Blockchain Coinjoin
Answers from many are mine the bitcoin post reveals a powerful tendency to underestimate the undesirable events of deflation for the social economy. This tendency to underestimate the harmful effects of deflation has implications that go beyond the bitcoin debate in general. It is known that abroad the failure of the european central bank (ecb) to act in the face of deflationary forces has revealed this same type of misunderstanding, as many commentators do not understand that deflation is a very serious problem and that the ecb's lack of weapons against it represents a great weakness. In such a post, i return to the problem of deflation in a gold standard-like monetary system (e.G. Bitcoin or, naturally, in the eurozone itself), but i conclude that, paradoxically, bitcoin technology, if adapted appropriately, can be profitable used in the eurozone as a weapon against deflation and a means of providing much-needed freedom of movement for financially struggling eurozone member states.
Can deflation really be a problem?
In a recent debate, i ran into the argument that deflation is a godsend. “Poor people want more loyal prices,” i was told, “and know-how fails to understand why ‘elites’ like you oppose such commercials.” Of course, men and women, especially people who know how to make ends meet, prefer more affordable prices to higher prices, all other things being the same. But under the heavy shadow of deflation, other things are not equal. Deflation is indiscriminate. As soon as he establishes it, all prices are reduced, in particular the price of labor. In fact, wages have a tradition of falling more than the prices of other commodities during deflation, leaving the weak poorer. Worse, deflation reduces investment, which in turn increases unemployment.
Some readers have trouble seeing why wages should fall faster than prices and why vacancies shrink when they fall prices. To see if this is always true, compare the degree of influence of a corporation (for example, walmart or mercedes benz) on the profits of workers. Because buyers are no longer willing to shell out at the same prices they used to be, the corporation can limit the fall in the value of its goods by limiting output. Its price will still fall, but not as much as if the company failed to influence the cost by limiting supply. Conversely, blue-collar workers do not have comparable power to limit the supply of their efforts to stop their wages from falling. The result is twofold: as corporations restrict production (to minimize the rate at which prices fall), their demand for labor falls, resulting in further rate cuts accompanied by layoffs, which, in an endless cycle of recession, further reduce the demand for labor. . Of goods.
In addition, during the fall in prices, manufacturers face time constraints. Assuming that there is a time lag between ordering raw materials and delivering final products to retail chains, deflation means that firms buy their inputs when average prices were higher compared to their level at the stage of shipment of finished moonshine. Thus, the higher the deflation rate, the lower the rate of return and the more assortment of companies that are forced to either lay off movers or close completely.
Finally, as prices fall, consumers from a number of savers have every reason to put off purchasing durable products (such as household appliances or cars), because they know that now, with the saved bucks or euros, visitors will be able to buy a much larger (or better model) of these goods, the more side effects are waiting. However, this is terrible for manufacturers as well as for their commercial and suppliers.
A reader challenged me on this last point that falling prices are a fact of living, and this does not seem to be a problem: “i can come up with a lot of products and circumstances,” he wrote to any economy right now, if you put aside a fur coat, you have more “for the ordered dollar.” Certainly. However, said price fall is not a problem unless all prices fall at the same time. The benefit of patience in the states today is actively looking for the best deal in a trade where the information is imperfect. Deflation, on the other hand, rewards the patient simply for patience, but does not count as a reward for expensive exploratory activity. In the presence of deflation, everyone benefits from waiting, and aggregate demand thus collapses (punishing each of us).
Unless, in such deflationary conditions, monetary policy is loosened to stop average prices from falling, a massive catastrophe will ensue. Guaranteed. This was a terrible shortcoming of the gold standard in the middle of the war. This is bitcoin's achilles heel today, and indeed remains a eurozone design flaw.
Bitcoin and the euro
Bitcoin is a rigid version of the gold standard in which the money supply is fixed for extension at the preliminary level. A certain speed and eventually reach the maximum possible number of bitcoins, which will remain fixed forever. The eurozone, on the other hand, is much faster than the original gold standard. The main difference from bitcoin is that there is no fixed upper limit on the number of euros because private banks in the euro area are subsidized by member states (through having deposit insurance and the promise of bailouts if needed) to get a loan. Lines (based on the principle of partial redundancy). In other words, depending on the cheerfulness of the banks and telephone consumers, in other words, because of the extent to which they are optimistic), the banking systems of the euro area effectively mint the euro. Indeed, private banks are responsible for more than 90% of the euro money supply.
