November 27, 2017 at 10:00 am #37306
Guatave Courbet The cliffs of Étretat after the storm 1870 • Why Are We Addicted To Debt? (Forbes) • China Debt Grows At Faster Pace Despite Ye
[See the full post at: Debt Rattle November 27 1027]November 27, 2017 at 10:37 am #37307
Why we love debt is simple; it allows us to buy stuff (we mostly don’t need); just like Whimpy, in Popeye’s cartoons; I would gladly pay you Tuesday, for a hamburger today.
I hate debt and have none. I know the game; and refuse slavery of any kind (and there are myriad types).
The above household debt to GDP re: Thailand is too low by the Thai governments own reckoning; it’s about 85% at this time.
There are many factors, not the least of which is easy credit. But it’s not cheap; 8% at least.
Thailand is still, largely, a cash based economy which is slowly being creditized for most, with no clue about credit/debt and economics outside of; if one has the money, one buys the product; if one does not have the money, then that one doesn’t buy the product.
The Galoots are everywhere across the globe…November 27, 2017 at 1:33 pm #37309
Very true. Think maybe the Wimpy character was sponsored by Wall Street? He was a true American pioneer!November 27, 2017 at 1:41 pm #37311
Think maybe the Wimpy character was sponsored by Wall Street? He was a true American pioneer!
LOL; Indeed, most probably true…November 27, 2017 at 1:56 pm #37312
“Happy Birthday to Anders Celsius, born on this day in 1701. He died in 1744 aged 42, although his great rival Fahrenheit thought he was 108.”November 27, 2017 at 1:59 pm #37313
Don’t know if everyone recognizes this
“A Jewish man calls his mother: “How are you, Ma?’ ‘Not so well.’ “Why not?” ‘I haven’t eaten in 8 days, 3 hours and 10 minutes.’ ‘But why on earth not?’ ‘I didn’t want my mouth to be full when you called.”November 27, 2017 at 2:39 pm #37314
“Britain Must Accept High Immigration Or Forget Trade Deal With India (BI)”
I’m sorry, India WANTS to send their intelligensia, doctors and engineers out of the country? I somehow doubt it, but if so, Britain would be doing them a favor by not taking them. And India would refuse to buy British products, warplanes, Heinz sauce or whatever else they make if they refuse to steal their doctors? I find that pretty hard to believe. So Luxembourg or New Zealand are required to steal Indian engineers in order to get masala? No. Open New Zealand doesn’t accept anyone and I doubt Luxembourg has the room.
However, that no one respects (any) U.K. minister and ignores them I can heartily believe.November 27, 2017 at 7:22 pm #37316
I do not think that Bitcoin has reached the bubble stage yet. The main reason driving its’ value is as a store of wealth.
The world is moving towards the banning of cash. Money will have to be stored in a bank. If the bank goes bust then some or all of ‘your’ money will be used to pay off the bank’s gambling debts. Gold is traditionally used but the price is heavily manipulated, which leaves Bitcoin.
Also Bitcoin is popular in countries where the local currency is destroyed, like Venezuela and Zimbabwe. I read that the Greek government contemplated replacing Euros in Greek bank accounts with Bitcoin overnight. I presume to try and circumvent the act of war by the ECB.
It is also popular when countries feel threatened, such as Japan [North Korea] and Iran [Possible US sanctions]. It is also used to bypass capital controls [China].
It is now being viewed as an investment vehicle so may enter a bubble phase. I remember an article saying that Bicoin will crash but may reach 150,000 dollars first!November 28, 2017 at 1:52 am #37319
“Happy Birthday to Anders Celsius, born on this day in 1701. He died in 1744 aged 42, although his great rival Fahrenheit thought he was 108.”
Very clever and very funny, good one; but it will be lost to most Usians who just can’t get on board with metrics, pity…
One of my favorite movies is Celsius 233…November 28, 2017 at 2:39 am #37320
A few tidbits, hard won. First, according to X22 Report, the new currency that will be introduced to replace the dollar will not be able to compete with Bitcoin unless it has “something” going for it to generate confidence. As there will be no alternative, that “something” will be gold backing. So gold will be revalued upward — worldwide — and the predictions mostly hover around $10K / Troy oz, or more. Silver is nice for making coins, but it will not serve as a backing for currencies. I will caution you, however. The rationale for replacing the dollar is predicated on the notion that loss of international reserve currency status will cause a flood of dollars to return to the U.S, and this will presumably cause hyperinflation. Personally, I doubt that will happen rapidly, if at all, and because deflation strengthens the dollar, it’s quite possible the dollar will never require replacement. So don’t hold your breath for a new currency backed by gold. Also, if history is any guide, the first currency to replace the dollar could easily fail within a few years after the replacement. Think Lincoln’s
greenbacks, but there are other examples.
Second, the energy consumed by Bitcoin mining is a red herring. Bitcoin will likely be streamlined eventually by the Lightning Network. “Proof of work” mining could yield to “proof of stake,” as well.
