[NSX2]

>> I agree that is a problem with capitalism, specifically with fiat currency; but it can be corrected if we slowly move back to something akin to the gold standard. It's fixable.

Funny you say it's fixable when all my research over the last 10 years of the writings of BOTH conspiracy cranks AND people who have held positions at federal reserve banks indicate that (1) it's not fixable (2) it's going to break big-time, sooner than we expect and (3) the most important thing smart people should be doing right now is dropping everything and figuring out a new money system because the "old guard" can't come up with an answer and we're going to need one soon. For example, here's some "data" for you: I'm sure you're aware that Bush jacked up national debt to close to 10 trillion (from about 2 when he got here). But did you know state and municipal debt far exceeds that, and private debt exceeds even that?

Here's a sobering thought: when you compile the total debt in this country, private and public, and the amount of money needed to service that debt, and the cost of life (which will go up as we start experiencing inflation as the dollar is falling apart), SOME TIME between 2011 and 2013, it will be impossible to both continuously service that debt AND pay for the needs of life on an individual/corporate/government basis.

That means either banks get paid and we starve or there will be a civil war or something to suspend life as we know it.

What is your easy fixing solution to that (please don't say "gold" or "silver")?

Or perhaps you've looked at recent events over the last 8 years and have noticed ramp up in militarization, war for resources, and a huge spike in private prison construction and militarization of police forces in this country - almost like the establishment is getting ready for a big change.

Actually, we need fiat currency - we just need it distributed differently. Right now it's issued as debt-creation collateral, so debt always outpaces wealth creation on an exponential growth curve. Eventually you run out of possibilities of taking on new debt; for example, current value of "mega-derivatives" (institution-to-institution) is roughly now at about 11x total WORLD GDP. If you think the housing bubble is bad, wait until somebody figures out it's technically impossible for all derivative writers to give anywhere near the coverage they promise in case a worse-case scenario comes along.

Having said that, gold is useless because (1) it fails to account for population growth (2) it fails to account for real wealth creation and (3) the same people who control our fiat-based system currently control most of the existing gold supply in the world and have investments / buy options on most new discoveries of gold. So even if we switch ... what then? Do you think the "establishment" is going to help us setup a system to overthrow them by sharing the gold they own? Do you own gold? A lot? I don't and most people don't. And don't believe that B.S. about "gold call options" because most gold investment houses currently sell at about 10x ability to physically deliver, so unless you have it in your hand it counts for squat ...

>> I live in silicon valley.

Hence, you live in a fantasy la-la land where everything works in ways it doesn't anywhere else on the planet, so keep in mind your perception is warped and inapplicable elsewhere

>> I meet people all the time who have been rewarded for being clever (who come from lower class or middle class backgrounds). A lot of posts on YC have already disproven this point. You're ignoring a lot of data; not to mention you're just giving a lot of conjecture without hard facts.

Try that now as the reality sets in that most of the last 10 years (dot-com, expected oil bonanza in Iraq, housing bubble, etc.) was just one distraction after another to keep our minds off the fact that the underlying system is coming to the end of the track with no solution.

>> No offense, but I can list a lot of examples: Paul Graham, Jerry Yang, Bill Gates, Sam Walton, the list goes on and I'm not even including foreign business men. Your argument is really weak.

Sigh. I envy the gleam in your eyes. No offense to Paul Graham, but I'd like to see his effort duplicated now ... same with Yang. Doubt it would even be possible.

Bill Gates. Um ... Bill Gates is about as establishment as they come ... let's see ... his first customer was IBM, which fronted him money for a then non-existent product. But as everyone who know Phil Greenspan's writing knows, the CEO of IBM was friends with Bill's mommy. Gee ... wonder if that had anything to do with how a 21 year old got a face-to-face with the CEO of the biggest tech company of that time ...

Sam walton? Sam walton succeeded because of a one-time massive systematic non-repeatable even (globalization). You think anything that massive is just around the corner for you to exploit - any day now?

Not too familiar with China, so I'll pass comment, but it wreaks a lot of South Korea when it was being pegged as the "New Japan" and then it turned out to be a massive fraud.

>> Yes, that called traditional communism,

Wow. Read up on how standard oil got set up. Or even microsoft. If you think the "big business" aspect of capitalism is any different from what you imagine communism to be ... you need to read a lot more.

