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heroineworshipper
Intermediate Crude
Joined: Jul 14, 2006
Posts: 727
Location: Calif*
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 Posted: Tue May 06, 2008 5:27 pm Post subject: New currency for real estate transactions |
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Now a prediction 4 U. There is going to be a new currency for real estate. All real estate transactions will have to be in the new currency instead of dollars.
It's going to be the Landmark (L). 1 Landmark = $25,000 Creation of new Landmarks will be much more restricted than the creation of dollars. This will lower inflation for real estate & prevent unsustainable bubbles without creating "cash shortages" for everything else.
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joeltrout
Light Sweet Crude
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Joined: Sep 19, 2007
Posts: 1317
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| Posted: Tue May 06, 2008 5:42 pm Post subject: Re: New currency for real estate transactions |
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| heroineworshipper wrote: | Now a prediction 4 U. There is going to be a new currency for real estate. All real estate transactions will have to be in the new currency instead of dollars.
It's going to be the Landmark (L). 1 Landmark = $25,000 Creation of new Landmarks will be much more restricted than the creation of dollars. This will lower inflation for real estate & prevent unsustainable bubbles without creating "cash shortages" for everything else. |
Maybe this is a dumb question...but what is a landmark? 
joeltrout |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1978
Location: Australia
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| Posted: Tue May 06, 2008 6:53 pm Post subject: Re: New currency for real estate transactions |
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Wouldn't change a thing, except perhaps create currency risk.
Given that in US is the Federal Reserve bill that is legal tender.
So for your day-to-day transactions you need the dollar bills.
So buying/selling property would be directly translated into dollars as for instance Landmark based monthly interest payments need to come from a dollar based income. Properties sold would have surplus landmarks converted back to US$ as this is needed for other transactions etc.
So what you end up with is an illiquid currency linked to US$.
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Gerben
Heavy Crude
Joined: Mar 07, 2007
Posts: 386
Location: Holland, Belgica Foederata (Republic of the Seven United Netherlands)
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| Posted: Tue May 06, 2008 10:25 pm Post subject: Re: New currency for real estate transactions |
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| I think the Landmark is a copy of the Rentenmark, the German solution to hyperinflation: a currency backed by public land. |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1978
Location: Australia
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| Posted: Tue May 06, 2008 11:12 pm Post subject: Re: New currency for real estate transactions |
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For that to work, Fed Reserve would have to own the properties that is used to back it up.
You can't back something up with somehting that is owned by someone else.
Basically the purpose of the backing is to have collateral in case the paper bill looses it's value.
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It's not a bailout, it's a buy-in" - Nancy Pelosi |
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steam_cannon
Expert
Joined: Dec 28, 2006
Posts: 2554
Location: MA
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| Posted: Tue May 06, 2008 11:25 pm Post subject: Re: New currency for real estate transactions |
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| Gerben wrote: | I think the Landmark is a copy of the Rentenmark, the German solution
to hyperinflation: a currency backed by public land. |
Well hey, if it worked for the NAZI's then... 
http://en.wikipedia.org/wiki/Reductio_ad_Hitlerum
Last edited by steam_cannon on Tue May 06, 2008 11:33 pm; edited 2 times in total |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1978
Location: Australia
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| Posted: Tue May 06, 2008 11:31 pm Post subject: Re: New currency for real estate transactions |
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| Quote: | I think the Landmark is a copy of the Rentenmark, the German solution
to hyperinflation: a currency backed by public land. |
Reading Wikipedia it states that it was land owned by Rentenbank.
(or at least they were able to mortgage it)
| Quote: | | The Rentenmark replaced the Papiermark. Due to the economic crises in Germany after the Great War there was no gold available to back the currency. Therefore the Rentenbank, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion Rentenmark to back the new currency. |
Wiki
Steam_cannon, what happened to the Manga picture? Liked the idea of chicks in nazi uniforms better than that one.
And just to be a bit picky (forum nazi one might say), NSDAP didn't get into power until -33.
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Dreamtwister
Fission
Joined: Feb 06, 2006
Posts: 2266
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| Posted: Tue May 06, 2008 11:44 pm Post subject: Re: New currency for real estate transactions |
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| heroineworshipper wrote: | | There is going to be a new currency for real estate. All real estate transactions will have to be in the new currency instead of dollars. |
We already have that...
