>>16327743
>Science of economics
There's no such thing, economics is either a mathematical pursuit totally divorced from reality. Or a branch of philosophy. It's not a science in the slightest, no matter how much economists might want to believe otherwise.

>>16327796
Economy is similar to ecology, its a field of knowledge with known patterns, some are universal like the food chain, water cycle and so on, not something you use to predict highly specific things like the evolution of species

>>16327743
>abolish idiotic leftist rent control law artificially keeping down supply
>Supply skyrockets due to pent up high demand
I wonder why.

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>>16327796
>economics is either a mathematical pursuit totally divorced from reality. Or a branch of philosophy.
same can be said of physics

>>16327949
This, in the land of the blind the one eyed man is king, that pretty much sums up milei.

>>16327743
What's wrong with having limited housing?

>>16328070
What's wrong with limiting supply well before demand?

>>16327743
>rent isn't controlled
>fewer people can afford rent
>more "housing supply" is vacant
The argument lacks something.

>>16327796
>It's not a science even THOUGH it works

>>16328088
Not him but what's an example of economics working?

For economics to work you have to accept that humans are inherently rational. This is obviously bullshit and why economic is built on sand.

>>16327955
In many places, physics has devolved into math-nerd fan-fiction. Just endless equations that lead nowhere and serve no real purpose, to propose or argue things that don't even exist in reality.

I've seen a few people call it out, but no one really seems to want to recognize it either yet.

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Cutting the rent control law is removing a price ceiling, not a supply side shock. This could cause a supply side shock in two ways:
>Investors see more opportunities in building homes
>Landlords raise rents, leading to less affordability/sq ft, leading to roommate situations
Is either of these what's actually happening? OP posted click bait, not data, so who knows. And once again, dumb /sci/entists that got into worthless, inapplicable fields like pure math and theoretical physics show their ignorant ass when it comes to anything regarding the studies of human behavior or money in general. I posted a textbook question on financial mathematics on here a few weeks ago and got really pathetic responses. But what more should I expect from people who decided to be the equivalent of jannies for universities? Anyways I will pick one of you in this thread to call a retard, as tradition dictates for any econ thread on /sci/

>>16328098
Retard

>>16328152
>financial mathematics
I like playing ouija board with friends too.

>>16327743
Milei is literally an economist and I'm guessing he predicted this is exactly what would happen, so... yes.

Put an economist in charge of the economy... whodathunk

>>16328152
What was the question, out of curiosity?

>>16327743
Yeah this has happened elsewhere so there's precedent. Why would you build a building if the government artificially restricts the effect of demand? Doing that of course also reduces supply, which of course makes housing more valuable, but of course due to the government intervention the economy has no way to react. Usually with rent control you have a years long wait-list for homes that spawns a black market, and absurdly high rents just outside the region with rent control. Pretty much everyone with knowledge of economics predicted this

>homelessness increased
>number of people living in a home increased
>families are living together
>quality of life DECREASED

Elon/idiots in this sub/conservatives: HURR WOW REPUBLICAN POLICIES WORTED DERRR BC SUPPLY, MARKET FTW

>>16328213
get a grip

>>16328074
Nothing. That's why I ask you. Why do you think it's wrong?

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>>16328157
It's made a lot of people very rich. Show some respect
>>16328171
>Suppose you are Goldman Sachs
>A gold mining company wants you to sell them a short forward contract on gold
>How do you set the price of the contract and hedge your risk?

>>16328215
how about you get some common sense. anon is right

>>16328213
>in this sub
stupid shill you're on 4chan, not reddit

>>16328229
>It's made a lot of people very rich
>Show some respect
Doesn't follow.

Not him but
>Suppose you are Goldman Sachs
>A gold mining company wants you to sell them a short forward contract on gold
>How do you set the price of the contract and hedge your risk?
Literally Pre-K math that could be replaced by AI.
GS uses salesmanship to sell things, not math.

>>16328171
>>16328229
Forgot to mention that this question is from Ch3 of an intro level book. Students will have passed calculus for finance and calc based stats. The chapter is on using derivatives to hedge. Your answer doesn't need any difficult math or nuance to it. It should just be technically correct in terms of financial risk and pricing.

