tag:blogger.com,1999:blog-4490468598422095060.post5049092948371873920..comments2024-03-17T07:55:12.096-07:00Comments on FOFOA: Yo Warren B, you are so OG!FOFOAhttp://www.blogger.com/profile/17152544684132776239noreply@blogger.comBlogger246125tag:blogger.com,1999:blog-4490468598422095060.post-68013349969332829582012-03-03T05:42:04.613-08:002012-03-03T05:42:04.613-08:00Did a post on Buffett recently. Let me know what y...Did a post on Buffett recently. Let me know what you guys think.<br /><br />http://somanyroadsinvesting.blogspot.com/somanyroadsinvestinghttps://www.blogger.com/profile/01188364725931819342noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-80956400684604734252012-02-24T13:00:40.161-08:002012-02-24T13:00:40.161-08:00Uncle Warren doesn't like cash. OK, got it. ...Uncle Warren doesn't like cash. OK, got it. He likes companies. Check. But many of these companies are holding a lot of cash, and those cash positions are at risk. For example, investors were hoping the $100 billion held by Apple would go their way in the form of a dividend check, but it didn't happen. Up until the time of his recent death, Steve Jobs regarded this cash position as Smiddywessonhttps://www.blogger.com/profile/06786759839426563298noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-4686220448039098992012-02-23T21:48:20.721-08:002012-02-23T21:48:20.721-08:00Victor,
Thanks for your replies, I think after re...Victor,<br /><br />Thanks for your replies, I think after reading them, and also after reading Aristotle's mammoth piece in the Hall Discussion <a href="http://www.usagold.com/halldiscussion.html" rel="nofollow">link</a>, I get the fact as to why even a perfectly duration matched system of a metallic standard currency is still a problem.<br /><br />Aristotle: <i>Here's the key factor as Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-16130541547616658542012-02-23T17:10:28.151-08:002012-02-23T17:10:28.151-08:00A New Wealth Transfer Scheme?
I was going to post...<b>A New Wealth Transfer Scheme?</b><br /><br />I was going to post this comment as off topic but then I caught up with this excerpt from the Trail Guide posted by JR:<br /><br /><i>It's a political process that has always had its in-house battles ,,,,, namely portions of society try to circumvent their percentage of lost rights and property by maneuvering the rules (laws) in their favor. Yescostatahttps://www.blogger.com/profile/17932860172715556937noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-9747472381448142822012-02-23T16:43:22.884-08:002012-02-23T16:43:22.884-08:00I have to laugh that you spotted this piece by Buf...I have to laugh that you spotted this piece by Buffet, it was priceless. He is either being completely disingenuous, or he has no clue about the world he has dominated. Is it a delicious admission of ignorance, or another misdirection by a very wealthy scoundrel and master of what used to work? I just have to make one little comment before I finish your article, because, like a good meal, it&#Smiddywessonhttps://www.blogger.com/profile/06786759839426563298noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-86271645061342493072012-02-23T16:26:17.717-08:002012-02-23T16:26:17.717-08:00comments.comments.Zebedeehttps://www.blogger.com/profile/05115890276589637833noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-4494982422270546382012-02-23T16:02:37.186-08:002012-02-23T16:02:37.186-08:00Finally, in real life, Charlie will open shop and ...Finally, in real life, Charlie will open shop and set up a company that works in the private market, not subject to Sandeep's restrictive banking regulations, and that acts as a broker for private-to-private loans, matching the Alices and the Bobs of this world.<br /><br />The company issues joint credit notes, representing not an individual loan but written against the entire pool of loans Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-59997813006747651402012-02-23T15:53:33.440-08:002012-02-23T15:53:33.440-08:00commentscommentsLDhttps://www.blogger.com/profile/01409097419271248562noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-30871519661206117512012-02-23T15:46:33.424-08:002012-02-23T15:46:33.424-08:00Trail Guide (2/12/2000; 9:52:36MDT - Msg ID:25137)...<b>Trail Guide (2/12/2000; 9:52:36MDT - Msg ID:25137)<br />Reality<br /><br />[...]<br /><br />Human society has from the very beginnings formed tribes and picked sides against each other. When we are not battling nation against nation, we jockey for position within our own groups. Right down to "me and my neighbour against the three houses down the street". As a tribe ,,, as a nation ,JRhttps://www.blogger.com/profile/16345441084565082627noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-2709963664638888982012-02-23T15:45:55.658-08:002012-02-23T15:45:55.658-08:00Sorry, "Sandeep's silver standard runs ou...Sorry, "Sandeep's silver standard runs out of _reserves_".Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-49679448464208310372012-02-23T15:44:49.065-08:002012-02-23T15:44:49.065-08:00Apologies for the million of short postings - I...Apologies for the million of short postings - I'll try to improve, but it won't work.<br /><br />The problem with Sandeep's silver standard is that there are unregulated private contracts involving debt that is denominated in silver.<br /><br />This leads to silver's price being depressed in the market place relative to goods and services.<br /><br />So you have 'silver' (Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-59031445486334477002012-02-23T15:38:13.196-08:002012-02-23T15:38:13.196-08:00One further thought: 'Money' is the concep...One further thought: 'Money' is the concept that Alice owes Bob something in exchange for the Ferrari. This is part of a network of social contracts: Who owes some goods or services to somebody else?<br /><br /><b>Silver</b> is a real asset.<br /><br />A letter of credit or a printed statement of your account is a token that symbolizes 'Money'.<br /><br />A warehouse receipt from Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-5169287433475439512012-02-23T15:36:21.491-08:002012-02-23T15:36:21.491-08:00Remember from Moneyness that the people's mone...