Central Bank Digital Currency to End Inflation

[JohnDB]

You are missing the point. That is inflation on the Peso. Chile has two currencies the Peso and the Unidad de Fomento. The UF insulates people from the effects of inflation on the Peso because it is indexed to inflation so payments are adjusted to keep up with inflation.

Chile’s Economy Stagnates in Second Quarter as Demand Withers

Chile’s economy is teetering on the brink of recession after unexpectedly flatlining in the second quarter amid soaring inflation and heightened political uncertainty over a new constitution.

www.bloomberg.com

Ummmm....nobody cares about Chile's digital currency....

 

[Ragnar Celine]

Have you been to Chile?
Your digital currency might work on paper but it still isn't working for the average guy on the street who owns a vegetable cart.

1. You are confusing two different things. Chile doesn't yet have digital currency. It has the UF. It is possible to combine digital currency with a function similar to that of the UF.

2. You don't know if it isn't because of other social factors that the average guy in Chile isn't doing any better.

3. If the UF doesn't work why do they continue to use it?

 

[Grumblenuts]

Not sure your analogy works since not everyone is as fond of feces as you are.

Not an analogy, pissy. Now you've even forced me into agreeing with JohnDB about something. That's how truly idiotic you are. It's genius. The way you pretend to give a shit and yet obviously couldn't care less.

 

[JohnDB]

1. You are confusing two different things. Chile doesn't yet have digital currency. It has the UF. It is possible to combine digital currency with a function similar to that of the UF.

2. You don't know if it isn't because of other social factors that the average guy in Chile isn't doing any better.

3. If the UF doesn't work why do they continue to use it?

Read the article....
Government support STOPPED...meaning normal pricing and inflation now applies.

 

[JohnDB]

Not an analogy, pissy. Now you've even forced me into agreeing with JohnDB about something. That's how truly idiotic you are. It's genius. The way you pretend to give a shit and yet obviously couldn't care less.

I know right?
It's gotta be a blue moon somewhere.

 

[Toddsterpatriot]

You are missing the point. That is inflation on the Peso. Chile has two currencies the Peso and the Unidad de Fomento. The UF insulates people from the effects of inflation on the Peso because it is indexed to inflation so payments are adjusted to keep up with inflation.

The UF doesn't circulate. People can't hold it. No bank account in Chile is full of UF.

Your idea of "insulates people from the effects of inflation on the Peso" is flawed.

 

[MarathonMike]

Who ever said handing total control of currency to the government would be good for "the people"?

Handing them control of currency would be good for some people, not so good for others.

You can't please everyone.

Thank you for making my point EXACTLY. The only people who would benefit from your plan would be those in banking, government and the elites who control them. Everyone else would be at the mercy of The State.

 

[Ragnar Celine]

The UF doesn't circulate. People can't hold it. No bank account in Chile is full of UF.

Your idea of "insulates people from the effects of inflation on the Peso" is flawed.

Most bank deposits in Chile are 30-day nonindexed deposits or 90-day
indexed deposits whose rates are expressed UFs. Interest rates on indexed deposits are expressed as a premium over the UFs. On maturity, the deposits are converted back to pesos at the current UF rate.

The UF is used in Chile for nearly all mortgages, car loans, and long-term
government securities. All taxes are expressed in UFs. Pension payments
are automatically tied to the UF.

The UF is widely used for rent payments.
Alimony and child support payments are often denominated in UFs. Office
properties for sale are quoted in UFs. Houses for sale are often quoted in UFs.

The change in the peso value of the UF is taken into account in wage and salary contracts.

 

[Grumblenuts]

3. If the UF doesn't work why do they continue to use it?

"They" meaning who? For whom does your bell actually shill? Be honest. I think the banks there ("central bank") use it to appease the public, but primarily for profit.. because they can.. "They" control it. Just as "the banks" (The Fed) here controls the dollar. SSD County. Duh!

It was created on 20 January 1967, for the use in determining the principal and interest in international secured loans for development, subject to revaluation according to the variations of inflation. Afterwards it was extended to all types of bank loans, private or special financing, purchases and investments on instalments, contracts, and some special situations. It is also used in legal standards such as the par value of stock and capitalization of companies, and fines.

It has become the preferred and predominant measure to determine the cost of real estate, values of housing and any secured loan, either private or of the Chilean government. Individual payments are made in Chilean pesos (the country's legal tender), according to the daily value of the UF. A similar currency unit for use generally in payment of taxes, fines, or customs duty is the Unidad Tributaria Mensual [es] (UTM) (literally: monthly tax unit).

See, they can't even use UF currency to pay their taxes. The working slob just gets the peso and whacked with the same levels of inflation as ever. Still allowed to poop into toilets 2.

 

[Toddsterpatriot]

Most bank deposits in Chile are 30-day nonindexed deposits or 90-day
indexed deposits whose rates are expressed UFs. Interest rates on indexed deposits are expressed as a premium over the UFs. On maturity, the deposits are converted back to pesos at the current UF rate.

The UF is used in Chile for nearly all mortgages, car loans, and long-term
government securities. All taxes are expressed in UFs. Pension payments
are automatically tied to the UF.

