Skip Navigation

InitialsDiceBearhttps://github.com/dicebear/dicebearhttps://creativecommons.org/publicdomain/zero/1.0/„Initials” (https://github.com/dicebear/dicebear) by „DiceBear”, licensed under „CC0 1.0” (https://creativecommons.org/publicdomain/zero/1.0/)E

exasperation

@ exasperation @lemmy.dbzer0.com

Posts
3
Comments
451
Joined
1 yr. ago

  • Terribly performing memecoin

    Jump

  • So the question becomes, does the money get created when it is put in a deposit account balance, or when it gets spent outside the bank for the first time?

    The textbook answer is that the money is created as soon as the deposit balance is created, not when the account holder spends it down enough to where the bank needs to borrow to maintain liquidity. It's how the Fed counts M1, for example.

    The bank's need to actually run a viable business, and central bank regulations, prevents it from going nuts with this, but that's beside the point of what I'm saying: a bank doesn't need the central bank's permission or approval to create money by extending loans. In the aggregate, central bank policy affects the way all the different banks do this, but the end result is that the banks can create a shitload more money than there are reserves (and the reserves don't need to be physical currency, either, since they can just be balances in accounts with other financial institutions).

  • Terribly performing memecoin

    Jump

  • I can withdraw all I own and turn it into gold or pebbles if I like

    You don't turn it into anything. You spend it to buy something else. You can spend it without withdrawing any kind of physical representation of the currency, too, with just plain old electronic payment systems.

    The borrower provides an asset (collateral) and the bank provides an asset (savings from third parties).

    Plenty of loans are made unsecured, where the borrower doesn't pledge the asset. The act of money creation through lending is the same regardless of whether it's secured or unsecured loans. And even secured loans don't change the underlying ownership and control of the collateral, unless a foreclosure happens.

    That's not how central banks work. You still need collateral, which you can't pledge multiple times.

    Yes, but the collateral can be the loans that they've extended, which, again, were created by creating a loan balance and a deposit balance. So they can extend a loan for $100, let the borrower spend $100, and then borrow against the original borrower's loan balance.

    No, it can't be done infinitely, but I never claimed that it could be. I'm just saying that the process itself is entirely ephemeral, through written or electronic records alone.

  • Terribly performing memecoin

    Jump

  • Read my original comment again. I explicitly talk about banks borrowing to maintain liquidity. It's an important limit on their ability to create money, and nobody said anything about infinite money supply.

    But it doesn't change the fact that the act of money creation is caused by a bank creating a loan, and the money comes into being without a single physical act of manufacturing: it happens on a computer, and before computers it happened on paper.

    So without claiming that money was unlimited, I did point out that money itself is overwhelningly digital in the modern age. And the limits don't come from any physical constraints.

  • Terribly performing memecoin

    Jump

  • Yes, the limit to commercial bank lending is creditworthiness and default risk (because the bank is left holding the bag when a borrower doesn't repay), and the cost of maintaining liquidity (the bank can borrow against the loans it owns, but it may cost a higher interest rate than they'd earn on the cash they've lent out). This paper lays it out pretty clearly, and is basically the near unanimous view among macroeconomists.

    Or, in some regulatory environments, banks are required to maintain a minimum fractional reserve, which limits the total amount of loans it can lend out with its underlying assets.

    But the money is created when the loans are created, and destroyed when the loans are repaid. The other stuff behind the scenes to give the system stability is important, but doesn't actually create or destroy money.

  • Terribly performing memecoin

    Jump

  • Not exactly. The central banks acting as a lender of last resort encourage the commercial banks to create money in this way, but be assured that the actual creation occurs whether the bank needs to borrow money or not. The definition of money supply looks to the balances in checking accounts, and creating and disbursing a loan increases the balance in a checking account (while simultaneously increasing the negative balance in a loan account, but loan balances don't shrink the money supply), and as that money is spent it increases balances in someone else's checking account.