While this is the key difference between bitcoin and the euro, they are similar in a small respect: power to increase the money supply during deflation, in the eurozone the existing monetary authorities are limited by the ecb's charter in such a way that it does not Cryptocurrency Anonymization allow them to expand the money supply during deflation. At the moment of european incidents, when interest charges are practically at bottom zero and inflation has turned negative, the ecb is not allowed (for institutional and political reasons) to pursue an expansionary monetary policy through quantitative easing. What is the use of monetary authorities in a monetary union if the young ladies are not able to increase the money supply in response to falling prices? In this respect, the eurozone is no different from bitcoin, not to mention bitcoin's zero transaction costs or its new-age appeal. Governments on the periphery of europe are suffocating in a gold standard-like monetary union that is tossed by the winds of recession and outright deflation. Their economies are desperate for more liquidity and a breather from austerity. The next problem is that the european leadership refuses to even enter into a rational discussion about the institutional reforms that could make the eurozone viable again. The point is, can the peripheral countries do something to give themselves the opportunity to breathe easy and act as a trump card that will make berlin, frankfurt and brussels take notice?
The answer is yes: they can implement their own payment system backed by future taxes and denominated in euros. Let's say more, they are able to use an algorithm similar to bitcoin to make the system transparent, powerful and transaction-free. Let's call this system ft-coin; where ft means… future taxes.
Ft-coin can work like this:
You pay, say, 1000 euros to buy 1 ft-coin off the internet - the site of the national treasury (spain, italy, ireland, etc. Will dispose of the individual ft coin markets submitted) according to the agreement that obliges the national treasury: (a) to redeem your ft coin for 1000 euros at any time or (b) to accept your ft-coin two years after its release as payment, which pays off, say, 1500 euros in taxes.Each ft-coin has a timestamp, i.E. Its code contains the issue time and can be used to verify that its application is not used for tax repayment before the expiration of 2 years.Each year (after the system is running; at least two years) (since taxpayers use them two years after the disclosure of the scheme to pay taxes) on the understanding that the nominal value of the total number of ft-coins in circulation is not higher than a certain percentage of gdp (for example, 10% of nominal gdp, so that there is no danger that , if all ft coins are redeemed at the same time, the government will be tax-free for this year).
After owning ft-coin, you will have a great chance to either store the page in your ft-coin e-wallet, or exchange it. To ensure that the system is fully transparent and transactions are completely free, ft-coin can be run by an algorithm similar to bitcoin, developed and controlled by an independent non-governmental national body.As with bitcoin, the total amount of ft-coins is fixed in advance, at least to a variable not controlled by the government (i.E. Coins) completely controlled by the ft-coin user community using the blockchain created by the infamous mr. Nakamoto.
Since ft-coin will soon "mature" (i.E. Reach the two-year "age"), the demand for it will obviously increase from the point of view of people who do not own ft-coins of this issue (since this can help reduce their current taxes significantly). An owner of ft-coins with an equivalent tax liability would have no reason to implement them (since they would want to use them themselves to pay off their personal taxes), but anyone who "stocked up" ft- coins (up to an amount exceeding what they are interested in paying taxes), as an alternative to investing in a bank branch or on an exchange, will sell; you can set out to buy freshly minted ft-coins.
The big advantage of this scheme is hidden in this page creates:
A source of liquidity for the government, which are located outside the bond markets, where banks are not involved and outside of any redundant procedures imposed by brussels or various troikasnational issuance of the euro, which is perfectly legal in terms of eu treaties, and which can be used to increase benefits for the mostmost famousmost popularmost famous the most common the most common weak people or, realistically as seed funding for some much needed public worksmechanism to allow taxpayers to reduce their intertemporal tax billsa free and perfectly transparent payment outside the banking system, which is jointly observed by all citizens and non-citizens) participating here.
While the most struggling eurozone governments are enjoying a much-needed degree of fiscal freedom, taxpayers have been given the opportunity to significantly reduce their long-term tax burden and open up electronic payments in euros bypassing banks. In a time of ultra-low surcharges, high tax costs, and high bank charges, these benefits are not to be laughed at. Above, a liquid new ft-coin market with zero transaction costs and new profit prospects is being created that affects everyone who participates here, through basic tax savings and an official guarantee of convertibility at par.If you have questions regarding where and how to get bitcoin tumbler, you can contact us through our site.
