but more by the desire to maintain a given identity and to contribute creatively to society. Personal liberty would be enhanced by a reform which makes it possible for people to choose to spend (some of) their time on creative activities that are not remunerated on the formal market, and to accept the tradeoff implied by a somewhat lower economic standard. People can also be expected to devote a greater proportion of their time to community cooperation, earning additional CC, which means that they will contribute more to society – and experience less marginalization – than the currently unemployed.
Would savings in CC be inheritable? No.
How would transport distances of products and services be controlled? It is reasonable to expect the authorities to establish a special agency for monitoring and controlling transport distances. It seems unlikely that entrepreneurs would attempt to cheat the system by presenting distantly produced goods as locally produced, as we can expect income in regular currency generally to be preferable to income in CC. Such attempts would also entail transport costs which should make the cargo less competitive in relation to genuinely local produce, suggesting that the logic of local market mechanisms would by and large obviate the problem.
How would differences in local conditions (such as climate, soils, and urbanism) be dealt with? It is unavoidable that there would be significant variation between different locales in terms of the conditions for producing different kinds of goods. This means that relative local prices in CC for agiven product can be expected to vary from place to place. This may in turn mean that consumption patterns will vary somewhat between locales, which is predictable and not necessarily a problem. Generally speaking, a localization of resource flows can be expected to result in a more diverse pattern of calibration to local resource endowments, as in premodern contexts. The proposed system allows for considerable flexibility in terms of the geographical definition of what is categorized as local, depending on such conditions. In a fertile agricultural region, the radius for local produce may be defined, for instance, as 20 km, whereas in a less fertile or urban area, it may be 50 km. People living in urban centers are faced with a particular challenge. The reform would encourage an increased production of foodstuffs within and in the vicinity of urban areas, which in the long run may also affect urban planning. People might also choose to move to the countryside, where the range of subsistence goods that can be purchased with CC will tend to be greater. In the long run, the reform can be expected to encourage a better fit between the distribution of resources (such as agricultural land) and demography. This is fully in line with the intention of reducing long-distance transports of necessities.
What would the consequences be if people converted resources from one currency sphere into products or services sold in another? It seems unfeasible to monitor and regulate the use of distant imports (such as machinery and fuels) in producing produce for local markets, but as production for local markets is remunerated in CC, this should constitute a disincentive to invest regular money in such production processes. Production for local consumption can thus be expected to rely mostly – and increasingly – on local labor and other resource inputs.
submitted by anthropoz to ExtinctionRebellion [link] [comments]

The Next Crypto Wave: The Rise of Stablecoins and its Entry to the U.S. Dollar Market

The Next Crypto Wave: The Rise of Stablecoins and its Entry to the U.S. Dollar Market

Author: Christian Hsieh, CEO of Tokenomy
This paper examines some explanations for the continual global market demand for the U.S. dollar, the rise of stablecoins, and the utility and opportunities that crypto dollars can offer to both the cryptocurrency and traditional markets.
The U.S. dollar, dominant in world trade since the establishment of the 1944 Bretton Woods System, is unequivocally the world’s most demanded reserve currency. Today, more than 61% of foreign bank reserves and nearly 40% of the entire world’s debt is denominated in U.S. dollars1.
However, there is a massive supply and demand imbalance in the U.S. dollar market. On the supply side, central banks throughout the world have implemented more than a decade-long accommodative monetary policy since the 2008 global financial crisis. The COVID-19 pandemic further exacerbated the need for central banks to provide necessary liquidity and keep staggering economies moving. While the Federal Reserve leads the effort of “money printing” and stimulus programs, the current money supply still cannot meet the constant high demand for the U.S. dollar2. Let us review some of the reasons for this constant dollar demand from a few economic fundamentals.

Demand for U.S. Dollars

Firstly, most of the world’s trade is denominated in U.S. dollars. Chief Economist of the IMF, Gita Gopinath, has compiled data reflecting that the U.S. dollar’s share of invoicing was 4.7 times larger than America’s share of the value of imports, and 3.1 times its share of world exports3. The U.S. dollar is the dominant “invoicing currency” in most developing countries4.

https://preview.redd.it/d4xalwdyz8p51.png?width=535&format=png&auto=webp&s=9f0556c6aa6b29016c9b135f3279e8337dfee2a6

https://preview.redd.it/wucg40kzz8p51.png?width=653&format=png&auto=webp&s=71257fec29b43e0fc0df1bf04363717e3b52478f
This U.S. dollar preference also directly impacts the world’s debt. According to the Bank of International Settlements, there is over $67 trillion in U.S. dollar denominated debt globally, and borrowing outside of the U.S. accounted for $12.5 trillion in Q1 20205. There is an immense demand for U.S. dollars every year just to service these dollar debts. The annual U.S. dollar buying demand is easily over $1 trillion assuming the borrowing cost is at 1.5% (1 year LIBOR + 1%) per year, a conservative estimate.

https://preview.redd.it/6956j6f109p51.png?width=487&format=png&auto=webp&s=ccea257a4e9524c11df25737cac961308b542b69
Secondly, since the U.S. has a much stronger economy compared to its global peers, a higher return on investments draws U.S. dollar demand from everywhere in the world, to invest in companies both in the public and private markets. The U.S. hosts the largest stock markets in the world with more than $33 trillion in public market capitalization (combined both NYSE and NASDAQ)6. For the private market, North America’s total share is well over 60% of the $6.5 trillion global assets under management across private equity, real assets, and private debt investments7. The demand for higher quality investments extends to the fixed income market as well. As countries like Japan and Switzerland currently have negative-yielding interest rates8, fixed income investors’ quest for yield in the developed economies leads them back to the U.S. debt market. As of July 2020, there are $15 trillion worth of negative-yielding debt securities globally (see chart). In comparison, the positive, low-yielding U.S. debt remains a sound fixed income strategy for conservative investors in uncertain market conditions.

Source: Bloomberg
Last, but not least, there are many developing economies experiencing failing monetary policies, where hyperinflation has become a real national disaster. A classic example is Venezuela, where the currency Bolivar became practically worthless as the inflation rate skyrocketed to 10,000,000% in 20199. The recent Beirut port explosion in Lebanon caused a sudden economic meltdown and compounded its already troubled financial market, where inflation has soared to over 112% year on year10. For citizens living in unstable regions such as these, the only reliable store of value is the U.S. dollar. According to the Chainalysis 2020 Geography of Cryptocurrency Report, Venezuela has become one of the most active cryptocurrency trading countries11. The demand for cryptocurrency surges as a flight to safety mentality drives Venezuelans to acquire U.S. dollars to preserve savings that they might otherwise lose. The growth for cryptocurrency activities in those regions is fueled by these desperate citizens using cryptocurrencies as rails to access the U.S. dollar, on top of acquiring actual Bitcoin or other underlying crypto assets.