<b>Remember from Moneyness that the people's money throughout history has been credit denominated in something. The majority of exchanges up until the invention of paper money were largely on the basis of credit and trust, with accounts later cleared and imbalances settled in metal. In this way, a relatively small and stable monetary base serves a much larger economy. </b><br /><br /><a href=JRhttps://www.blogger.com/profile/16345441084565082627noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-67298603335885274892012-02-23T15:34:03.131-08:002012-02-23T15:34:03.131-08:00I real life, nobody would go to the bank that is r...<i> I real life, nobody would go to the bank that is run by Sandeep - way to complicated. Sandeep would be out of business immediately. </i><br /><br />LOL, Please answer the question: why did banks even come to exist in the first place? <br /><br />And you make it sound "complicated", whereas in reality it is not. Banks arise out of the need of efficient transactions required in the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-9590610763603426452012-02-23T15:29:25.091-08:002012-02-23T15:29:25.091-08:00PS: You see that non-existing silver (the one that...PS: You see that non-existing silver (the one that Alice promises to give to Bob at some time in the future) has bid for a real asset, the Ferrari.<br /><br />So the currency price of silver declines relative to Ferraris. This is just because Bob trusts Alice. That's all that it takes.<br /><br />VictorAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-69939640614007550562012-02-23T15:24:04.858-08:002012-02-23T15:24:04.858-08:00I have two objections: I real life, nobody would g...I have two objections: I real life, nobody would go to the bank that is run by Sandeep - way to complicated. Sandeep would be out of business immediately.<br /><br />Also, in real life, Bob trusts Alice. So why use a bank at all. And no, Bob does not receive payment in full for the car. He receives a letter that Alice will pay him one year down the line plus interest. That's different from Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-10889813394881865082012-02-23T15:07:27.443-08:002012-02-23T15:07:27.443-08:00@Victor -
Of course Alice gets paid in full as so...@Victor -<br /><br />Of course Alice gets paid in full as soon as Bob takes out the loan.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-90966828092934202232012-02-23T15:06:23.140-08:002012-02-23T15:06:23.140-08:00Where is Sandeep? Did he check whether the maturit...<i> Where is Sandeep? Did he check whether the maturities match? Why is Bob accepting the deal? The reason is he trusts Alice. This is enough to make the proposal fail. </i><br /><br />Let me take your own example and explain how I understand such a transaction would work in Sandeep's proposal of a system with matching maturities.<br /><br />Alice is selling a car to Bob, therefore Alice is Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-20167563969840623452012-02-23T14:43:38.865-08:002012-02-23T14:43:38.865-08:00ephemeral reality,
Alice to Bob: Bob, can I buy t...ephemeral reality,<br /><br />Alice to Bob: Bob, can I buy the old Ferrari that you are not using anymore?<br />Bob: Sure, but it is still in good condition and fast as hell - I would request 2000 ounces of silver.<br />Alice: Sure. You know I just got that new job at the dental lab. But first, I have to pay for all the new furniture. After one year, I will be fine, and so can I pay you after oneAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-43621943776953639592012-02-23T14:37:11.955-08:002012-02-23T14:37:11.955-08:00Thanks JR for the Equilibrium post link. As always...Thanks JR for the Equilibrium post link. As always, a clearly thought out and written article.<br /><br />FOFOA says:<i> This is probably money's most important function, transactional medium or medium of exchange. But in this function, in this transactional role the specific value of a currency does not matter at all. All that matters is stability, or relative stability since perfect Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-1950299592813936142012-02-23T14:15:06.817-08:002012-02-23T14:15:06.817-08:00Well said Edwardo,
Greece needs more than someone...Well said Edwardo,<br /><br />Greece needs more than someone "painlessly eradicating all of their debt by tomorrow morning," they need fundamental change.<br /><br /><b>You can't squeeze blood from a turnip. That's an old saying. It means that you cannot get something from someone that they don't have. In order to pay its debt in real terms, Greece needs to ultimately get JRhttps://www.blogger.com/profile/16345441084565082627noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-67372624300584066682012-02-23T14:11:16.567-08:002012-02-23T14:11:16.567-08:00it is not enough to regulate banking (or some form...<i> it is not enough to regulate banking (or some formalized market for private-to-private loans), but he would have to interfere with every private contract in which full payment in not made in physical gold or silver. </i><br /><br />I don't see why private contract payments will not be settled in gold or silver under a metallic standard. Such private contracts cannot even exist under such Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-30985056398230889602012-02-23T14:01:32.125-08:002012-02-23T14:01:32.125-08:00High 5's VtC. :PHigh 5's VtC. :PMotley Foolhttps://www.blogger.com/profile/06902761012772262091noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-43832345474276408872012-02-23T13:54:44.467-08:002012-02-23T13:54:44.467-08:00So as such, I don't see anything fundamentally...<i>So as such, I don't see anything fundamentally wrong with what Sandeep says, except that to put trust in such a system would mean we put trust in banks (which history shows that it never works).</i><br /><br />His proposal is wrong for two reasons. Firstly, it misses the point. In order to make a gold (or silver) standard work, it is not enough to regulate banking (or some formalized Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-8151027443810372862012-02-23T13:48:36.266-08:002012-02-23T13:48:36.266-08:00This is very hilarious to me:
WSJ: What inning ar...This is very hilarious to me:<br /><br /><i><b>WSJ:</b> What inning are we in with Greece until we know if we’re at the resolution to end all resolutions?<br /><br /><b>Mario Draghi:</b> I don’t know baseball. But if we didn’t have that package finalized, there would be no game.</i>Robert LeRoy Parkerhttps://www.blogger.com/profile/10590421224681538226noreply@blogger.com