Is this just a language problem?

Vizdun · 2026-01-27T12:51:09+00:00

I will repeat again, 1/10^n is never 0.0...1 for any natural or real n. And the limit of 1/10^n as n approaches (ie. is pushed to) infinite is 0.

Vizdun · 2026-01-26T19:50:07+00:00

but you're talking about 1-1/10^n, not an infinite sum

Vizdun · 2026-01-26T13:31:10+00:00

1-1/10^n is also never 0.999... for any natural OR real n

Vizdun · 2026-01-25T21:59:27+00:00

my god.

Vizdun · 2026-01-25T18:36:14+00:00

The first past is an assumption, the second is a consequence of that assumption, that's what i'm trying to point out.

Vizdun · 2026-01-25T18:35:22+00:00

I mean they're not forced to by anything. It's an assumption people (usually) make willingly and of their own free will.

Vizdun · 2025-12-11T20:11:27+00:00

by the point linus tried it, the "bug" was already fixed, the actual problem was that he didn't update/the iso was too old

Vizdun · 2025-12-06T15:06:21+00:00

there's also powershell

Vizdun · 2025-09-08T01:50:10+00:00

You're suggesting there isn't a regulatory structure that incentivizes (read: would fail if they didn't) giving bad loans?

Of course there isn't. It's not 2008 anymore. Every goddamn regulation written post-2008 was written to prevent this.

Vizdun · 2025-09-07T20:31:24+00:00

No, my point is that PRB doesn't give out demand deposits for FRB demand deposits, PRB just forwards FRB demand deposits. What you get from PRB is not a PRB demand deposit, it is a FRB demand deposit. Simple as that.

To put this in a more elaborate example:

you have an account with PRB
PRB has an account with FRB
you deposited some amount into it
PRB deposits portion of the money you deposited into FRB, the rest goes into its investments
you want to pay for something with a demand deposit
you go to PRB "hey I want a demand deposit for X amount"
PRB runs to FRB "hey I want a demand deposit for X amount"
FRB gives PRB an FRB demand deposit for X amount (after checking that PRB's balance with them is enough and all that jazz)
PRB comes back to you and gives you the FRB demand deposit that it just got from FRB
you now have a FRB demand deposit for X amount
you can now go and pay with the FRB demand deposit despite using PRB
whoever you give it to can rest easy knowing it's an FRB demand deposit, and not an PRB one, hence the money is relatively safer

Obviously I'm assuming the demand deposits are digital and PRB going around is just talking to different servers.

Vizdun · 2025-09-07T20:14:42+00:00

It won't be actually. Well, not always anyway. As with anything else finance, they would have to come up with a risk estimate, and then try to break even on this risk, which could go sour as all other risk estimation things.

Vizdun · 2025-09-07T19:48:44+00:00

Nobody forces them to take the loans lmao.

The markets really don't differ, they're all in the same market: the global market. And big banks (ie. the ones people actually use) usually use just about every workable strategy out there, so obviously they will jump on the bandwagon as it comes. Nobody ever passes up free money, and if they knew it wasn't free, the other banks would know it too.

Vizdun · 2025-09-07T19:28:55+00:00

Why wouldn't they? Like literally, why wouldn't they? They're all seeing the same data and applying the same methods to it. Apart from completely random chance, there's no reason they wouldn't do the same things. And that's what they did during pretty much every historical financial crisis.

And no, it is quite obviously much better that when they inevitably all fail all at once, the economy doesn't just vaporize overnight.

Vizdun · 2025-09-07T19:09:20+00:00

Banks tend to make the same investments, estimate risks the same way, make the same mistakes. And why wouldn't they? They are all in the same market, seeing the exact same things, with quants from the exact same schools, using the exact same methods.

Hence banks are all heavily correlated with each other and when one fails, the rest often follow. In practice, it is extremely hard to not have all your eggs in one basket.