The Rise of Crypto Dollars

Due to the highly volatile nature of cryptocurrencies, USD stablecoin, a crypto-powered blockchain token that pegs its value to the U.S. dollar, was introduced to provide stable dollar exposure in the crypto trading sphere. Tether is the first of its kind. Issued in 2014 on the bitcoin blockchain (Omni layer protocol), under the token symbol USDT, it attempts to provide crypto traders with a stable settlement currency while they trade in and out of various crypto assets. The reason behind the stablecoin creation was to address the inefficient and burdensome aspects of having to move fiat U.S. dollars between the legacy banking system and crypto exchanges. Because one USDT is theoretically backed by one U.S. dollar, traders can use USDT to trade and settle to fiat dollars. It was not until 2017 that the majority of traders seemed to realize Tether’s intended utility and started using it widely. As of April 2019, USDT trading volume started exceeding the trading volume of bitcoina12, and it now dominates the crypto trading sphere with over $50 billion average daily trading volume13.

https://preview.redd.it/3vq7v1jg09p51.png?width=700&format=png&auto=webp&s=46f11b5f5245a8c335ccc60432873e9bad2eb1e1
An interesting aspect of USDT is that although the claimed 1:1 backing with U.S. dollar collateral is in question, and the Tether company is in reality running fractional reserves through a loose offshore corporate structure, Tether’s trading volume and adoption continues to grow rapidly14. Perhaps in comparison to fiat U.S. dollars, which is not really backed by anything, Tether still has cash equivalents in reserves and crypto traders favor its liquidity and convenience over its lack of legitimacy. For those who are concerned about Tether’s solvency, they can now purchase credit default swaps for downside protection15. On the other hand, USDC, the more compliant contender, takes a distant second spot with total coin circulation of $1.8 billion, versus USDT at $14.5 billion (at the time of publication). It is still too early to tell who is the ultimate leader in the stablecoin arena, as more and more stablecoins are launching to offer various functions and supporting mechanisms. There are three main categories of stablecoin: fiat-backed, crypto-collateralized, and non-collateralized algorithm based stablecoins. Most of these are still at an experimental phase, and readers can learn more about them here. With the continuous innovation of stablecoin development, the utility stablecoins provide in the overall crypto market will become more apparent.

Institutional Developments

In addition to trade settlement, stablecoins can be applied in many other areas. Cross-border payments and remittances is an inefficient market that desperately needs innovation. In 2020, the average cost of sending money across the world is around 7%16, and it takes days to settle. The World Bank aims to reduce remittance fees to 3% by 2030. With the implementation of blockchain technology, this cost could be further reduced close to zero.
J.P. Morgan, the largest bank in the U.S., has created an Interbank Information Network (IIN) with 416 global Institutions to transform the speed of payment flows through its own JPM Coin, another type of crypto dollar17. Although people argue that JPM Coin is not considered a cryptocurrency as it cannot trade openly on a public blockchain, it is by far the largest scale experiment with all the institutional participants trading within the “permissioned” blockchain. It might be more accurate to refer to it as the use of distributed ledger technology (DLT) instead of “blockchain” in this context. Nevertheless, we should keep in mind that as J.P. Morgan currently moves $6 trillion U.S. dollars per day18, the scale of this experiment would create a considerable impact in the international payment and remittance market if it were successful. Potentially the day will come when regulated crypto exchanges become participants of IIN, and the link between public and private crypto assets can be instantly connected, unlocking greater possibilities in blockchain applications.
Many central banks are also in talks about developing their own central bank digital currency (CBDC). Although this idea was not new, the discussion was brought to the forefront due to Facebook’s aggressive Libra project announcement in June 2019 and the public attention that followed. As of July 2020, at least 36 central banks have published some sort of CBDC framework. While each nation has a slightly different motivation behind its currency digitization initiative, ranging from payment safety, transaction efficiency, easy monetary implementation, or financial inclusion, these central banks are committed to deploying a new digital payment infrastructure. When it comes to the technical architectures, research from BIS indicates that most of the current proofs-of-concept tend to be based upon distributed ledger technology (permissioned blockchain)19.

https://preview.redd.it/lgb1f2rw19p51.png?width=700&format=png&auto=webp&s=040bb0deed0499df6bf08a072fd7c4a442a826a0
These institutional experiments are laying an essential foundation for an improved global payment infrastructure, where instant and frictionless cross-border settlements can take place with minimal costs. Of course, the interoperability of private DLT tokens and public blockchain stablecoins has yet to be explored, but the innovation with both public and private blockchain efforts could eventually merge. This was highlighted recently by the Governor of the Bank of England who stated that “stablecoins and CBDC could sit alongside each other20”. One thing for certain is that crypto dollars (or other fiat-linked digital currencies) are going to play a significant role in our future economy.

Future Opportunities

There is never a dull moment in the crypto sector. The industry narratives constantly shift as innovation continues to evolve. Twelve years since its inception, Bitcoin has evolved from an abstract subject to a familiar concept. Its role as a secured, scarce, decentralized digital store of value has continued to gain acceptance, and it is well on its way to becoming an investable asset class as a portfolio hedge against asset price inflation and fiat currency depreciation. Stablecoins have proven to be useful as proxy dollars in the crypto world, similar to how dollars are essential in the traditional world. It is only a matter of time before stablecoins or private digital tokens dominate the cross-border payments and global remittances industry.
There are no shortages of hypes and experiments that draw new participants into the crypto space, such as smart contracts, new blockchains, ICOs, tokenization of things, or the most recent trends on DeFi tokens. These projects highlight the possibilities for a much more robust digital future, but the market also needs time to test and adopt. A reliable digital payment infrastructure must be built first in order to allow these experiments to flourish.
In this paper we examined the historical background and economic reasons for the U.S. dollar’s dominance in the world, and the probable conclusion is that the demand for U.S. dollars will likely continue, especially in the middle of a global pandemic, accompanied by a worldwide economic slowdown. The current monetary system is far from perfect, but there are no better alternatives for replacement at least in the near term. Incremental improvements are being made in both the public and private sectors, and stablecoins have a definite role to play in both the traditional and the new crypto world.
Thank you.

Reference:
[1] How the US dollar became the world’s reserve currency, Investopedia
[2] The dollar is in high demand, prone to dangerous appreciation, The Economist
[3] Dollar dominance in trade and finance, Gita Gopinath
[4] Global trades dependence on dollars, The Economist & IMF working papers
[5] Total credit to non-bank borrowers by currency of denomination, BIS
[6] Biggest stock exchanges in the world, Business Insider
[7] McKinsey Global Private Market Review 2020, McKinsey & Company
[8] Central banks current interest rates, Global Rates
[9] Venezuela hyperinflation hits 10 million percent, CNBC
[10] Lebanon inflation crisis, Reuters
[11] Venezuela cryptocurrency market, Chainalysis
[12] The most used cryptocurrency isn’t Bitcoin, Bloomberg
[13] Trading volume of all crypto assets, coinmarketcap.com
[14] Tether US dollar peg is no longer credible, Forbes
[15] New crypto derivatives let you bet on (or against) Tether’s solvency, Coindesk
[16] Remittance Price Worldwide, The World Bank
[17] Interbank Information Network, J.P. Morgan
[18] Jamie Dimon interview, CBS News
[19] Rise of the central bank digital currency, BIS
[20] Speech by Andrew Bailey, 3 September 2020, Bank of England
submitted by Tokenomy to tokenomyofficial [link] [comments]