>> Again why do you think China switched

I don't know what you mean by "china switched" ... last time I checked China was a carefully micro-managed mixed economy, similar to Japan after WWII.

> History has already disproven your argument.

Really? How so? Last time I turned on my t.v. every presidential candidate was telling me that we're currently borrowing money from semi-communist china to finance oil from Sharia-law-based-commerce Saudi Arabia to go around playing make-pretend capitalism and the situation can't go on much longer.

If anything, recent analysis from many perspectives tell me that history has proven the exact opposite - that much of what we call the "capitalist success" story is a well-managed prop piece.

Tell me, have you ever travelled much across this country?

I have. Aside from a few pockets of development, most of this country is just one big poverty-inflicted, systematically busted wasteland.

If you live in the Valley and think that just because people there drive lots of Ferraris, that = America is one big happy successful place, you need to get some perspective.

Silicon Valley, like Hollywood, is amagical, artificial dream world that represents reality about as much as a commercial for a luxury resort.

> actually believe in what you're writing WHY are you trying to do a startup?

Because my startup is based on this reality and trying to find a solution to it, not trying to make a lot of money so I can afford to delude myself by surrounding myself with the trinkets of success that money can buy in this country.

I'm specifically trying to start a startup in preperation for a change in perception of reality, not because I want to have a quick IPO, cash in and move to Orange County ...

[chaostheory]

not every country with a capitalistic leaning economy has the debt our country has - many are in the black...

"sigh. I envy the gleam in your eyes. No offense to Paul Graham, but I'd like to see his effort duplicated now ... same with Yang"

they weren't the first and they probably won't be the last - history will repeat itself. that's like saying everything that's been invented has already been invented.

"Sam walton succeeded because of a one-time massive systematic non-repeatable even (globalization). You think anything that massive is just around the corner for you to exploit"

change is the only thing that's constant. if I don't take advantage of it, someone else will and the guard changes again...

"last time I checked China was a carefully micro-managed mixed economy"

yes but it's a big change from am almost pure centralized socialist leaning economy. a lot of individuals have already benefited from the change. u can't tell me it's not a big change from what they had in say the 60's

"Tell me, have you ever travelled much across this country?"

I have, and I beg to differ especially when I can compare with a lot of 3rd world countries I've been to. can you do the same?

"Because my startup is based on this reality and trying to find a solution to it"

based on everything you just wrote, the logical option would be to move to some EU nation with a more socialist leaning economic system and just relax. lookin at your arguments it doesn't make sense to stay and start a capitalistic venture within a capitalistic leaning economy since the Microsofts and Exxons of the world will just smash it. If you're just preparing "for a change in perception of reality" and u don't care about "surrounding yourself with lots of trinkets", u don't need a startup; a non-profit will do just fine.

"Silicon Valley is amagical, artificial dream world that represents reality about as much as a commercial for a luxury resort."

that's a little strange to say considering in your past posts it seems like you lament not being in SV since "it's the startup hub". I guess you being here would do wonders for your startup "based on this reality"

[NSX2]

"not every country with a capitalistic leaning economy has the debt our country has - many are in the black...

That's actually technically impossible by the very nature of interest-rate-based distribution of continous fiat currency, but that's a whole other topic.

"they weren't the first and they probably won't be the last - history will repeat itself. that's like saying everything that's been invented has already been invented.

Um, actually they were the first and I don't see any others so I assume they're the last. I don't recall a past instance where somebody sat a computer, put some letters and symbols together in a certain context, then either started a multi-billion dollar company or got bought out by one. I think you misunderestimate how much of a carefully-managed distraction the dot-com boom was from underlying systematic problems. It tooks a small army to set the way for an economic boom so that the rich can sell off their shares to a newly-developed "bigger fool" class ...

"change is the only thing that's constant. if I don't take advantage of it, someone else will and the guard changes again...

If you studied the history of currency management, you'd be surprised how little has changed in the 6,000 years or so when money as we think of it was created. Most of what we think of as "modern" aspects of money were created centuries-to-millenia ago.