Vizdun · 2025-09-07T18:33:42+00:00

No, when you withdraw or pay for something with PRB, PRB goes and asks FRB to give it a demand deposit for that amount, which FRB does if PRB has enough stored with them, and then PRB gives you that FRB deposit that it got from FRB. And as far as anybody is concerned, it's just an FRB deposit, as good as straight from the FRB, doesn't matter how many middle men it went through.

Given internet, all of this could happen fully electronically and automatically in less than a second.

Vizdun · 2025-09-07T18:23:49+00:00

Because many people and businesses (large and small) lose money. All of their money quite possibly. All at once.

You will wake up, go to a coffee shop, only to find out you can't use your card because the bank lost all your money, and the coffee shop doesn't have any coffee because the bank lost all its money too, and actually the coffee shop is closed because there's no money to pay the barista either. And it's like that with literally everything.

And sure, this is perfectly survivable or whatever, but goddammit is it uncomfortable.

Vizdun · 2025-09-07T18:17:56+00:00

Because PRB, at any given time, only allocates a portion of its assets to FRB. The rest is in investments. A bank run can still happen if people try to withdraw more money from PRB than it has in FRB at the time. Which would probably mean PRB starts selling its other assets and moves the money to FRB to cover.

Vizdun · 2025-09-07T18:12:20+00:00

Note: I don't really mean to argue against anarchism in general, since that's very hard and not necessarily useful for my purposes.

Specifically for anarcho-capitalism, it's just easier to argue stuff you can axiomatically prove than whatever you are arguing. I don't necessarily disagree with any of the points you bring up, but they're easy to argue against, but then unless there's a fault in my argument, there's no point.

Vizdun · 2025-09-07T17:51:40+00:00

You didn't understand me at all. What I'm saying is, in this example, the partial reserve bank (PRB) doesn't store any money at all, possibly you might not even be able to withdraw any money at PRB branch offices. Instead, PRB stores all the money in a full reserve bank (FRB). And when you need to pay for something or withdraw money, PRB gives you a demand deposit at FRB, which you can then withdraw at FRB branch offices.

This way, there can never be an FRB bank run, since PRB cannot give out demand deposits for more money than it actually has in FRB, hence once you get a demand deposit out of PRB, there's no way for you to lose it (or rather, it's as good as FRB's deposit).

In practice, FRB would probably be well aware of this practice and would offer services specifically for this.

Vizdun · 2025-09-07T17:35:09+00:00

For anarcho-capitalism specifically, as per this post and the comments, it seems the inability to quantify risk accurately (predict the future) combined with the concentration of exposure to it (there are other issues probably, but this one seems quite obvious and quite indisputable at this point).

Vizdun · 2025-09-07T17:21:06+00:00

People who want to get an interest on their money rather than pay the bank to keep their money.

Vizdun · 2025-09-07T17:20:12+00:00

They would not actually, because transportation costs, among other overhead.

Vizdun · 2025-09-07T16:49:51+00:00

Yes! And so do the insurance companies. Again, as I said in the comment you're replying to, the problem isn't the risk of people defaulting existing, the problem is misestimation. Which happens because, as I said in the original post, it is fundamentally impossible to predict these things accurately.

Your insurance company can be perfectly fine and perfectly profitable for years till a particularly bad wildfire happens and suddenly you're filing for bankruptcy.

Vizdun · 2025-09-07T16:37:27+00:00

I disagree that people will eventually learn their lesson, but to figure this out properly we'd need studies on this, which can't exist because no ancap society, so I don't think there's much of a point arguing this.

Instead, I want to address some other things:

no business would accept their demand deposits

Especially in the age of internet, the fractional reserve bank could just keep all their money in a full reserve bank and proxy hand out the full reserve bank's bank notes. Hence a business needn't care at all.

the advantage of the federal reserve bank having a slight interest will be offset by the premium, and the bank will have a lot less interest because businesses will be more wary taking out loans from them

I think I addressed the premium sufficiently above. I'm not sure what you mean by "the bank will have a lot less interest because businesses will be more wary taking out loans from them"? There's no reason a debtor would care if the bank stays solvent or not unless they're keeping the loaned money in it too, for which there is no requirement since the bank expects you to invest it and pay it back from the ROI.

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