  • Terribly performing memecoin

    Jump

  • It's how all of it works. Money is just balances on double-entry bookkeeping, and the paper currency essentially is a piece of paper that the bearer of that paper is good for moving the balances in that ledger system.

    And almost all of those ledgers are now digital.

  • Terribly performing memecoin

    Jump

  • We don't have a fixed money supply in the modern system when banks can issue debt. Not even close. I suggest you read the Bank Of England's paper called "Money Making in the Modern Economy" which I mentioned.

    Yes, I'm quite familiar with that paper.

    I'm not arguing that we have a fixed money supply. I was saying that if we were on a gold standard, in an alternative universe hypothetical, where the money supply was close to fixed, we would probably see worse price volatility.

  • Terribly performing memecoin

    Jump

  • Even with a fixed money supply, prices are still set by a formula that accounts for the velocity of money, or how often any particular unit of money is spent (I spend a dollar at the store, who spends the dollar with a supplier, who spends the dollar by paying a worker, who spends the dollar and so on and so forth). It also accounts for the total economic production.

    Peg the whole thing to a semi fixed supply of gold and the prices can still change drastically with shifts in the velocity of money or total aggregate production. That's why fiat currency is good, so that the central bank can pull on different levers to try to keep prices stable, even as different things are happening.

  • Terribly performing memecoin

    Jump

  • We already have mostly digital currency.

    Money is created when a bank creates a loan, by starting with nothing and then splitting that nothing into a credit in one account (the borrower's checking account, usually) and a debit in another (the borrower's loan balance). From there, most transactions are digital where an ACH transfer or similar results in some numbers being subtracted from one account and added to another.

    Almost all of this happens on computers, and even before computers it just happened literally on a paper ledger, with paper checks.

    You might ask, "wait where does the bank get its money from to be able to allow money to be withdrawn or transferred to another bank?" If the bank doesn't have the liquidity to do so, it can always borrow money from other banks or the government, with the last resort in the United States being the federal reserve banks, who by the way also print all the paper currency. So having that backstop is important for regular banks to have the power to create money, but the actual creation of money happens digitally to begin with, regardless of whether the bank later needs to distribute paper bills or borrow from the federal reserve.

  • Why they do that

    Jump

  • The point isn't for everyone to remember everyone, with n (n-1) links being made.

    The point is for each person to be able to remember one person. Usually the hot chick.

  • Seriously, who are these peoplem?

    Jump

  • This user tends to post this kind of stuff. Not for me, but also not annoying enough for me to block.

  • Women who consider themselves unattractive, what’s something men don’t realize about how they treat you compared to women they find attractive?

    Jump

  • I've always been in that weird space of apparently hella attractive to some and then the complete polar opposite to others, so I've experienced both.

    I'm a man, but in a similar boat. In terms of physical appearance I've been unconventionally attractive/ugly hot most of my adult life. The way some people react to, like, Adam Driver or Benedict Cumberbatch or Cillian Murphy.

    It took my entire 20's to learn to steer my dating life towards wanting to be with people who already found me attractive rather than trying to convince someone to find me attractive, and finally learning to deal with higher rejection rates than the typical person, while sorting through the people who found me to be ugly, without necessarily knowing in advance who would be in which category.

    I also learned that there were people who were embarrassed at their own preference of finding me attractive, and that was its own minefield. Or those who wanted more external validation of their choice in me and didn't necessarily find it in their friends who thought I was ugly.

    I came out of that roller coaster of a decade for the better, and ended up picking up from that experience a certain amount of confidence, the kind that says "I already know I'm attractive whether you think so or not," and having less patience for certain types of relationship insecurities, either from myself or my partner.

    And then I met my wife shortly after that revelation. She still teases me that I have the confidence of a much taller man (a riff on a 30 Rock line we both love), but I don't think I could've gotten her attention if I didn't learn lessons from a series of failed relationships.

  • How do you feel?

    Jump

  • Sometimes in public forums my goal is to show the neutral third parties who might stumble upon that thread to see for themselves which view is more reasonable. Bad faith arguments that are common sometimes need to be knocked down whenever and wherever it persists.