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>>16328241
That's crazy that you don't even have the reading comprehension to understand the question, or the balls to give an answer. You're anonymous and safe here. I'm going to make fun of you when you're wrong, but you're not going to cry in front of your crush.
>AI
>Pic related

>>16328243
A mediocre 5 year old can easily be trained to understand everything about Black Scholes. There's nothing interesting about the math.

>>16327743
No fucking shit, it’s literally just basic logical consequences

>>16328245
What part of Black Scholes couldn't be replaced by AI? (Hint: it already has been since at least 2009 if not earlier.)

>>16327743
>jews charge more rent
>goyim forced to pay or go homeless
>jews can now buy out the rest if your country
any guesses as to whats next?

>>16328249
What use is black scholes when you can't even apply it to make a deal? It's a simple question requiring only broad strokes. The answer doesn't require any math or numbers, just a conceptual understanding of the market.
>>16328256
The part where you actually have to make a fucking deal. Pic related is yet another chatgpt fuck up.

I find it funny that you losers refuse to even attempt to answer a simple question. I get it, you took a glance at the black scholes model and thought, "heh, this math isn't so hard, but it's not interesting." The answer to this question doesn't require any math. Like>>16328241
said, it is actually pretty close to kindergarten level. It's extremely simple once you understand the concepts. Put your nuts on the fucking table and give me a simple fucking answer, or admit you can't

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>>16328265
>/Sci/ and /g/ trash talk AI every chance they get

>>16328265
Ask your question.

>>16328268
>>16328229
Suppose you are Goldman Sachs. A gold mining company wants you to sell them a short forward contract on gold. How do you set the price of the contract and hedge your risk?

Answer requires little to no math, just an understanding of risk, conceptually

>>16328267
AI has no value other than marketing and ad sales. If AI were smart enough to prove something the smartest human couldn't prove, the proof would sound like you (schizo trash) and be summarily deleted.

>>16328245
>start prompt
>turn off the wifi
>stops working
Wow ai has been disproven!!1!

>>16328271
Do you think I'm schizo babbling just because of the namefagggery? Read the thread. There's a bunch of losers here who think they know econ and finance because they're math or physics majors.
If AI could prove something, it would plug it into coq or metamath.

>>16328270
I page you to dust off my 2006 Paul Wilmott and read my assistant the formula. Meanwhile, every trading platform already read me the same thing instantly for free. Learn to code maybe?

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>>16328273
>Full 6g wifi and mobile data showing on the screenshot
Are you retarded?
>>16328278
>Implying I don't know how to code
>Implying I don't have ba in pure math, minor in econ, Master in ML engineering from top schools
>Implying you can answer the question
Sci really is full of arrogant retards. I will give the answer and explain it once someone attempts to answer.

>>16327796
economics is the dismal science

>>16328284
I've already forgotten more than you've learned.

>>16328070
It crashes the fertility rate which in turn leads to everything crashing and burning.

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>>16328295
Once again, there's no formula to recall or forget. Answering the question requires only a basic understanding of the market, and perhaps a little theory.

>>16328303
>there's no formula to recall or forget
>a basic understanding of the market
Thanks in advance for losing all your money. You make the market.

>>16328243
I got as far as College Math. Can I search the terminology? It's been a minute, and cognition has left me after lack of sleep.

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>>16328314
>Larping as some rich og quant on sci
You get paid $20/hr to tutor undergrads in calc 1 as a requirement for your Masters program. Pic related is you.

>>16328321
Research whatever you want. As I've said in multiple posts, the answer doesn't require any math, only a basic understanding of risk and the market.

>>16328301
>it crashes the fertility rate
Wait a minute. I thought we were overpopulated, that third world shitholes had unsustainable fertility, that the carbon footprint left by people = bad and that "the market fixes itself".

I still fail to see the problem.