Or here's another one for you: Obama is related to both Bush and Cheney who, according to a Vanity Fair-sponsored bit of research are distant relations with the British Royal Family, which is descendent from German Royalty which is related to the Austrian Hapsburg Dynasty. So, here we are, about 800 years after they got kicked out of the "power structure" and now they basically, via proxy, are back in control again, albeit less visibly. I'm sorry to point this out, but those in the seat of power have money and resources and time on their hands which they use to ensure their continuity in ways you can't begin to fathom while the rest of us are busy trying to make money to eat.

> I have, and I beg to differ especially when I can compare with a lot of 3rd world countries I've been to. can you do the same?

Yes. But here it's worse. In 3rd world countries, poor people have to endure a few well educated rich snobs. But mostly the stress is less because everyone realizes everyone else is poor. Over here, many poor people have to endure watching disproportionately rich 18 year old ditzes driving by in the new Mercedes convertible Bank of Daddy just financed. Not too easy when the discrepency is side by side ... at least if you're in most developing nations most people around you don't have it that much better.

"Silicon Valley is amagical, artificial dream world that represents reality about as much as a commercial for a luxury resort." that's a little strange to say considering in your past posts it seems like you lament not being in SV since "it's the startup hub". I guess you being here would do wonders for your startup "based on this reality"

--- I think my point was not communicated well or misunderstood. Just because I wish I could duplicate some of the better aspects of S.V., but can't, and realize that it seems to only happen there, doesn't mean that I don't distinguish that as a unique reality. Just the opposite. You're the one who's there, and imagine that the whole world either does or is on the verge of working like it does there. I'm trying to tell you that "there" exists almost nowhere else on earth, so it's not indicative of reality because it's not a duplicatable formula. Hence it's a special situation.

[chaostheory]

"Um, actually they were the first and I don't see any others so I assume they're the last."

I'm speaking of successful entrepreneurs in general and not just of successful internet ones (even then there were a lot of successful internet entrepreneurs that came after them)

"if you studied the history of currency management"

that's currency, I'm speaking of the world and trends at large including technology

"Yes. But here it's worse. In 3rd world countries, poor people have to endure a few well educated rich snobs... many poor people have to endure watching disproportionately rich 18 year old ditzes driving by in the new Mercedes convertible"

doesn't sound like you have been to the 3rd world. over there people care about more important stuff like food and water and maybe even basic education; you call suffering watching some guy drive a car you can't afford? we live like kings over here

"Just because I wish I could duplicate some of the better aspects of S.V..."

so you really do believe in what you wrote? I thought you were just messing with me. ironic

[NSX2]

>> I'm speaking of successful entrepreneurs in general and not just of successful internet ones (even then there were a lot of successful internet entrepreneurs that came after them)

The tech boom was setup over half a century ago with massive investment by the military serving as the basis of the beginning of most of what we use in consumer land today. Same with the auto industry - it was systematically planned on purpose, like the high construction, by the oil cos. QUESTION: what "big infrastructure" investment is paving the way for the entrepreneurs of the future? Please don't say "alternative bio energy" ...

Entrepreneurs are important players, no doubt. But the game needs to be setup properly first. Our game is falling apart and needs to be reset just like you used to restart your Win95 based PC mid-day when it clogged up.

>doesn't sound like you have been to the 3rd world. over there people care about more important stuff like food and water and maybe even basic education; you call suffering watching some guy drive a car you can't afford? we live like kings over here

No, that wasnt' my point. My point is that it's different being "there" where most people are suffering and in the same boat than it is here where people suffer right alongside ostentatious wealth aquired via sometimes legit, sometimes not so means.

> so you really do believe in what you wrote? I thought you were just messing with me. ironic

Let me say this as clearly as I know how. I ADMIRE some things about S.V. ... I WISH I could duplicate them. Many people do. But so far it has not proven possible. Having said that, as an "outsider" I recognize it's uniqueness. You, as an insider, seem, to me, to be saying, basically, "Why don't you folks just, you know, come together and innovate like we do and the market will reward you for it."

What I'm saying is the over there it's like a well-oiled machine that seems to have biased your impression of the challenges everyone outside of there experiences.

I wish I could experience "that" over "here", but recognize "that" is not reality most places. You experience "that" there and see the word through S.V.-colored glasses ...

Come on, I know I'm not always super clear but I can't be killing this point that bad.

Look at it this way - imagine an NBA player telling you, "What's the problem - just jump up and dunk it like I just did - what's so hard about that?"