  • Removed

    Ah, the joys of being a woman in her early thirties!

    Jump

  • You can claim all you want that the test results are normal; I'm not arguing that.

    The symptoms you describe are not normal. Not for women in their 30's, 40's, 50's, or past that.

  • Removed

    Ah, the joys of being a woman in her early thirties!

    Jump

  • These symptoms aren't normal. Stop trying to project that on the literal billions of women who have also reached the age of 30. The overwhelming majority of them are not experiencing what you're describing.

  • Removed

    Ah, the joys of being a woman in her early thirties!

    Jump

  • It's not creepy to be aware of the sleep patterns of someone who sleeps next to you, especially 10 hours a day.

  • US House to vote on bill to make daylight saving time permanent

    Jump

  • People like daylight time in the summers, because that gives them the opportunity to do things after work in sunlight. For places where they're getting 16 hours of sunlight, they'd generally prefer sunrise at 5am and sunset at 9pm, rather than 4am to 8pm.

    But daylight time is terrible in the winters. Sunlight from 8am to 4pm is probably better than 9am to 5pm.

    That's basically why we had daylight savings switching clocks to begin with. But the fundamental tradeoff in the higher latitudes was always summer versus winter.

  • Price hikes pushing consumers to abandon their favorite brands

    Jump

  • I am loyal to certain cheese producers, from local small scale producers to national artisan producers that ship to me, to national larger scale cheese makers who have specific products I like. I'll buy certain imported cheeses with place protections, like Italian DOP cheeses.

    With chicken, I like a particular producer, because the chicken just tastes better to me when it's air chilled and of a specific size (4 lbs/1.8 kg is the ideal size).

    For flour, I use a combination of a local mill for whole wheat, and a reputable national producer for bread flour and all purpose white flour. I have a specific brand for 00 pizza flour. I know what to expect from those products, and that allows me to be precise.

    For pasta, I have several brands and shapes to choose from, and can obviously do fine with whatever box, but I still have my preferences for specific shapes and brands and bronze-die lines. Some of them are imported and some are domestic.

    Condiments and sauces? Yeah, I have a preferred ketchup brand, 3 specific soy sauces for different applications, 3 specific mustard brands for different applications, and a preferred mayonnaise. I keep about 5-10 hot sauces on hand, each for a different style of food.

    As you mention, for wine and beer and liquor and liqueurs, I am fairly picky when it comes to brands and quality. Life is too short to drink bad alcohol.

    But it also pretty much extends to non alcoholic beverages, too. I choose my coffee and go for specific roasts by specific roasters. I like a particular brand of soda. I even have a preferred brand of orange juice.

    For chips and snacks, I very much prefer specific flavors of specific brands, including even the biggest of the industrialized brands for certain products.

    With chocolate? Yeah, brand matters to me a lot. Most other candy, too.

    I have a preferred butter brand. I can make do with others, but I prefer mine. There are only two bacon brands I like. I have a hot dog brand preference, too.

    I'm pretty serious about food, and I love blind tasting things and forming preferences around new foods, revisiting old taste tests, etc. I couldn't imagine not caring about the details on food, and that often means knowing the difference between brands (and knowing when a brand has changed its formula/recipe).

    People out there are doing good work, making delicious food. Sometimes they put their name on it, and that means something.

  • New names are hard, ok?

    Jump

  • I mean haven't you seen the Bass Pro Shops Pyramid? It's obviously a tribute to ancient Egypt.

  • Comic Strips @lemmy.world
    exasperation @lemmy.dbzer0.com

    Transmission (Perry Bible Fellowship)

  • Comic Strips @lemmy.world
    exasperation @lemmy.dbzer0.com

    Stan Kelly (The Onion) - Throwback and Forth

    theonion.com /throwback-and-forth/
  • Comic Strips @lemmy.world
    exasperation @lemmy.dbzer0.com

    Your Email Did Not "Find Me Well."