More houses being built that nobody can afford to rent. Amazing. Milei has literally destroyed Argentina's economy and sold its state industries off to Jews btw

>>16328083
>>16328213
>>16328332
doesnt matter to conservatives since they see housing purely as a commodity/investment and not a place for human beings to live. whether the houses are being occupied or not is irrelevant to them. not even trying to start an argument just saying thats how they think

>>16327743
AFAIK, the law was terrible but I'm pretty sure that's not the most relevant reason for the boom... argentinians can't affort to live in their own country anymore because everything became too expensive, even more expensive than in neighboring countries..

>>16327743
To all of the retards whining that people won't be able to afford the new housing:
There is plenty of demand above the rent control prices. If there wasn't, then they wouldn't "need" rent control.
The brokies will still be housed. They will just have to move to an area that matches their income instead of squatting in shit they couldn't afford otherwise.

Stop identifying with losers, losers.

>>16328229
>>16328243
you also need to know what a "short forward contract" means though

>>16328378
people are leaving cities and even the country, retard. that means demand is falling, particularly in the biggest, most important cities.
also, this might mean people are starting to share places. so no, you could be and are wrong.

>>16328403
Now explain why any of that is bad

>>16328403
Shit people do not deserve to live in cities, and everywhere insists on making their cities accommodate shit people. And all the cities are shit. I wonder how many fewer deranged drug addicts criminals I would walk past every day the city didn't subsidize the worst of us to harass the rest of us. Fuck you

>>16328407
>>16328416
who said anything about being good or bad, you fucking retard? you are trying to explain something with a load of bullshit assumptions. meanwhile, the reality is that the country became too expensive for its own citizens to even live a normal life.
so you make up a load of bullshit and when confronted with the reality you deflect the topic and accuse people of being shit and stuff
typical for a mentally ill 4channer. I'm not even sure why I come here anymore. you are supposed to follow basic logic and know how to argue...

>>16327743
>Random claims in headline
doubt.jpg
just because they say it, pretty much makes it a guarantee its not true

>>16328395
This is sort of what I mean by "basic understanding of the market" that can easily be looked up on Google. It's just an agreement to sell an asset some time in the future at some price. Literally what the entire global financial sector is built on.

Disgusting zoophile, since he took office he has done nothing but raise taxes and devalue the currency.

>>16328403
>people are leaving cities and even the country
Dead weight tends to leave when the free ride ends.
Also, source?
>this might mean people are starting to share places
Good. That is how most people solve the rent problem. That they weren't doing this before indicates there was an artificial influence (rent control) inducing them to behave sub-optimally.

I will agree the big cities are important to the economy. While you choose to sympathize with the dead weight just occupying space, I sympathize with the rest of the country that is denied the potential economic prosperity because someone who is productive can't find a place to stay in the important big city.
Or the talent just leaves the country (this will probably still happen since argentina won't un-shit itself overnight).
Honestly, the solution is to do the opposite of what has been done. Cater to the smartest, richest, and most energetic people instead of the dead weight.

You can't run an economic engine on shit.

>>16328088
Economics has never worked as a science or in any scientific fashion.

>>16328124
That's the sort of thing that's going to take years to correct and it won't even be a correction so much as just a trend running to absurdity and collapsing.

>>16328088
it doesn't work.

>>16327949
Lefties got told once again. Based ancap Miley is BASED

>>16328213
Tranny leftoids be mad. Kek like clockwork

>>16328337
>>16328332
Leftoids ITT. Go back

>>16328352
>anymore because everything became too expensive, even more expensive than in neighboring countries..

Thanks to marxists who ruled the country before Milei. Now a saviour is on a block and his results are showing better than mutilated gaping holes of leftists

>>16328488
Austrian economics work pretty well. It's more robust than quantum mechanics and actually is concise and logical

>>16328332
>>16328337
Do you actually think increasing supply wouldn't affect or would negatively affect prices? Like, honestly, sincerely, actually? Because that's retarded of you. Cheaper housing is usually seen as a good thing.

>>16328581
Leftoids don't care about facts or science only feelings. Don't bother.

>>16328571
Yes, but it's completely non-scientific. Science is about experimentation, part of that requires you to be able to eliminate extra variables. This is completely impossible to do for economics, which is why economics cannot be scientific. This is actually core to how the Austrian school functions. It relies on a priori logical deductions specifically because of its rejection of empirical economics.

