Inflation tax

[price777999]

I have no idea, YOU are the one who raised the point so it's up to you to provide the facts. How much energy is used mining gold worldwide and how many people die?

The answer is obvious , you are avoiding the question.


However, this is the more interesting question I'd like you to answer:

The U.K needs to import energy because it uses more than it can produce. It has to import many things in fact, from other countries.

My question is this: Why would a country like Norway export Oil to the UK in exchange for bitcoins when Norway can mine its own bitcoins?

Yes, why would we import oil when we have our own ? ...we could use the energy from oil to develop wave power and solar.
Do you really believe it is impossible for the UK to be self sufficient ?

 

[Atilla]

Is Inflation the most efficient form of tax ?

For example we print money to build schools ,hospitals,roads ,etc.Then we have a tax free , free market economy, eliminating the need for accountants and therefor being more efficient .

Is this not what already is the case with every government currently in debt?

The only variance being we do have accountants and tax so we have some level of accountability to lend credibility to the system.

You are right inflation erodes value for savers and can be perceived as tax by them.

It favours producers as materials bought in one period 'T' can be sold for a greater sum in period T+1 with value added...

It favours investors over savers as it redistributes income. So it is a form of tax for sure; taking from those who have plenty to making it available to those who don't because they spent it.


Whether it is efficient form of taxation the answer is a clear resounding YES as there is nill cost of collection or calculation.

Is it equitable? NO clearly not.

However, a theoretical answer is not necessarily a practical one in the real world??? Has some nasty side effects too.

Good thought provoking question.

 

[Purple Brain]

Look at the energy that goes into mining bitcoin.

Zero as of today.

 

[new_trader]

The answer is obvious , you are avoiding the question.

How is it obvious? Explain to me how much power is used mining gold and how much power is being used by computers all around the word to transact bitcoins and to mine bitcoins?

Don't ask a question if you can't provide the facts.

Virtual Bitcoin Mining Is a Real-World Environmental Disaster - Bloomberg
Virtual Bitcoin Mining Is a Real-World Environmental Disaster

Here's a puzzle: How can a virtual currency, existing in digital form on computer hard drives, demand real power and real fuel, and have real-world environmental costs? If you're struggling to think of an answer, welcome to the world of "Bitcoin mining."

Yes, why would we import oil when we have our own ? ...we could use the energy from oil to develop wave power and solar.
Do you really believe it is impossible for the UK to be self sufficient ?

So your answer is YES? Norway would accept Bitcoins as payment for its oil even though it can mine its own bitcoins?

 

[Jack o'Clubs]

I’ve got a lot of sympathy for the gold-as-antidote-to-fiat-money view and having had a small weighting to gold have been running through the arguments for moving much larger after the price drop. But, the imbalance between supply and demand worries me: global supply is about 4,000 tonnes annually. Jewellery and industrial demand is about 2,700 tonnes. So you need 1,300 tonnes a year of investment demand just to keep prices stable – I just find that impossible to predict with confidence. Of course it’s a moving target as if price comes down, so will supply (fully allocated costs of production are around the current spot price, so you’d expect some mines to be mothballed), but marginal cost is much lower ($800?) and to the extent that most gold miners have healthy balance sheets, who is going to be the one to blink first and reduce production? And as the price falls, the dumb money investment buyers will start to back away as they lose confidence in the whole ‘store of value’ argument. So after putting all that together my conclusion is… to pretty much stick where I am with a small weighting, but no way to bet the house. In fact asset allocation at the current time is by far the most interesting discussion in investing / trading, I’m surprised there isn’t at least some interest in it in these boards. Maybe I’ll start a thread…

 

[price777999]

So your answer is YES? Norway would accept Bitcoins as payment for its oil even though it can mine its own bitcoins?

Yes , if two country's were competing for the same limited Bitcoin I supose they would also trade with it .

Why does Norway sell oil for worthless paper when it can print its own worthless paper ?

Would a gold mining company accept gold as a payment ?

 

[new_trader]

Yes , if two country's were competing for the same limited Bitcoin I supose they would also trade with it .

How does a country buy oil from Norway once there are no more Bitcoins left to mine?

Eg/ Japan needs to import much more oil than it can produce to satisfy its own requirements.

Why does Norway sell oil for worthless paper when it can print its own worthless paper ?

You tell me. Why does Norway accept paper money in exchange for its Oil?

I don't know why you keep trying to promote bitcoins, this thread was about your idea that the inflation tax was efficient. Have you changed your mind?