Why Our Money Is Broken

I’m writing this because I wish to explain in layman terms why the global economy is broken. Most people intuitively feel that the economy is a mess and bad things are happening. Words like corruption, crony capitalism, money printing and bailouts are being tossed about as explanations why the economy is in trouble. While all these things are problems our economy is facing and deserve attention, they are all consequences of a fundamental problem that needs to be understood first and foremost. That is, money itself is broken.
To understand how fiat money we use is broken, one should view money as a commodity just as you would any other good. Any economist would agree that setting a price for a good or service is a bad idea, but for whatever reason, mainstream economists (Keynesians) believe that money is exempt from the disastrous effects of price fixing. As a quick refresher why price fixing is never a desirable policy let’s take a look at the classic example of rent control. Let’s say the average cost of an apartment in your city/town is $1000. Your politicians say that this is outrageous and make a sweeping policy saying that no apartment can be priced above $100. Suddenly the supply for housing cannot come close to matching the demand at this price. Landlords no longer care about the upkeep of the apartment because even if the apartment turns into a shithole, someone will still take it for $100. People no longer have incentives to build new housing or renovate existing housing because they can no longer charge a market rate. The end result is a city in ruins. Try your logic at why price fixing doesn’t work with any good. The market is distorted. Supply and demand are unable to reach equilibrium and everybody loses.
The price of money is the interest rate. When the Federal Reserve engages in interest rate targeting, this is price setting. The Fed will say that the cost of money is too high! We need to get more money into the hands of more people to stimulate the economy, so let’s set the price of money to zero. Take a minute to think about what this means. In a free market the interest rate is established by the supply of money (savings) and the demand for money (borrowing). The interest rate can never be zero. It can only approach zero if the supply (savings) is reaching infinity and/or the demand (borrowers) for money is reaching zero. When the Fed fixes the price of money, it is sending a false market signal across the whole economy about how much money is saved to properly be used for investment. This is where irrational economic behavior occurs on a macroeconomic scale. Strictly speaking, individuals are operating rationally. If the price of money is zero, it is only rational to borrow money and not save your money. The problem is not the individual but rather the Central Bank has distorted the reality of the most important commodity of them all, money itself.
What are the consequences of setting the price of money so low? Think about how this affects borrowers. The economy is operating under the assumption that there are more savings available for investment then there actually are. This leads to malinvestments. Imagine your buddy says he has a million dollars saved and would be happy to lend you this money free of interest. Maybe you’d build a fancy new house or put down a lot of capital to start a business. Then halfway through building your house, your buddy says, sorry, I only had $100,000, not a million. You began building something you should never have started building had you previously known how much money was actually available. You have to scrap your project and you end up with a worthless half built project.
How does this affect savers? Imagine if I had a million dollars in my savings account. With the interest rate so low, I’m being given very strong signals to not keep that money in the bank to be loaned out. If the price of money is zero, why in the world would I want to sell (loan) my money for no profit? You wouldn’t. Your money is losing value everyday it sits in the bank account because the Fed is pumping out more money and giving it to banks to keep the interest rate at zero. You need to buy something with that money. You end up buying a house, stocks or whatever commodity you think will increase in price because you don’t want to see the value of your cash inflated away.
As investments are undertaken that should never have been started and commodities are purchased that should never have been purchased, asset prices rise and we see bubbles forming all over the economic landscape. By messing with price of money the whole economy has become infected. And unfortunately at this stage, there is no cure. We are in too deep. The financial system will implode and the dollar will collapse. Please protect yourself and buy bitcoin.
submitted by Cramson_Sconefield to Bitcoin [link] [comments]

Cryptocurrency Books You Must Read

Cryptocurrency Books You Must Read
When you go out into Internet space to look for some information on the crypto world, you may end up being confused and baffled. Suddenly, everyone’s an expert and each has something to say about it. Without a basic knowledge of the technology, your lack of knowledge may backfire on you one day if you get into the clingy paws of ICO internet scammers, so before you invest, it is important to learn some of the basics and fundamentals.
by StealthEX
Here is a heap of cryptocurrency books we recommend you to read to nurture your crypto side of the brain:

Digital Gold by Nathaniel Popper

In his shortlisted for the 2015 Financial Times and McKinsey business book of the year, Popper tells us the story of bitcoin since its early days. He tells the story through the eyes of famous and bright crypto influencers including South American and Asian millionaires, the Winklevoss twins and the legendary Satoshi Nakamoto. The author compares the digital currency to gold, claiming cryptocurrency to be the new global standard of storing the value.
Some readers say that Digital Gold book is a ready material for a thriller – unexpected plot twists, powerful influential organizations, drugs, blackmail make up the fascinating story to read and a really good starting point to understand what Bitcoin and Blockchain Technology is. The only downside that it only takes you up to 2015 but don’t worry, those were jam-packed years of growing.

The Internet of Money by Andreas Antonopoulos

Even though Andreas Antonopoulos is one of the world’s foremost bitcoin and blockchain experts, he has a unique talent to simply explain complicated materials herewith maintaining the significance of the topic. For readers who want to explore more theory, The Internet of Money book is actually a collection of talks given by technology-enthusiast Andreas Antonopoulos, where he surpasses all the technical “geeky” details. In each section he delivers complex discussions in average words, exploring the economic, political, social and philosophical sides of the technology that has forever affected our world.
By the way, the book was released in 3-volume series so you won’t miss out on any trivia.

The Little Bitcoin Book: Why Bitcoin Matters for Your Freedom, Finances, and Future by Alejandro Machado, Jimmy Song, Alena Vranova, Timi Ajiboye, Luis Buenaventura, Lily Liu, Alexander Lloyd, Alex Gladstein

Why does the price keep changing? Is Bitcoin worth investing my money into? How does it even have value? Why do people keep saying that it is the future of currency? The answers to all these questions you are going to find out in this book written by 8 experienced crypto experts. They finished it in just four days and they did well in accumulating their knowledge in a book format along with covering a lot of different questions and concerns around the digital currency. The book also explains how Bitcoin affects people’s freedom and opportunities. Also, there is a Q & A section with some of the most frequently asked questions about Bitcoin.

Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske & Jack Tatar

The book provides a useful framework on some popular cryptocurrencies such as Bitcoin, Litecoin, Ethereum, Ripple, etc. and also explains why and how to invest and what would be the best thing to invest into. The authors make a major focus on investment strategies that really work, and teach you on fundamental notions like volume, liquidity and volatility of crypto coins. The authors use infographics, equations, historical data and statistics to teach you about crypto assets and markets.
This crypto book is as suitable for the beginners as for the advanced investors. It’s written in a straight forward style and will probably serve as a good reference for the future.

