Re: Is there room for a State Run Cryptocurrency?

Did you forget about your own claims dude? I was not talking about privatizing profits, which you obviously failed to see, but was talking about just one particular example of socializing losses, i.e. socializing bank debts. Nevertheless, I'm pleased that you finally looked at what Google says about this notion.

Your claim was that if FDIC fund was insufficient the Fed would print money to lend them. This is already not true. Credit comes from the Treasury who can not expand money supply

Even IF this was true, then its the FED that holds the debt not the public.

IF the FDIC is borrowing from the public then the public is holding debt making it an asset for the public (not a liability).

Debts & losses are not same things. Loss refers to income. Debt refers to asset / liability. You can't use these terms interchangeably unless you don't understand accounting

Please, if you have a point then explain yourself instead of giving straw men

Haven't I already explained it that the Fed would print money for the FDIC after Congress would pass a corresponding act in case there is a need for such a legislation? Where did you get that the FDIC would be borrowing from the public? Please show me that part. Debts incur losses (if not paid indeed), they are just the two sides of the same coin. And if loss refers to income (according to your words), what the heck you began talking about losses when we were talking about debts?

If it comes down from it the FDIC would need to borrow money from the government via it's line of credit at the Treasury. Since the government is run "by the people and for the people" and since the public pays taxes to the government, the FDIC would essentially be borrowing from the public.

So, in this case, the losses incurred from the uncollectible debts (bank defaults) will be paid by ordinary people directly. Now try to explain this to that guy who is ready to admit that I can't understand his explanations, but who still tries to make me explain to him how socializing debts (losses) works.