Third, something like 0.3% or 0.03% of the world’s population even knows what Bitcoin is. The price rise is not due to speculation so much as it’s due to increasing confidence. Some exchanges and wallets have been hacked. Chalk it up to growing pains. Bitcoin has never been hacked. As the world catches on, the price will continue to skyrocket.
Fourth, look at the chart. Bitcoin has averaged about a $1,000 gain each and every month for the last seven months. As Bitcoin becomes the currency of choice around the globe, it will fly past $150,000 without blinking.
Fifth, and you probably know this already, Bitcoin is divisible to eight decimal places. A one-hundred-millionth of a Bitcoin is called a “Satoshi.” It will eventually work perfectly for small purchases, especially if one Bitcoin is worth a million dollars. The price of Bitcoin will flatten in the future, i.e. the s-curve will glide into a purchasing power resembling today’s million dollars, plus or minus any number of hundreds of thousands. But here’s the beauty. The last people to convert dollars (or any other currency) to Bitcoin will not lose purchasing power. Even if they spend a million dollars for one Bitcoin at that point, their purchasing power will not be reduced by the conversion.
Finally, some people think criminality (e.g. money laundering, ransoms, bribes) gave Bitcoin its start. This is obviously untrue. Bitcoin wasn’t worth much for years. Somebody is said to have spent 10,000 Bitcoin for two pizzas in the early days. How much money can one launder into such a worthless currency?
Note: it’s certainly possible that other cryptocurrencies could displace Bitcoin along the way.
Personally, I think nearly everybody has the definition of money wrong. Money is barter. Yes, it’s portable, fungible, and a store of value. But it’s merely an intermediate form of barter. Instead of trading your cattle for a new house, you’re trading your cattle for clamshells first, and then trading the clamshells for a house. I can’t understand why people don’t see that. If I want cattle, but want to sell my house, and if you, a cattle baron, want my house, then houses and cattle are money. There is no reason that dollars, gold, silver, Bitcoin and clamshells can’t all serve as money (i.e. barter) simultaneously. Especially after banks, brokerages and governments get starved OUT OF BUSINESS by distributed ledger technologies (i.e. blockchain technologies like Bitcoin).
There is much more to say, but that’s enough encouragement for now. Bitcoin is less than $10K now. Or you can wait a year and pay a hell of a lot more. But even if you wait until it’s a $million, you’ll have lost nothing except the opportunity to become rich along the way.November 28, 2017 at 3:16 am #37321
It’s = a contraction of “it is” or “it was.” The apostrophe replaces the “i” in the word “is” or the “wa” in the word “was.” The only time an apostrophe should ever appear in that particular three-letter word is when it’s used as a contraction.
The possessive sense is written “its” and has no apostrophe.
Its’ = not a word.
“Myself” cannot be used self-referentially unless your sentence has already been self-referential. For instance, “I hurt myself.” It’s becoming increasingly popular to use “myself” in place of “I” or “me.” Instead of “three people in the room, including me,” I read “three people in the room, including myself.” Maybe “myself” makes the speaker feel more important than if he said “me,” but he’s shown his lack of education.
There are other bumps in the road that readers have to contend with, but those two are the ones that annoy me the most. There is a difference between a language evolving and a language trashed. THEY ARE SUPPOSED TO TEACH THIS SHIT IN JUNIOR HIGH, but public schools … hey, don’t get me started.November 28, 2017 at 3:31 am #37322
Mercy; I wish people would read David Graeber’s Debt; the First 5,000 Years.
Or Michael Hudson; Bill Black or Steve Keen.
Barter is a myth.
Bit coin is a Ponzi scheme, IMO. It is most assuredly not a store of value or wealth.
Fiat is not a store of value; it’s a promise/agreement.
Gold and silver are historic stores of value.November 28, 2017 at 6:41 am #37323
Addendum; barter is a myth. I should add:
People barter with one another, yes, that’s true on an individual basis.
However, in Graeber’s research, he found that as a viable economic model; it’s a myth; didn’t happen.
Graeber attributes this myth to Adam Smith in his writings.November 29, 2017 at 1:34 am #37342
Strangely, the first money is not an asset but a debt: Lend me your bow and I’ll give you a rabbit. Because, why on earth would you need abstract money? A town of 200 only has you and your cousins. You eat at each other’s houses. To transact in “money” seems rather gauche, doesn’t it?
Yes you’d barter further out because where would you get money, the ATM? Certainly the natives here didn’t bother with it; there were gold nuggets in the streams they never bothered to pick up. Calling every small, standard trade good like beads or copper “money” is pushing the definition a bit, isn’t it? Fur and tobacco? Why not needles, gunpowder, cloth, toys, tinware? Oh wait, that’s everything, isn’t it? In any case, money was neither used, desired, nor missed in native America. Might look into it: it seemed to serve them well.November 29, 2017 at 3:51 am #37346
” Britain Must Accept High Immigration Or Forget Trade Deal With India (BI) ”
Actually, there is a simple reposte that the UK can play. I suspect there are at least 1 million undocumented Indians in the UK already. A study of internet usage would reveal something close to the actual number. The UK can propose to send them home.
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