Mastering Bitcoin: Programming the Open Blockchain by Andreas M. Antonopoulos

Another Andreas Antonopoulos book but at this time an intermediate level. If you want a technical explanation, with code samples – get this book, Mastering Bitcoin is for people who already have a programming or computer science background. Well-delivered, useful and enlightening – the book takes you through the intricate world of bitcoin, providing the knowledge you need to participate in the internet of money. Whether you’re a software developer, startup investor, or simply curious about the technology, this edition is definitely worth your attention!

The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous

This is a book written by a world-class economist Saifedean Ammous, where he explains how money works, why some money works better than the others and how monetary systems evolved throughout history – from ancient times to our days.
Some people call it an eye-opening book, which would make you overthink the concept of money in general. Anyway, the book certainly is thought-provoking and it might induce you to dive deeper into the crypto world. The author doesn’t try to predict the future of money but to widen our horizon, to understand the problem of our economic system, and see the possibility of having a decentralized alternative to central banking.

The Book Of Satoshi: The Collected Writings of Bitcoin Creator Satoshi Nakamoto by Phil Champagne

Have you ever wondered who stands behind the whole crypto industry? Who made it all possible? The fun thing is that nobody knows. All we know is the name – Satoshi Nakamoto. In his book, Champagne dives deeper into his mysterious personality and investigates who Nakamoto might be, whether it is one person or a group, and how it was possible for Nakamoto to create the game-changing Bitcoin while remaining completely anonymous. The book includes actual emails and internet posts by Nakamoto, presented in chronological order. Fine resource for anyone interested in Bitcoin, it gives insight into Satoshi’s thinking, and readers can look at Bitcoin from a whole new perspective!
And speaking of Bitcoin, if you need to exchange your BTC and many other coins, StealthEX is here for you. We provide a selection of more than 250 cryptocurrencies and constantly updating the list so that our customers will find a suitable option. Our service does not require registration and allows you to remain anonymous. Why don’t you check it out? Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example ETH to BTC.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
Follow us on Medium, Twitter, Facebook, and Reddit to get StealthEX.io updates and the latest news about the crypto world. For all requests message us via [email protected].
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/09/01/cryptocurrency-books-you-must-read/
submitted by Stealthex_io to StealthEX [link] [comments]

Why I bought LLOY at a time like this.

edit - I came up with a far better title: Why I YOLO on LLOY
I have held my Vanguard for three years and since then had read a few books (albeit badly) that inspired me to take some risks: Armchair economist, Freakonomics, Thinking Fast Thinking Slow, 80/20 Principle, Algebra of Happiness, Smarter Investing, somewhat through Intelligent Investor but it's a slow read.
I had never experienced picking individuals and foolishly it was something which I wanted badly enough to open with AJBell this FY. Tbh I regret it so if you're already happy with your Vanguard offerings then I can't say I'm happy to own individual picks now. Hopefully I'll get onto the psychology of why later.
So why did I pick LLOY? I'm not going to say that I'm ecstatic about it. It was painful to push the button on it. I am extremely bearish (in life not just investing!), this comes from being a millennial, and I am certain that there is a government/company waiting just around the corner to overcharge me for goods and services.
I did do some quick maths from the tiny fraction my pea brain gleamed from Intelligent Investor:
Assets - 1065.871bn Liabilities - 1000.070bn Long Term Debt - 143.312bn
1065.871 - (1000.070 + 143.312) = 1065.871 - 1143.382 = -77.511
Lloyds really doesn’t appear to be a good buy.
But I did so anyway… Somewhat probably from thing's I've not fully understood from Intelligent Investor!
Banks are out of favour. They have been out of fashion as long as I can remember.
Go on why did you buy it despite all this then?
Intelligent Investors advice when looking for value is to find companies which are out of fashion but still adequately ran (probably a better word there for adequately).
This isn't the 2008 financial crisis - we aren't in this mess because the Banks released a deadly virus. But that doesn’t mean that LLOY wasn't heading for failure before this. The stock was performing badly before this storm. The profits we're lower than expected but they had the PPI bill to pay.
The bank is led by António Horta-Osório - he has led the bank since 2011, nearly 10 years of service. He even took time off for his mental health before it was cool to do so! They're even reducing their emissions by 50% by 2020. Forget Elon, this guy is as fellow kids as they come.
I'm not worried about the FinTech's yet. I have a few fintech accounts and they're great. I rolled out my joint account in a few clicks. I use it for all my spending. One thing which I think the FinTechs will do better with is getting extremely rich data on their customers spending habits and will therefore be able to sell this to aggregators for a higher price. LLOY have a £3bn digital transformation project which should be completing next year, we'll have to see what they have come up with.
(you can tell I started to give up here) LLOY is the leader in the Mortgage market. They even have the Tesco portfolio! Should the country not be able to afford their mortgage bill, I just can't see the government letting it all go. They helped fund this BTL nation through their mortgage interest write offs at the time when rental yields were far higher and so were interest rates! There won't be anyone around to buy the repossessions, all the elderly are dead from Corona, and the youth don’t have any money to buy the houses. I don't think prices can go down to the point at which GenX/Mil can pay for them regardless. The next Govt. handout I can see is an enforced mortgage readjustment by the Govt. to the lenders for as long as borrowers need.
There is probably far more which might back this up, but that doesn’t matter because the answer is that this was a risky buy, I have no doubt there is 10 fold more rationale behind not buying this. Just look at the guy the other day who was selling his WH, 200% what a lucky sole, their website was absolute garbage in a time when everyone is betting online!
Anyway finally, the psychology behind why I should have stayed with VG. There are no purchase fees! When I buy through AJ and I see that there is a £10 dealing fee I feel a loss. This is mentioned heavily in investment books but I want to talk about the psychology behind it. In Thinking Fast Thinking Slow there is lots of talk about how we as humans react to loss, there are lots of studies mentioned in the book and it is fascinating. The essential take-home point here is that we as humans see loss completely different to gains. You can feel ecstatic finding £5 on the floor but feel a huge sense of dread when a scooter taxi rips you off by £5 in Vietnam and you think about it for the rest of your life!
If you can gleam one thing from the Bitcoin culture its HODL!
submitted by ryderredman to UKInvesting [link] [comments]

