Short-term I would lose about 1-2% percent on the
borrowed fund but in the long-term I would gain 1-2%
when I lock in a long-term bond that has a coupon rate
that is above the borrowed rate. I don't see how bond
would be a loser if interest rates goes higher since I
will locking in a bond
On 2003-10-30, Fred Foldvary uttered:
So basically this is a response to credit constraints.
Another reason people may be inclined to use local currencies is that the
narrow circulation and informal accounting usually associated with them
make it difficult to collect taxes on the associated
--- Sampo Syreeni [EMAIL PROTECTED] wrote:
On 2003-10-30, Fred Foldvary uttered:
So basically this is a response to credit constraints.
Another reason people may be inclined to use local currencies is that the
narrow circulation and informal accounting usually associated with them
make it
--- Tyl [EMAIL PROTECTED] wrote:
I don't see how bond
would be a loser if interest rates goes higher since I
will locking in a bond that yields a higher coupon rate
than the borrowed rate.
If you can borrow money at a lower interest rate than what the bonds pay,
and you hold the bonds until
On 2003-10-31, Fred Foldvary uttered:
At least in some cases we can analyse local currencies as instances of
tax evasion.
So why not just use federal paper dollars for that?
Because if you get caught, you'll pay for it. In case of local currency,
the tax authorities do not bother as easily
this also reminds me of the internet currencies created during the dotcom
boom (i.e. flooz beenz) and also of e-gold (which is still around:
www.e-gold.com), all of which use tokens rather than dollars (which are
tokens too). these always seemed to me to be ADDING a step to transactions
rather
In a message dated 10/31/03 12:21:31 PM, [EMAIL PROTECTED] writes:
So why not just use federal paper dollars for that?
Because if you get caught, you'll pay for it. In case of local currency,
the tax authorities do not bother as easily because of the cost and the
trouble with drawing the line
On 2003-10-31, [EMAIL PROTECTED] uttered:
People also often suffer from a confusion between income and money.
They tend to think of the two as synonymous, that anything not received
in money isn't income and therefore isn't taxable.
Precisely. If we drop the distinction, we can for instance
--- Burns, Erik [EMAIL PROTECTED] wrote:
and also of e-gold (which is still around:
www.e-gold.com), all of which use tokens rather than dollars (which are
tokens too).
Gold is not a token. Gold is a real commodity. Tokens are substances of
little intrinsic value which can be exchanged for
People also often suffer from a confusion between income and money.
They tend to think of the two as synonymous, that anything not received
in money isn't income and therefore isn't taxable.
Precisely. If we drop the distinction, we can for instance easily see
that
all sex is actually
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