>>16328581
Houses stay empty because the housing market drives their value up annually
This goes on until houses are $1,000,000+ each and the bubble pops
Kill all real estate speculators

>>16327743
>inflation aug 23: 124.4%
>inflation jul 24: 273.4%
>no source
I'm calling bullshit on this.
>>16328201
>Why would you build a building if the government artificially restricts the effect of demand?
Because It's more profitable than other ways of spending your money. It's rather easy to exploit tenants even in rich countries.
And no one decrees that an apartment gets constructed. It involves hundreds of people and continuous enforcement of laws, which aren't givens in Argentina.

>>16328624
>Science is about experimentation
Darwinism has zero basis in experimentation, the big bang also zero basis in experimentation, GR was announced as a theory before any experimental basis for it existed, once observations were made that disproved the theory, GR still was accepted as a valid theory. Science doesn't work in the idealized fashion that you're taught it does in kindergarten.

>>16327743
>>16327949
Supply skyrockets and so does homelessness because wealthy landowners are able to raise prices and eject rent control tenants to the street. They charge more for the empty units (than rent controlled prices) to noncitizens who capitalize on the demand to work in fashionable cities like Buenos Aires.

The only scientific solution to economy is to do what China did. Command economy, central organization and planning where the state makes the decisions. 95% Home ownership. State builds massive housing projects. They have a surplus of housing. Governments in the West do not care about their citizens and simply agonize them so of course you can't conceptualize it.

We need command economies without the egalitarianism inherent to Marxist Leninist regimes. In the computer era, a planned economy can be done perfectly since information is perfectly known and symmetrical so planning for demand can be achieved.

>>16328694
>since information is perfectly known
Of course not. The information needs to be updated everyday but planning of construction projects have tons of inflexible constraints.

>>16328685
Venezuela has the highest economic growth of all time under Chavez. Sanctions were applied around his death and they lost their largest customers. Authoritarianism lowered crime. The US had an incentive to ruin that country and have been trying to do that since Hillary Clinton was secretary of state. The problem is Venezuela took half measures, didn't start a single party state, stopped their nationalization and planning efforts from going beyond the oil industry. This leaflet is cuckservative propaganda to get US retards to subconsciously accept flooding their country with brown asylum refugees fleeing le ebil socialism (which they failed to do other than for oil) just like what happened with Cuba.

>>16328694
>still has large homeless problem
>still has ludicrously expensive housing
>still has people buying houses they'll never live in
>still has housing being used as a speculative investment first and foremost
What exactly is this "solution" you speak of?

>>16328708
Thanks to marxism their fuckups are hard to fix you tranny leftoid.

>>16328243
What book?

>>16328724
Options futures and other derivatives, 10th edition, John Hull

>>16328124
>t. guy who has never cracked open a physics textbook in his life

>>16328337
Owning or living in a home is a traditional lifestyle. Conservatives who uphold traditional values would therefore seek to preserve this. Only progressive liberals would seek to increase homelessness, see California.

>>16328259
Funi for once

>>16328694
It's almost as if those tenants should get better paying jobs.

>>16328703
Do you choose to live in opposite land or are you just completely unaware that everything you said is 100% the opposite of reality?

>>16328152
Retard its flooding the market with existing homes that were previously not rented out because of retards in lawmaking like you

>>16328694
>Supply skyrockets and so does homelessness
Why is it that the model in your head doesn't allow the tenants who were kicked out to find a new place in a shittier location that they can afford?

>>16328569
>Thanks to marxists who ruled the country before Milei.
what kind of braindead response is this? Milei policies are Mileis doing.

