Quote from: Sweft on May 02, 2013, 10:23:48 PM

I think the inflation people have a trouble with is fiat fractional reserve lending.

Why?

Because if you fractionally lend money, that original money that was lent should in theory be distinguished from debt by having some essence. The issue is with fiat the original money and the debt become indistinguishable when they monetize the debt by printing money.

If you lend based on gold, that original loan is still owed to you, so by default every loan that was fractionally created from gold is still the very same original gold. Therefore the money is distinguished from the debt because it must be returned to the lender since you cannot counterfeit it (print).

The metal smiths who originally invented "counterfeit reserve receipt-token fiat-bankstering" were enabled to do so because gold and silver were too fungible, risky and bulky to handle and secure in the marketplace. This technologically-harder to counterfeit stamped-coin "reserve fiat bankstering" actually began with cheaper "private" coinages all much like the Levitican's "Temple Shekels" whose intrinsic values and utility values actually were token for much-larger exchange valued assets as determined by the "fiat" of the "money-changers" currency exchanges. Bronze age coins were the antecedents of (far far cheaper and actually easier to counterfeit) paper phony-receipt-note "currencies" that came along much later.

It was Julius Caesar in 48 BC who first set up a "central" publicly owned for public profit "counterfeit reserve receipt-token fiat-bankstering" system for Rome that put the smiths out of business, making a single, common public currency standard and plentiful to facilitate commerce and industry, and (by public lending) to thus finance public projects free of armed-marauding public-shakedown "taxations". This was why he was assassinated.

The simple fact is that the "original debt" in "reserved" gold always was, is and always becomes continuously more and more irrelevant. Sure gold has an inescapable "exchange value" (due solely to it's ever-increasing rarity) but it's intrinsic and utilitarian values are actually squat, save as a decorative or luxury plating metal. It never or very, very seldom if ever needs to be "paid back", because that is why the pretty junk was all laboriously and hazardously carted-over and dumped-off into a "reserve" in the first place! It ends up there because nobody can bear with the nasty bothers of dealing with it.

You see many people with wheelbarrows full of gold out car shopping? Or truckloads of gold looking for a new house? As a "money" gold has been practically obsolete for well over 3 hundred years.

Reserve bankstering works and has always worked just fine, because a Medium of Labour Exchange is actually backed by the labours that it's earning has, or spending will, represent, ALONE!

In other words, it (a "money") is simply an Exchange Tokenage representative of Labour Values performed or performable, period. It does not ALSO have to be anything else that it is not!

As Julius Caesar, Henry 1st, George Washington and Abe Lincoln (and JFK might also have) proved all you need is a good token supply that is publicly owned, issued and rented-out, who's (hopefully growing) supply keeps up with (hopefully growing) labour force quality and size demands, in order to have perfectly fine "money" and a perfectly fine Freed Market economy (freed from counterfeit private gold-receipt slavery to private gold-Pharaohs)

Quote from: Sweft on May 02, 2013, 10:23:48 PM

The same applies with bitcoin fractional lending as does with gold. Pre-programmed inflation in bitcoin should behave nothing like fiat inflation, because the debt cannot be monetized. The debt must be returned to the lender.

And if you notice throughout history gold has inflated and will continue to inflate, but since gold mining requires energy, as bitcoin mining does, the inflation is beneficial to its value because it allows for a larger adoption base and solves the first adopter problem.

Inflation is not the enemy of bitcoin.

A Bitcoin is a fiat digital high security internet game casino gambling token of excellent utilitarian value and marginal intrinsic value but it has no exchange value AT ALL. It's inflationary and deflationary "assigned fiat exchange value" properties have nothing whatsoever to do with the supply of them, nor the growth or shrinkage of that supply, and they never ever will! Mining Bitcoins merely finances it's transaction network, period.

A Bitcoin is an "deregulated" Over the Counter derivative. The "exchange-value" (price) inflation and deflation of Fiat Bitcoins has squat to do with any "monetary supply" of them and (foreseeably) never, ever will!

Penny Stock-Market (pretend-exchanges) speculators and their greedy and mischievous fiat-antics capriciously determine the latest (stale) fiat exchange-value of the last fiat Bitcoin that past their way.

The actual "price" of any given Bitcoin remains forever unknown and unknowable until after it has been re-sold (re-exchange valued) to the next guy, in the future.

A Bitcoin functions exactly in much the same way as a "funded" Credit Default Swap (fCDS). You fund it's former owner's "loss" (costs) on it, and the next owner funds yours.

A Bitcoin is a commercial "over the counter (OTC) derivative" of the current-past value and future possible values of itself and it's network, which are only (at best) completely deregulated commercial resources, and neither "commodity futures" nor "securities" as per the CFMA of 2000. This is why, with it's "market" exchange-value changing every two seconds, it is useless as a "money" because you need an hour to accept and/or spend it. It's exchange-values are really only very useful as a delayed-exchange "funding" medium.

The intrinsic and utility values of the "futures derivative swap-contract token" no matter how attractive or quantitatively prearranged, are materially too small to be any more than a very, very minor factor in it's (inflationary or deflationary) exchange-value (aka price)

Buying a Bitcoin futures derivative swap-contract token is simply gambling that the value of it's current "fiat" exchange-value will be close to or less than the value of it's future "fiat" exchange-value.

Yes inflation (and deflation) are ALWAYS everybody's and everything's enemy!