The UF is widely used for rent payments.
Alimony and child support payments are often denominated in UFs. Office
properties for sale are quoted in UFs. Houses for sale are often quoted in UFs.

The change in the peso value of the UF is taken into account in wage and salary contracts.

On maturity, the deposits are converted back to pesos at the current UF rate.

Pesos? Unprotected pesos?

The UF is widely used for rent payments.

But no one ever pays in UF or accepts payment in UF.

 

[Grumblenuts]

Thank you for making my point EXACTLY. The only people who would benefit from your plan would be those in banking, government and the elites who control them. Everyone else would be at the mercy of The State.

Right. The "elites" control "the government." So quit blaming "the government." Blame the fucking elites. Having too much is too much. That's the real problem. We can't just let the pigs keep pigging out. It's gotta stop.

 

[Ragnar Celine]

Thank you for making my point EXACTLY. The only people who would benefit from your plan would be those in banking, government and the elites who control them. Everyone else would be at the mercy of The State.

Merchants benefit by not having to rely on banks as intermediaries since payments would be made in real time directly from the payer to the payee eliminating transaction fees for each payment.

Consumers benefit from price drops by eliminating transaction fees.

Taxpayers benefit because it makes tax avoidance and tax evasion more difficult and impossible to use offshore banking to hide money from the government.

Crime victims benefit since it makes it easier to track crime and makes it harder for criminals to launder money.

 

[evenflow1969]

Ya, no thanks on the whole digital currency only thing.

 

[CrusaderFrank]

Who ever said handing total control of currency to the government would be good for "the people"?

Handing them control of currency would be good for some people, not so good for others.

You can't please everyone.

OK, you're a Fascist. Got it

 

[CrusaderFrank]

Merchants benefit by not having to rely on banks as intermediaries since payments would be made in real time directly from the payer to the payee eliminating transaction fees for each payment.

Consumers benefit from price drops by eliminating transaction fees.

Taxpayers benefit because it makes tax avoidance and tax evasion more difficult and impossible to use offshore banking to hide money from the government.

Crime victims benefit since it makes it easier to track crime and makes it harder for criminals to launder money.

 

[CrusaderFrank]

Merchants benefit by not having to rely on banks as intermediaries since payments would be made in real time directly from the payer to the payee eliminating transaction fees for each payment.

Consumers benefit from price drops by eliminating transaction fees.

Taxpayers benefit because it makes tax avoidance and tax evasion more difficult and impossible to use offshore banking to hide money from the government.

Crime victims benefit since it makes it easier to track crime and makes it harder for criminals to launder money.

You have be a member of Congress person to launder money without any repercussion

 

[CrusaderFrank]

The Biden bots arrive to convince people that allowing the government the ability to drain your accounts with a keystroke is a terrific idea!

What could go wrong?

You will own nothing and be happy!

 

[Ragnar Celine]

The Biden bots arrive to convince people that allowing the government the ability to drain your accounts with a keystroke is a terrific idea!

What could go wrong?

You will own nothing and be happy!

People don't need bots to convince them.

Digital currency practically sells itself.

It's much easier than trying to make them believe paranoid fantasies about Klaus Schwab and the WEF wanting to drain their accounts.

 

[Grumblenuts]

Merchants benefit by not having to rely on banks as intermediaries since payments would be made in real time directly from the payer to the payee eliminating transaction fees for each payment.

We have such a system already. It's called a hard cash only transaction.

Consumers benefit from price drops by eliminating transaction fees.

Lol. That would only be a one time event even if true. But the banks will out as long as they're allowed to remain private, self-controlled, and bailed out by the government every time they royally fuck everything up. Given the major banks (at least) were made public (utilities), as should have been done long ago, then you might be improving something or other with this scheme. As it is, you're just kidding yourself. Don't kid yourself.

Taxpayers benefit because it makes tax avoidance and tax evasion more difficult and impossible to use offshore banking to hide money from the government.

Right. There's your Big Brother fascist invasion of privacy. The very reason why a vibrant cash economy shall persist at least until profits drop far down the list of our societal priorities. When you base policy upon everyone being a potential crook you only end up with increased oppression and cleverer crooks.

Crime victims benefit since it makes it easier to track crime and makes it harder for criminals to launder money.

Because the Big Banks would never dare, still controlling it all, right?

 

[Ragnar Celine]

We have such a system already. It's called a hard cash only transaction.

Lol. That would only be a one time event even if true. But the banks will out as long as they're allowed to remain private, self-controlled, and bailed out by the government every time they royally fuck everything up. Given the major banks (at least) were made public (utilities), as should have been done long ago, then you might be improving something or other with this scheme. As it is, you're just kidding yourself. Don't kid yourself.

Right. There's your Big Brother fascist invasion of privacy. The very reason why a vibrant cash economy shall persist at least until profits drop far down the list of our societal priorities. When you base policy upon everyone being a potential crook you only end up with increased oppression and cleverer crooks.

Because the Big Banks would never dare, still controlling it all, right?

The big tech and big data companies that get the contracts to implement it will also benefit.

Since profit is still way up at the tippy top of societal priorities and the banks, government, and big tech all stand to make massive profits from digital currency, it seems they're gonna do whatever's in their power to make it happen.

Scaremongering and conspiracy theories can't stop it. Resistance is futile.