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The whole of human history is a refutation by experiment of the concept of "moral world order". - Friedrich Nietzsche |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1978
Location: Australia
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| Posted: Tue May 06, 2008 11:46 pm Post subject: Re: New currency for real estate transactions |
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Making RE deals in gold or other non-legal tender valuables should be good idea as this is a barter trade and not subject to taxes.
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Ferretlover
Moderator
Joined: Jun 13, 2007
Posts: 3859
Location: Minniesotuh
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| Posted: Wed May 07, 2008 6:15 am Post subject: Re: New currency for real estate transactions |
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| Micki wrote: | For that to work, Fed Reserve would have to own the properties that is used to back it up.
You can't back something up with somehting that is owned by someone else.
Basically the purpose of the backing is to have collateral in case the paper bill looses it's value. |
Didn't I read something posted that the dollar is now backed by 40% money and 60% mortgages? Or, am I remembering that wrong?
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Tanada
Expert
Joined: Apr 28, 2005
Posts: 3867
Location: West shore Lake Eire, MI, USA
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| Posted: Wed May 07, 2008 5:34 pm Post subject: Re: New currency for real estate transactions |
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| Micki wrote: | | Making RE deals in gold or other non-legal tender valuables should be good idea as this is a barter trade and not subject to taxes. |
Acording to what I have read the IRS does consider barter trades to be subject to taxes. My former employer got into trouble because they were trading services with a contractor and not booking the trades as if they were cash exchanges for tax purposes. You can barter to your hearts content, but you have to list the values of the items or services bartered in terms of cash value.
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Always appeal to a man's enlightened self interest, you can trust him to look out for himself honestly, It's when you appeal to his Honor or the Common Good that he stops paying attention. |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1978
Location: Australia
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| Posted: Wed May 07, 2008 6:53 pm Post subject: Re: New currency for real estate transactions |
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Hmm...barter trade sounds like a minefield. Had in mind that company that paid salaries using silver coins and they got away in court with taxing based on the nominal value.
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It's not a bailout, it's a buy-in" - Nancy Pelosi |
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Tanada
Expert
Joined: Apr 28, 2005
Posts: 3867
Location: West shore Lake Eire, MI, USA
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| Posted: Wed May 07, 2008 7:31 pm Post subject: Re: New currency for real estate transactions |
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| Micki wrote: | | Hmm...barter trade sounds like a minefield. Had in mind that company that paid salaries using silver coins and they got away in court with taxing based on the nominal value. |
Nominal value is the value of the commodity, which is what the IRS wants you to do, face value is a whole different price rate.
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Always appeal to a man's enlightened self interest, you can trust him to look out for himself honestly, It's when you appeal to his Honor or the Common Good that he stops paying attention. |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1978
Location: Australia
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| Posted: Wed May 07, 2008 7:46 pm Post subject: Re: New currency for real estate transactions |
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| Quote: | | Nominal value is the value of the commodity, which is what the IRS wants you to do, face value is a whole different price rate. |
No for coins, the nominal value is the engraved (face) value.
Sure IRS wants to value it at the intrinsic value, but in theis court case they lost. The coins, being legal tender, were valued at the nominal value.
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It's not a bailout, it's a buy-in" - Nancy Pelosi |
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Tanada
Expert
Joined: Apr 28, 2005
Posts: 3867
Location: West shore Lake Eire, MI, USA
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| Posted: Wed May 07, 2008 7:50 pm Post subject: Re: New currency for real estate transactions |
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| Micki wrote: | | Quote: | | Nominal value is the value of the commodity, which is what the IRS wants you to do, face value is a whole different price rate. |
No for coins, the nominal value is the engraved (face) value.
Sure IRS wants to value it at the intrinsic value, but in theis court case they lost. The coins, being legal tender, were valued at the nominal value. |
So what do they do about the 'junk silver' coins that are illegible due to wear on the surfaces? Just curious as I missed the court case you are referring too.
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Always appeal to a man's enlightened self interest, you can trust him to look out for himself honestly, It's when you appeal to his Honor or the Common Good that he stops paying attention. |
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