How much money have you invested in bitcoins?

 

[price777999]

How does a country buy oil from Norway once there are no more Bitcoins left to mine?

The country would create its own currency and the market would decide what it is worth.

I don't know why you keep trying to promote bitcoins, this thread was about your idea that the inflation tax was efficient. Have you changed your mind?

I'm not promoting anything mate ....was supposed to be a discussion .

I havent changed my mind , my opening question still stands ...whats your idea for the optimal tax system and currency ?

 

[new_trader]

The country would create its own currency and the market would decide what it is worth.

So, a country goes from fiat money, to bitcoins and back to fiat money?

What was the point of using bitcoins in the first place?

Do you have any idea what you are talking about?

 

[price777999]

So, a country goes from fiat money, to bitcoins and back to fiat money?

What was the point of using bitcoins in the first place?

Do you have any idea what you are talking about?

For **** sake ....can we just stick to the thread question

 

[price777999]

Is this not what already is the case with every government currently in debt?

I suppose so, but the new currency doesn't get fed in from the bottom up and there is massive waste .

The only variance being we do have accountants and tax so we have some level of accountability to lend credibility to the system.

I only see accounting as waste , I don't see how wasting energy can lend accountability to a system ?

Whether it is efficient form of taxation the answer is a clear resounding YES as there is nill cost of collection or calculation.

Is it equitable? NO clearly not.

Why not ?

Good thought provoking question.

Cheers

 

[new_trader]

Dealers Driving Mercedes Hail Zimbabwe Dollar’s Demise
Dealers Driving Mercedes Hail Zimbabwe Dollar

While the country is still mired in political crisis 33 years into President Robert Mugabe’s rule, the move helped end an economic collapse that decimated the country’s tobacco and rose export industries and shrank the economy by 40 percent between 2000 and 2007, according to an IMF estimate.

It’s an “incomparable” improvement from trading before Zimbabwe dollar was abolished, said Mills, whose company competes with OK Zimbabwe Ltd. to be the country’s biggest supermarket chain, said. “Back then shelves were empty and retail was at a standstill.”

The currency reform has brought some semblance of stability to a country bearing the scars of Mugabe’s economic mismanagement. Zimbabwe’s central bank began printing money in 2006 to pay a debt to the IMF to stave off expulsion and continued the practice to meet expenses including infrastructure payments.

Despite all the REAL WORLD experiences to the contrary, there are still dunces in this thread that think inflation is good.

 

[price777999]

Dealers Driving Mercedes Hail Zimbabwe Dollar’s Demise
Dealers Driving Mercedes Hail Zimbabwe Dollar











Despite all the REAL WORLD experiences to the contrary, there are still dunces in this thread that think inflation is good.

**** off you ****

 

[Atilla]

I suppose so, but the new currency doesn't get fed in from the bottom up and there is massive waste .

Yes it does. Benefits get paid directly into peoples accounts to spend. Budgets are allocated to departments to spend. What do you mean by bottom up? Where is the bottom?

I only see accounting as waste , I don't see how wasting energy can lend accountability to a system ?

Energy is a physical term. You mean accounting fulfilling a function counting and being paid a wage for their time - cost. So how do you know what the numbers associated with any commodity; service or product is?

If you want to buy eggs produced by my chickens and I say to you it is worth £10 do you not stop to consider if it is fair value and how much you will have left for anything else. You are accounting however, you may perceive it. Accounting/budgeting must be done otherwise how can any prices get set.


Why not ?

Because inflation is not fair on savers who lose value of their savings to

Cheers

 

[counter_violent]

Just read the articles and inwardly digest.
There are also links to "money printing" and links to some of the countries that inflation and hyperinflation have affected with disastrous consequences. Germany, Argentina, Zimbabwe etc.

Inflation should be seen as the sworn enemy.

This was already established in post No6 after i'd stopped laughing in post No2.

I can't understand why your not getting it !

 

[new_trader]

**** off you ****

People usually get bitter and angry when their beautiful theory is ruined by ugly FACTS.

 

[price777999]

People usually get bitter and angry when their beautiful theory is ruined by ugly FACTS.

still haven't heard your great theory

 

[price777999]

Yea but savers have to pay tax anyway so just scrap the tax and use the inflation ,same difference ?

 

[new_trader]

still haven't heard your great theory

Are you for real???


This is the Twilight Zone...it must be....

 

[price777999]

Are you for real???


This is the Twilight Zone...it must be....

come on then, whats the most efficient tax system ?