Imagine you're 5'6". Just once you'd like to put that guy in your frame and say, "Okay - go ahead - jump up and slam dunk it now like you just advised me!"

[rms]

It might be 100 years, but in the long term I think the wealth transfer mechanism will be in delivered energy. Barrels of oil work well for now, maybe we'll switch to Joules eventually.

[moog]

So when we eventually crack fusion, we'll all be millionaires!

[rms]

Exactly. My point is that energy is the only thing we have that is scarce. There's water, perhaps, but we can convert salt water to potable water with enough energy. Why abstract away energy with bills or metals?

http://en.wikipedia.org/wiki/Kardashev_scale

[NSX2]

Energy isn't that scarce, actually. If we eliminated our military, for example, there would instantly be a 100% surplus as the military accounts for about 50% of the fuel this country uses. As for why we abstract energy with bills, it's because people are easier to control that way. Plus you need to account for the not to easy to calculate idea of "human energy" represented by money. If China's population doubles, bankers can increase the money supply to account for their economic activity - to a point. But how can we increase the energy "things" to do that? A bit harder.

[rms]

Of course energy is scarce! We can't afford to send very heavy things into space. We can't send a radio signal into space that is so loud that you can be sure as hell everything within 100 light years is going to know we are here. We can't build superstructures, even if we got rid of the military. We could probably build a huge particle accelerator if we got rid of the military though...

[NSX2]

Well, if we use energy for stupid, wasteful projects then of course energy is scarce; if we use it more effectively/efficiently, then less so. It's all based on how/what we use it for.

>We can't build superstructures, even if we got rid of the military.

Research Dubai. They're building the world's 1st, 2nd, 3rd, and fourth greatest structures at the same time. The #1 building is almost twice the height of those towers in malasia.

> We could probably build a huge particle accelerator if we got rid of the military though..

personally making scooters and small hatchbacks sexy like they do in Europe would be a good idea, as would coordinating flights better to not have half-full jets wasting fuel taking off ...

[NSX2]

What the hell is the basis of downgrading this post? Seriously I come across posts like, "It depends" that have like, 46 points next to them. I put up a post, short, long, on point, off point, boring, interesting, and there's like a 24-hour army of down-modding ninjas tracking my every keystroke just waiting to pounce on me and downgrade ... get a life you haters!

[NSX2]

Um ... I think they covered that already in "Mad Max" ... didn't work out too well if I recall the movie correctly.

[NSX2]

Oh no, downmodded by the army of down-modding ninjas tracking my every move ... oh no ... now they'll down this post too!

[rms]

Usually complaining about downmodding will get you downmodded more. I gave you some free points to protect you from the oncoming hoard.

[NSX2]

But I get downmodded no matter what. It seems like there's a conspiracy to make sure I never get above mid-50s. Heck, I think if I add all the 30-to-50 variances I'd be up to at least 500 by now. Okay. Fine. Um, "Me too. I agree. What that guy said reminds me of an article by Paul Graham ... BTW, I was using all these cool new startup apps, then I found out they were all started by this incubator, Y Combinator, which just happened to be run by the guy who wrote most of my favorite articles on the whole wide internet, Paul Graham. Did I mention I can't wait for someone to do a mashup of Xobni and RescueTime and Reddit? Also, a random thought occurred to me: without Viaweb, Yahoo would probably never have gotten off the ground. Also, last, I would upmod everybody if only I could, especially pg and rms. Have I mentioned how clean, fresh and well-thought out the design of Hacker News is? If only all forums were this elegant. There! Can I please have a few extra points now? My dream is to someday break the magical (for me) "60 barrier". I've heard tales. I believe it's possible, somehow, someway. I love all you guys, even the band of down-modding ninjas tracking my every move. May you all have many buyout offers from Google and Microsoft, but enough customers to be able to turn them down and go on to bigger, better things.

Now watch this get downmodded.

[rms]

Obviously karma is very important to you, I gave you as many points as I could.

Just say what you want and don't worry about the karma. You've got something of a stream of consciousness style going on; your posts are longer than most here. My advice is to try and make your posts more concise. If they were shorter, people would be more likely to take the time to reply rather than just downmod you.

[NSX2]

Thank you for your generous point-granting kindness, sir.