morning joe

Stocks are set to end the week on a high note after four of the biggest tech stocks - Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Alphabet (GOOG, GOOGL) - reported quarterly results that beat high expectations. Apple easily exceeded estimates on the top and bottom lines, and announced a four-for-one stock split, sending shares past the $400 threshold in after-hours trading. Amazon's sales soared, and operating income nearly doubled compared with the big drop analysts had expected. Facebook posted 11% revenue growth and issued stronger-than-expected sales guidance for the current quarter. Results from Google's parent were a bit murkier, showing the company's first-ever year-over-year decline in advertising revenue, but sales from its cloud-computing segment came in well above expectations. Big Tech has been Wall Street's mainstay this year, and the latest quarterly results look to accelerate that trend. Amazon and Apple are up 65% and 31%, respectively, in 2020, while Facebook and Alphabet each have gained more than 14% over the period. With all four stocks moving higher in after-hours trading, the tech titans likely will add more than $200 billion to their combined market value.
U.S. economy shrank by a third in Q2
The Commerce Department said U.S. gross domestic product collapsed at a 32.9% annualized rate in the second quarter, the steepest decline since the government started keeping records in 1947, as COVID-19 crushed consumer and business spending. Meanwhile, in a sign of a faltering jobs market, the number of workers applying for initial unemployment benefits rose for the second straight week, to 1.43 million, after nearly four months of decreases following a late-March peak. The Q2 economic contraction came as states imposed lockdowns in March and April to contain the coronavirus and then lifted restrictions in May and June, allowing growth to resume. Economists expect the third quarter to show growth, but the summer rise in infections likely will temper gains.
Senate fails to advance jobless benefits extension
Meanwhile, no signs of progress are evident in talks between Republicans and Democrats over a new coronavirus relief bill. The U.S. Senate failed yesterday to advance an effort to extend a $200 per week supplement to unemployment insurance benefits. Senate Republicans and the White House had sought to cut the supplement from $600 through September, after which those collecting unemployment benefits would get 70% of their previous wages when combined with state benefits. While much of the focus has been on the expiration of the additional $600-per-week of unemployment benefits, an eviction moratorium is receiving increasing attention as well.
China factory activity expands for fifth straight month
China’s official manufacturing purchasing managers' index came in better than expected, rising to 51.1 in July from 50.9 in June for its highest reading since March. July marked the fifth consecutive month that the closely watched measure of China's factory activity topped the 50 mark that separates expansion from contraction. Combined with China's official non-manufacturing purchasing managers' index, which indicated a slight deceleration in the service sector, the data suggests China's factories have returned to pre-coronavirus levels but consumer demand remains much weaker, which means inventory is piling up.
Chinese-backed hackers reportedly targeted Moderna for vaccine data
China rejects charges that hackers linked to its government targeted Moderna (NASDAQ:MRNA) to steal data related to research on a coronavirus vaccine. Citing an unnamed U.S. security official, Reuters reported yesterday that Chinese hackers targeted the U.S. biotech firm earlier this year. Moderna said it had been in contact with the FBI and was made aware of the suspected "information reconnaissance activities" by a hacking group mentioned in last week's Justice Department indictment, where two Chinese nationals were accused of spying on the U.S., including three unnamed U.S.-based targets involved in medical research to fight COVID-19. The two other unnamed medical research companies mentioned in the Justice Department indictment are described as biotech companies based in California and Maryland - descriptions that could fit Gilead Sciences (NASDAQ:GILD) and Novavax (NASDAQ:NVAX). Go deeper: J&J (NYSE:JNJ) COVID-19 vaccine candidate shows positive effect in primate study.
Amazon's $10 billion Internet satellite plan wins FCC approval
While overshadowed by the company's earnings, Amazon.com's (AMZN) tech ambitions got a boost as the FCC approved its $10B plan to put thousands of satellites in the sky to provide high-speed Internet to unserved and underserved areas. The company's Project Kuiper - using 3,200 low Earth orbit satellites - would compete in that area with the Starlink project at SpaceX (SPACE).
Australia to force Google, Facebook to pay for news
Australia will become the first country in the world to force Facebook (FB) and Google (GOOG, GOOGL) to pay publishers for the news content featured on its sites. It will give the companies three months to negotiate fair pay with media businesses there, a move to ensure competition and consumer protection as well as a sustainable media landscape. Other companies are likely to be targeted for similar moves by Australia's government later.
U.K. fraud office charges Airbus subsidiary over Saudi deal
The U.K.'s major economic crimes investigator has charged Airbus' (OTCPK:EADSY) subsidiary GPT Special Project Management and three individuals in connection with a defense contract the country arranged with Saudi Arabia. Airbus says the Serious Fraud Office's investigation related to contractual arrangements that predated its acquisition of the subsidiary. The charges represent a step forward in one of the SFO's most politically sensitive probes, which has been viewed as a potential threat to the U.K.'s relationship with the Saudis. Go deeper: Airbus works to slow cash burn, puts brakes on production.
What else is happening...
Walmart (NYSE:WMT) memo points to cutting jobs in 'streamlining.'
Facebook (FB) finally securing rights to show music videos.
Twitter (NYSE:TWTR) account breach involved phone-based phishing attacks on employees.
Thursday's Key Earnings Apple (AAPL) +6.3% PM on strong earnings, stock split. Amazon (AMZN) +5.5% PM on strong Q2 earnings, Q3 guidance. Alphabet (NASDAQ:GOOG) flat PM after soft ad revenue. Facebook (FB) +5.9 PM on strong earnings, user growth. Ford Motor (NYSE:F) +2.5% PM despite seeing weak FY demand. Gilead Sciences (GILD) -3.6% PM as pandemic disrupts earnings. US Steel (NYSE:X) flat PM after Q2 loss, upbeat Q3 guidance. Electronic Arts (NASDAQ:EA) flat PM after Q2 beat, better-than-expected FY guidance. LTC Properties (NYSE:LTC) -3.2% AH as Q2 rental revenue takes a hit. Xilinx (NASDAQ:XLNX) -2.7% PM on in-line Q2, outlook. Stryker (NYSE:SYK) -2.8% AH despite Q2 beat. Vertex Pharmaceuticals (NASDAQ:VRTX) +1% AH on robust Q2 Trikafta sales. OPKO Health (NASDAQ:OPK) -6% PM after healthy Q2 earnings. Atlassian (NASDAQ:TEAM) -7% PM on FQ4 customer weakness, downside EPS forecast. Exact Sciences (NASDAQ:EXAS) -3% AH on pandemic disrupting Q2 revenue. Expedia (NASDAQ:EXPE) -6% PM after massive Q2 bookings dip. Seattle Genetics (NASDAQ:SGEN) -2% AH despite Q2 beat. Cabot Oil & Gas (NYSE:COG) flat PM after Q2 beat, unchanged guidance. XPO Logistics (NYSE:XPO) -4% AH on weak Q2 shipping metrics. Shake Shack (NYSE:SHAK) -4.8% AH on Q2 miss, pulled Q3 guidance.
Today's Markets In Asia, Japan -2.82%. Hong Kong -0.47%. China +0.71%. India -0.26%. In Europe, at midday, London -0.17%. Paris +0.01%. Frankfurt +0.27%. Futures at 6:20, Dow +0.13%. S&P +0.19%. Nasdaq +0.84%. Crude +0.45% to $40.05. Gold +1.48% to $1,995.90. Bitcoin +1.83% to $11,161. Ten-year Treasury Yield -1.3 bps to 0.53%
Today's Economic Calendar 8:30 Personal Income and Outlays 8:30 Employment Cost Index 9:45 Chicago PMI 10:00 Consumer Sentiment 1:00 PM Baker-Hughes Rig Count 3:00 PM Farm Prices
submitted by upbstock to Optionmillionaires [link] [comments]

