tag:blogger.com,1999:blog-5061889834421679008.post2222450486899600073..comments2014-02-28T10:51:55.737+00:00Comments on Injin's Alternative Universe: Financial system basicsInjinhttp://www.blogger.com/profile/17344218283179690569noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-5061889834421679008.post-28367210141930515722008-09-05T13:35:00.000+01:002008-09-05T13:35:00.000+01:00Hi Injin,I've read your comments for many months o...Hi Injin,<BR/><BR/>I've read your comments for many months on HousePriceCrash. Please keep up with the blog and keep talking. <BR/><BR/>I'd hate to see the people on HPC who cannot agree with you get you so angry you leave. <BR/><BR/>Please keep posting. For the sake of the Truth.<BR/><BR/>Kind Regards<BR/><BR/>QAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-18649454320583874682008-08-12T10:49:00.000+01:002008-08-12T10:49:00.000+01:00Bankers don't sell more, they loan the same thing ...Bankers don't sell more, they loan the same thing more often. Lending the same pound or dollar to 97 different people doesn't make any more dollars. <BR/><BR/>It does dramatically increase demand for that dollar though - 97 people need to get hold of it to repay their "debts."<BR/><BR/>As people default, demand drops off. Someone who loses their home and goes bankrupt suddenly doesn't need thousands of pounds or dollars a month to make repayments. The only reason someone would default in this way is if their assets were worth less than the money they owed, of course. <BR/><BR/>As people repay, demand drops off. A man who repays his credit cards and loans doesn't need money as much. <BR/><BR/>Saving then results instead.<BR/><BR/>With money, increased velocity is deflationary AND lowers prices.Injinhttps://www.blogger.com/profile/17344218283179690569noreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-67497128982636206722008-08-12T04:52:00.000+01:002008-08-12T04:52:00.000+01:00I'm not so sure that increased velocity always lea...I'm not so sure that increased velocity always leads to inflation.<BR/><BR/>for example, the airlines, which have been benefiting from increased velocity lately, are now suffering from lower sales/lower velocity.<BR/><BR/>their answer is that they have to RAISE prices, since when they always had full flights, they needed less per passenger, but as things slow down, they will have to increase their margins per head.<BR/><BR/>I understand the argument that increased velocity causes increased demand, which SHOULD raise prices, but you also have to factor in commoditisation of product that is allowed and efficiencies of scale that come with the higher numbers of sales.<BR/><BR/>the more of a thing you sell, usually the cheaper it becomes.<BR/><BR/>so increased velocity should lower prices in some cases.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-81207662716438219332008-08-11T01:30:00.000+01:002008-08-11T01:30:00.000+01:00Legal tender distinction is correct, I'll amend go...Legal tender distinction is correct, I'll amend going forward but leave the existing posts as is. <BR/><BR/>Thanks for the correction. <BR/><BR/>----------------------<BR/><BR/>It does increase velocity, but the balance between scaring people into using the paper and not doing too much so it retains it's value is a tricky one.<BR/><BR/>It's more important to scare the right people - as the bankers are currently finding out, running the scam on people with nothing and no wit to make anything costs them more than they can take in.<BR/><BR/><BR/><BR/><BR/>Thanks for the comments :)Injinhttps://www.blogger.com/profile/17344218283179690569noreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-86326528264895655992008-08-10T20:32:00.000+01:002008-08-10T20:32:00.000+01:00"I should have also mentioned fines in my post, I ..."I should have also mentioned fines in my post, I might amend it later. Basically fines for littering, smoking in a pub, watching TV without a licence all boost the value of the currency,"<BR/><BR/>Wouldn't this potentially increase circulation velocity thus causing inflation and erosion of currency value?<BR/><BR/>Nice blog by the way, should be some interesting discussionsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-23579026213407610512008-08-10T16:45:00.000+01:002008-08-10T16:45:00.000+01:00legal tender isn't the word you are looking for, i...legal tender isn't the word you are looking for, it's currency.<BR/><BR/>you have to pay taxes in the national currency, different forms of of the currency may or may not be valid legal tender for paying those taxes.<BR/><BR/>otherwise, good luck with the blog.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-42419266884122120772008-08-10T10:05:00.000+01:002008-08-10T10:05:00.000+01:00The fines and licences do also perform the functio...The fines and licences do also perform the function of punishment and regulation - it's a definite win/win for the courts and government. <BR/><BR/>One problem is that almost everyone sees some regulation, law and punishment as a required part of civilised life and so the heavily armed gang has latched onto this idea and subverted it for various reasons. <BR/><BR/>In one o fmy fuure blogs I'll be describing how fiat money is actually designed to stp trade, to cease action and make the easy difficult. <BR/><BR/>Peace, <BR/><BR/>InjinInjinhttps://www.blogger.com/profile/17344218283179690569noreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-91545330386701151602008-08-09T16:02:00.000+01:002008-08-09T16:02:00.000+01:00I see. Insurance companies would be involved in mo...I see. Insurance companies would be involved in most cases but the outcome would be to offer an amount of money equivalent to the item in question.<BR/><BR/>Never thought of fines being a tool for increasing currency value, not sure about that one, but I do see how they encourage the idea of force in relation to the 'heavily armed gang'. All part of the same process? <BR/><BR/>Mac.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-62135446507168547192008-08-08T15:00:00.000+01:002008-08-08T15:00:00.000+01:00That would guess on what they had lost, I would im...That would guess on what they had lost, I would imaghine. <BR/><BR/>If you had totalled my car, I might want a replacement car delivered, but the court system allows you to hand me pieces of paper instead.This lead to further demand for fiat that otherwise wouldn't be there. Equally I might want paintings, gold etc if they had been lost or damaged.<BR/><BR/>The ability to give money or a more generally accepted good in place of some rare or even unique item IS useful because not all items can be replaced, but the blanket allowance gives the fiat paper another source of demand and therefore value it otherwise would not have.<BR/><BR/>A ford escort is easy to replace, a morgan aero isn't a piccasso is hard to replace, a picasso print isn't.<BR/><BR/>I should have also mentioned fines in my post, I might amend it later. Basically fines for littering, smoking in a pub, watching TV without a licence all boost the value of the currency, which might explain the incredible numbers of new laws passed in the last ten years that lead to licencing or fines, eh?Injinhttps://www.blogger.com/profile/17344218283179690569noreply@blogger.comtag:blogger.com,1999:blog-5061889834421679008.post-30690594333637823832008-08-08T08:43:00.000+01:002008-08-08T08:43:00.000+01:00Injin,Nice to see you got your own blog, I'll be i...Injin,<BR/><BR/>Nice to see you got your own blog, I'll be interested to see how it develops.<BR/><BR/>Can you clarify this for me, it was the only section I didn't get on the first read, and am still unsure;<BR/><BR/>The second thing you can do with the paper is to cancel debts as far as the heavily armed gang is concerned. They have a court system where one of their number settles disputes by using the gangs might on one party in a disagreement (usually the one who has least to offer the gang.) If you offer the gangleader pictures to pay a debt, then the courts will back you up even if the other person wants some other substance instead. All legal means of restitution are lost if the paper currency is refused.<BR/><BR/>Ok, the gangleader pictures are the paper you refer to earlier in the paragraph? If so, what other substance would the other person want?<BR/><BR/>Mac.Anonymousnoreply@blogger.com