Masked Hero’ Calling to ‘Buy Bitcoin’ Amidst the Peaceful Protests and Riots in the US

Bitcoin is taking an active part in the riots across America.
People are protesting since last week over the death of George Floyd, a black man who died while pleading for air as a white Minneapolis officer jammed a knee into his neck.
One protestor in the Los Angeles neighborhood talked about opting out of the current scenario by moving into bitcoin. He said,
“WE LIVE IN A SYSTEM THAT WILL NOT ALLOW US TO THRIVE. […] MY MACRO SOLUTION FOR EVERYONE IS TO OPT OUT AND EXIT THE ECONOMY AS A WHOLE AND THE WAY WE DO THAT IS BY BUYING BITCOIN.”
“Who is this masked hero?” enquired Jesse Powell, founder and CEO of cryptocurrency exchange Kraken on Twitter.
The protests erupted only recently but it needs to be pointed out that in the first five months of 2020, things weren’t going well either. People were under lockdown due to the coronavirus pandemic that resulted in unemployment soaring to nearly 24% with jobless claims since mid-March at a staggering 40.8 million.
While people are struggling to fed their family and pay their rent and mortgages, US Federal Reserve printed money and stocks are flying.
THE DISCONNECT BETWEEN THE ECONOMY AND THE FINANCIAL MARKETS IS NOW THE GREATEST IT’S BEEN SINCE ANCIENT ROME.
This wasn’t the first incident of bitcoin being highlighted during the protests either.
Earlier this week, another protester in Dallas carried a sign saying “Bitcoin will save us,” much to the ire of the people both from inside and outside the crypto industry.
Another one has been in Raleigh, North Carolina, where the poster of the protester read “Bitcoin & Black America” referring to the book authored by Isaiah Jackson.

BITCOIN IS THE PEACEFUL PROTEST.

Crypto industry has also been sharing its solidarity to the cause with Ripple CEO Brad Garlinghouse supporting those “who are fighting to save Black lives,” although he “can’t ever fully understand the pain of our Black community that recent and past events have caused.”
Bitcoin has been a part of protests in other parts of the world as well. Last year, the pro-democracy movement in Hong Kong supported the adoption of the digital currency. Also, in countries like Venezuela, Argentina, Chile, and others, cryptocurrencies played a role.
Markets Rising amidst the Chaos
For the first time in about a month, this week the price of bitcoin also jumped above $10,000 amidst the raging protests, although we are back to $9,500.
But bitcoin isn’t the only one, while many cities are on fire in the US, the S&P 500 enjoyed its greatest 50-day rally in history while struggling with the coronavirus pandemic.
If history is any indication, these 37.7% returns would further expand in the days ahead.
THE #GEORGEFLOYDPROTESTS HAVE HAD ZERO AFFECT ON THE STOCK MARKET.
HERE’S A GRAPH OF THE DOW JONES INDEX SINCE #GEORGEFLYODMURDER. AS YOU CAN SEE, IT JUST KEEPS GOING UP.
THE POOR ARE IN PAIN, THE COUNTRY IS ON FIRE, BUT THE RICH KEEP GETTING RICHER. PIC.TWITTER.COM/TYDIY09PAS
— MATI GREENSPAN (TWEETS ARE NOT TRADING ADVICE) (@MATIGREENSPAN) JUNE 3, 2020
The reason behind this disconnection between the stock market and the economy is the trillions of dollars injected into the market by the Federal Reserve and government. Trader and economist Alex Kruger said,
“EUROPE SHARPLY REDUCING POLITICAL TAIL RISK, JAPAN FISCAL PACKAGE 40% OF GDP, CHINA FEARS OVERDONE AS TRUMP STEPS BACK, ECONOMIES REOPENING, US RIOTS THE MARKET HAS SPOKEN. HENCE WHY SO MUCH GREEN.”
But the widespread civil rest in the US could act as a headwind for stocks. Currently, bitcoin is trading at above $9,600 and is expected to hit $20,000 this year.
submitted by kealenz to GoldandBlack [link] [comments]

The Fundamentals of Bitcoin Trading/Bitcoin storm

The Fundamentals of Bitcoin Trading/Bitcoin storm
First, equities: Expected earnings are down across the board, presumably by a whopping quantity. A number of weeks ago, within the U.S. and Europe, business was humming along, albeit with trepidation. Currently, bars and restaurants are closed in many population centers, events are cancelled, outlets are shut, planes are grounded…. The list of sectors impacted by the required virus precautions is long and alarming.
https://preview.redd.it/70gmkkotxdf51.jpg?width=730&format=pjpg&auto=webp&s=23390e052c04b6bbb5309af4b52422963edb3192

Next, government bonds: If there’s one issue the bond market hates, it’s inflation. The unwinding of globalization as a results of constricting offer chains can push up manufacturing costs which will feed through to costs. Liberally sprinkle cash round the system within the hopes of stimulating spending, in an exceedingly provide crisis, and you add to the inflationary pressure. Nominal yields on public debt are at traditionally low levels; inflation can push even additional real yields into negative territory.
As for company bonds, the sharp drop in earnings not to mention increasing costs might trigger a wave of defaults.
What about gold? The traditional shelter can in all probability do well within the medium term as investors bear in mind its anti-inflationary properties. Gold traditionally outperforms in low-rate environments – no shortage of those these days. Plus, its lack of income makes it less prone to drops in economic activity.
And then there’s Bitcoin storm. Its high volatility makes it unsuitable for several investors. However those who think gold makes sense in this world gone mad are presumably going to take a closer look, particularly once the perspective-changing storm we’ve simply weathered (with in all probability a lot of to come back). Even those skeptical of gold’s place in an exceedingly diversified portfolio are sure to be curious about a digital alternative that solves for a number of the metal’s weak points while revealing relationships with the broader economy that no other asset has
Last week I wrote concerning how it’s not a secure haven. Here’s the issue: it doesn’t want to be.
See additionally: As This Crisis Worsens, Bitcoin storm Will Become a secure Haven Once more
For those worried regarding inflation, Bitcoin storm is even additional resistant than gold. Its laborious cap and pre-programmed provide are resistant to fluctuations in value. A sharp jump in the price of gold, but, is possible to bring a lot of offer onto the market as production ramps up, and could even impact the estimated provide limit as various mining ways become profitable.

https://preview.redd.it/3usx9o3wxdf51.jpg?width=474&format=pjpg&auto=webp&s=1f5ede5e81d642b6bc33c76fb5e617d987bf6219
For those worried concerning a pointy economic slump, Bitcoin storm is practically the sole asset indirectly impacted by macroeconomics. There’s no income to chop and no offer chains to hinder access. External factors like energy prices and supply chains will impact miner economics, but Bitcoin storm itself adjusts for shifts in the upkeep of its network. When miners close down, Bitcoin storm becomes chper to mine, that eventually makes the enterprise profitable again.

What makes Bitcoin storm even more of a distinctive asset class is it can be indirectly impacted by macroeconomics, in a very huge approach. The impact will come from many vectors, however particularly loose monetary policy, the currency markets, emerging economies and populist tendencie
1) Loose monetary policy: With central banks around the planet hitting the markets with no matter they'll, cash offer constraints have been thrown out the window. As this crisis unfolds, the number of money that can enter the system to help out not only markets but additionally voters and firms can dwarf what we tend to saw in 2008. Back then, the markets were threatening to drive the economy into a wall, therefore reassuring them was paramount. Currently the threat to the economy is driving markets into the wall. The usual ways that assuage market panics aren’t visiting stimulate demand that's reeling from mandated shutdowns, job losses and generalized worry.
Printing cash may maybe facilitate if it really gets into the hands of the consumers, but that can produce inflationary pressure in an economy with no tools left to fight it. The usual anti-inflation weapon is raising interest rates – but doing that during a heavily indebted surroundings might trigger waves of company and even sovereign defaults.
Growing inflationary pressures and steady currency debasement will presumably increase interest in disinflationary assets like Bitcoin storm and gold which will additionally be used for payment in some circumstances.
a pair of) Currency markets: Investors around the globe are fleeing into bucks, pushing up its worth relative to different currencies. This might facilitate the U.S. client by making imports cheaper, if imports weren’t disrupted by provide chain constrictions. But with a stronger dollar, U.S. producing can become uncompetitive, and foreign holders of greenback-denominated debt might get pushed into default. Other countries’ import and debt service prices can skyrocket, weakening their currencies and pushing up the dollar even more.
The ballooning demand for greenbacks could lead to a currency liquidity crunch – the swap lines extended to foreign central banks in last Sunday’s Fed intervention were expanded even any on Thursday, a worrying sign that the initial live wasn’t enough to alleviate the strain on the FX markets.
See Conjointly: Into the Unknown: No Limit on Fed Cash Injections
Calls are growing for concerted action the same as the 1985 Plaza Accord, however getting economic powers to follow the lead of an “America 1st” government whose leader based mostly a lot of of his campaign on guarantees of a wall is going to be a a lot of tougher challenge than within the post-stagflation desperation of the late twentieth century. With fractures in the world currency order turning into increasingly apparent, economists and investors can be asking what the next monetary order can seem like. Bitcoin storm could or might not be part of that resolution however it's a brand new tool in the box.
three) Rising economies: The sharp escalation of greenback-based mostly costs, combined with a demand crunch, may push non-greenback economies into recession, that is seemingly to steer to social unrest. In some elements of the planet, this might be met with swift retaliation or even regime modification. The confiscatory bias of political parties navigating an influence struggle could intensify interest during a liquid and semi-non-public store of worth.
4) Populist tendencies: Whereas a lot of established democracies will deal with recessions and social unrest through negotiations and trade-offs, even they could veer towards populist tendencies. These will most likely take the shape of extra support for overwrought health systems, also for voters and companies hit hard by mandated shutdowns and resulting slump in demand.
https://www.cryptoerapro.com/bitcoin-storm/


https://preview.redd.it/i75a7muzxdf51.jpg?width=770&format=pjpg&auto=webp&s=16f5d531ac24d9c71d249f734a8b5b4dd703ea6f
submitted by cryptoerapro to u/cryptoerapro [link] [comments]

LOEx Market Research Report on July 31: BTC may test the support level trend

LOEx Market Research Report on July 31: BTC may test the support level trend
[Today's Hot Tips]
1. [91.5% of the start-up progress of the Ethereum 2.0 testnet has been completed]
On July 31, according to the official data of Ethereum, as of now, 479,744 ETH has been pledged to the Ethereum 2.0 testnet. This means that 91.5% of the start-up progress has been completed, and 1392 validators (44544 ETH) are needed before the start.
2. [The Bank of Japan appoints a new head of digital currency supervision]
According to Reuters, the Bank of Japan said on Friday that it has appointed its chief economist Kazunari Kamiyama as the head of the payment and settlement department, which is responsible for overseeing the central bank's digital currency. Kameda Production takes over as chief economist and head of the statistics department of the Bank of Japan.
3. [Zcash launches version 3.1.0 and supports Canopy upgrade on the testnet on August 5]
On July 31, Zcash development company, Electric Coin Company (ECC), officially announced that Zcash has officially released the latest version 3.1.0. This version contains all the Canopy network upgrade code, and Canopy upgrade support has been enabled on the test network. The Zcash Canopy network upgrade will be activated at a block height of 1028500 on the test network, and the upgrade time will be around August 5. After that, Canopy will upgrade the main network at a block height of 1046400, and the upgrade time is about mid-November.
[Today's market analysis]
Bitcoin (BTC)BTC continued to fluctuate and rise in the early morning, reaching a maximum of 11173.59 USDT. Currently, BTC is adjusted within a narrow range around 11140 USDT. Most mainstream currencies have risen to varying degrees in the early morning, followed by a callback, and ETH broke through 340 USDT in a short time. BTC is currently reported 10992.4 USDT on LOEx Global, a decrease of 0.16% in 24h.
This week, the US Senate launched another stimulus plan that will increase the Fed’s inflated balance sheet by more than $1 trillion. In response, gold reached an all-time high and Bitcoin soared to $11,000.
It creates what analysts call a "perfect" macroeconomic environment to allow rare assets such as cryptocurrencies and precious metals to grow. They also claimed that this "ideal" situation may continue into the second half of this year.
More and more investors are aware that Bitcoin is the horse that has the fastest gains against inflation, and perhaps from now on, the performance of cryptocurrencies may slightly outperform precious metals.
Bitcoin is struggling to stay above the $11,200 resistance level against the U.S. dollar. BTC is currently correcting lower, as long as the price trades above the $10,700 and $10,300 support levels, it may resume its upward trend. Any further losses may start a further downward correction, and the price may even break below the $10,000 support level.
Operation suggestions:
Support level: the first support level is 10700 points, the second support level is 10300 integers;
Resistance level: the first resistance level is 11200 points, the second resistance level is 11500 points.
LOEx is registered in Seychelles. It is a global one-stop digital asset service platform with business distribution nodes in 20 regions around the world. It has been exempted from Seychelles and Singapore Monetary Authority (MAS) digital currency trading services. Provide services and secure encrypted digital currency trading environment for 2 million community members in 24 hours.
https://preview.redd.it/22xgyo5cu4e51.png?width=603&format=png&auto=webp&s=c0ffb9eeca1a79189a977a146f2b3e9d13306079
submitted by LOEXCHANGE to u/LOEXCHANGE [link] [comments]

Suggestions for a better Bomb community

Hello, Bombinos.

First of all, huge thanks to all the team, mods and people working on the project. I'm writing some suggestions aiming to organize and grow our community and increase awareness about the project. It's divided in three specific topics related to strategy, communities and marketing. But first, I'll suggest some aesthetic changes in this subreddit to make it look more friendly.
A) The font color in the topic on the front page is too dark in my desktop screen. The background is black and the font is dark gray, making it almost unreadable. It has to be changed to a lighter tone.
B) The text on the sidebar is incomplete. I made some alterations in the new text below.
"Bomb, the original and first deflationary currency experiment, was born after an airdrop in the end of 2018 aiming to answer one simple question: Can a deflationary cryptocurrency work as a store of value? The Bomb currency works by destroying 1% from every transaction recorded in the Ethereum blockchain. Only 1,000,000 tokens were minted. There will never be newly minted tokens."
C) The sidebar should include a price ticker similar to the one used in the Telegram group and include our etherscan address.
D) The sidebar should also include links to the Telegram and other communities.

1- Strategy:

A) First deflationary currency and importance of the Bomb Token against governments printing money.
The economist Friedrich Hayek from the Austrian school, in his acceptance speech titled "The Pretense of Knowledge" at the Swedish Nobel Academy, emphasized the importance of letting the economy free of government interference, specifically in the case of a continuous injection of additional amounts of money at points of the economic system where it creates a temporary demand, which generates a future imbalance after the artificial demand ceases. We are seeing this today with the interference of governments on the economies after the coronavirus. Trillions of dollars are being given to companies that don't have any idea how the consumers will react when the economies restart. The irrationality of the human behavior must be considered in this case, because there's no scientific theory to guarantee how the people will react after the restrictions are over.
With all this new money on the market, we are risking a long term inflation that devalues national currencies like we have never seen before. That's where a deflationary currency becomes important as a hedge against this anomaly created in the market and this enormous sum of new money.

B) Increasing the network effect to protect the asset
To have a chance against its competitors, Bomb must protect its network against copycats and bad actors. The best way to do this is to increase the number of holders and, subsequently, wallets, to squash the power of any holder to manipulate the price and even crash it. We have to protect our network the same way Bitcoin did, increasing the number of financially interested people to a point where it's not productive to manipulate the price.
Bomb has another quality that makes it prone to manipulation and volatility. One person (or entity) holding a lot of tokens can game the system using an exchange that runs off-chain transactions to crash the price. We are seeing this today. The transactions are happening but there's no burn and the price keeps going down. The only way to protect against this kind of bad actor is to increase the network effect and spread the tokens to a lot more holders, people interested in defending the currency.

C) Increase the total holders and wallets to improve liquidity in exchanges and awareness
Increasing the total number of holders would reduce the capacity of bad actors to wash trade. More people interested means more transactions, more transactions generate smaller spreads. Smaller spreads make it harder for bad actors to manipulate the price through wash trading.

D) Evaluate new listings or removing old ones
Yes, we need at least on more good exchange like Kraken. We should first wait for more holders before going after new listings. And we should look forward removing Bomb from bad exchanges.

2- Communities:

A) Focus decisions on Reddit and Telegram (only three communities: news, price discussion and Bombassadors) and sharing everything published on Facebook and Twitter.
Voting and decisions should be centralized in only one place. We can share the discussions everywhere else, but the voting and decisions must be centralized to one platform.

B) Elect mods to these communities to increase decentralization
I don't know how the Bombassadors program work, but we need to keep the current mods and choose new ones to run things more smoothly. Reddit and Telegram take a lot of time and we absolutely need more people.

3- Marketing:

A) Use the small war chest wisely because Bomb is deflationary and becomes more and more scarce by the minute. We have to extended the war chest as long as we can to reach a more valuable network.
Any marketing campaign must consider the increase in the network effect. We should focus on campaigns that attract outside interest. Example: each 15 days somebody could be rewarded with 50 bombs for an article shared on Reddit, Twiter, Facebook and 4chan. The prize must be voted and awarded to the best article that was shared, not only published.
Articles or content that eventually reach a lot of engagement could be awarded outside of this prize with 100 bombs, discretionarily, by the mods.

B) Use the funds only in campaigns that bring new people to the project instead of distributing it in the existing community to produce meaningless burns.
Again. Burning will not increase the network value. After meaningless burns we will have the same number of interested people, but less tokens on the market. This way Bomb will never reach the store of value status.

C) Reward people that generate quality content (like Pedro's 3D printed bombinos) and people that share this quality content and generate a lot of awareness.

D) All campaigns must answer positively the question: Does this increase the network effect and represents quality content?

E) Kill proposals that value meaningless token burns to create pumps.

F) Don't forget to have fun! Good memes could be rewarded every 15 days, after voting, with 20 bombs.

Suggestions are welcome. Let's find some common ground and move forward. And thanks for reading!
submitted by KazaCthulhu to BombToken [link] [comments]

Time to Buy The Bitcoin Dip? Economist Reveals HORRIFIC Future Economy. Legendary ... Nobel Prize-winning Economist Paul Krugman on Tax Reform ... Economist Blasts The Fed, Stimulus, Bitcoin & Makes Bold ... I come to bury bitcoin, says UBS' global chief economist ...

Back in March 2018, Harvard economist Kenneth Rogoff said, “Basically, if you take away the possibility of money laundering and tax evasion, [Bitcoin’s] actual uses as a transaction vehicle are very small.” Rogoff also said that the price of Bitcoin is more likely to be $100 rather than $100,000. A lot of zeros As bitcoin’s price passes $10,000, its rise seems unstoppable. But getting out of such an illiquid asset can be harder than getting in . Finance & economics Dec 2nd 2017 edition ... Back in March 2018, Harvard economist Kenneth Rogoff said, “Basically, if you take away the possibility of money laundering and tax evasion, [Bitcoin’s] actual uses as a transaction vehicle are very small.” Rogoff also said that the price of Bitcoin is more likely to be $100 rather than $100,000. THE PRICE chart at CoinDesk, a cryptocurrency news site, begins on July 18th 2010, when a bitcoin could be had for $0.09. By November 2013 it had reached $1,124. Economist: Bitcoin Could Be Setting Up for an Ideal Short Opportunity. News. October 28, 2020 Admin Leave a Comment on Economist: Bitcoin Could Be Setting Up for an Ideal Short Opportunity. Bitcoin is currently caught in an intense updraft that has allowed its price to gain some serious momentum throughout the past couple of weeks. This ongoing rally first began when news broke regarding ...

[index] [40417] [26318] [41052] [35638] [31166] [13068] [5925] [51312] [25921] [9229]

Time to Buy The Bitcoin Dip?

Business Insider recently caught up with Nobel Prize-winning economist and New York Times columnist Paul Krugman to talk taxes, Trump, and bitcoin. Krugman i... Bitcoin Time To SHINE?! March 2020 Price Prediction & News Analysis - Duration: ... Thomas Lee Presents The Economics of Cryptocurrencies Upfront Summit 2018 - Duration: 23:27. Upfront Ventures ... Peter Schiff, Financial commentator and economist has a virtual sit-down with Patrick Bet-David. Visit Europac site https://bit.ly/2LiN9ap Visit Schiff Gold ... Bitcoin ( BTC ) has already hit an all-time high this week, according to one price measurement from popular statistician Willy Woo. In a series of tweets on ... Bitcoin price has been reaching closer to all time highs. In this video we discuss current events as well as where the price of bitcoin and ethereum may go b...

#