>>16328228
>. Why do you think it's wrong?
A lot of people think its bad because it interferes with their lives, others are happy with it. I usually like a growing civilization and urbanization and think its good, but it depends on the race of the people living in these new houses, otherwise its wrong (in my opinion)
>>16328229
>It's made a lot of people very rich. Show some respect
There are no mathematics for having a group of pension fund managers choose your hedge fund as a target for investment

>>16328270
>just an understanding of risk,
Its a fantasy because it cant be measured. Sure you can consider a list of risks and assign a probability, at some point its like Drake's equation

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>>16328703
Its true, there was a lot of economic growth during Chavez time. People say he just got lucky, but they dont say its bad luck during Maduro's time. They just say he is bad

>>16328422
>who said
It was implied by your petulant seething
Cry more

>>16328422
>the reality is that the country became too expensive for its own citizens to even live a normal life.
That makes no sense. Maybe some argentinian landlords are asking for a trillion dollars per microsecond for rent, but no one is paying that.

>>16329107
>That makes no sense
do you know what a devaluation is? ever lived through one?

>>16329157
>do you know what a devaluation is? ever lived through one?
Yes, and if you had an actual argument you would just describe what the problem is rather than throw around generic maladies and flail your arms in the air. I also know what inflation is, what economic depression is, and a few other things and concepts.

>>16329157
Let me tell you something about countries being affordable or not: All real estate is basically affordable, since it cant travel. Rents will mirror the populations purchasing power, and so do property prices to some degree.
Anything else that can move, such as food, clothing, cars, machinery, materials, electronics, will have prices somehow in line with international prices or a bit higher if theres high custom duties and bad infrastructure, with few exceptions for some subsidized goods.
That should be as affordable as work productivity allows, as a continuum. When people work in fake do-nothing jobs, they should not expect real purchasing power from their salaries

>>16329204
my man, you are so retarded that I'm leaving the answer to you. maybe read a book or something before talking about shit. I mean, the topic and context of this thread is "economics"

>>16329213
>All real estate is basically affordable
yes, you can just take it over from its owners. but then the state and its armed forces will come for you in defense of the owner of the private property

>Rents will mirror the populations purchasing power
ah, yes, the magic of economics, where this shit happens immediately after the currency loses 2/3rds of its value, because, well, owners just don't care about the value their money (and the price of the rent they have been charging, and every other income they might have in the near future) just lost, right?
you must be braindead to argue like this.

>>16329265
>my man, you are so retarded that I'm leaving the answer to you.
You are not fooling anyone with this. Why is it you shills belive leaving something as an exercise for the reader does anything but expose them? Not only you cant fool me but you cant fool anyone reading this thread. If you had an argument you would just make it, otherwise you should stay quiet as saying anything will just make it worse for you
>>16329265
>yes, you can just take it over from its owners.
No, i mean that owners have to rent their properties at rents that people can pay. Otherwise no one will pay them. Rents will always mirror purchasing power, a lot more than property prices which can stay as bubbles for decades but rents have to be paid each month and have to reflect reality.
>currency shenanigans
This doesnt invalidate anything i said. I said rents have to be affordable, they will be cheap in shitty places where everyone is poor, the only thing that doesnt change in value, not much at least, is the price of anything that can travel, such as food or clothes or cars. Anything that can travel will be exported from where its cheap to where its expensive until prices equalize

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europe will be like this in 10 years

>>16329306
>October 2015

>>16329087
>Can't measure risk
>Actuaries everywhere laughing at you

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>>16327743
Why exactly was there a housing issue in the first place? Who was making the housing sector unaffordable that required rent control? It's not like the shenanigans going on in America, Canada or Australia where people are going full ham on flipping homes for profit and wealthy foreigners buying shit up due to economic hub proximity.

Reality
>collapse the economy with your austerity meme
>people can't afford housing
>supply outstrips demand

Reality (Chud's version)
>Housing supply booms in argentina

the fact that they don't tell you the whole story, says it all

>>16328886
The flippancy by which you assert your point, giving nothing to back it up, juxtaposed with the absolute atrocious responses /sci/ gives me to a sophomore level finance question leads me to believe that you are the retard, not me.

>>16328337
Lmfao
Socialism fails for this exact reason.

>>16327807
Evolution is not Science.

>>16329869
LMAO

>>16329445
Maybe the internationally adopted model of central banking makes housing unaffordable by default or by design. Cash sloshes around near the top of the system but can't find legitimate constructive investment once China's been filled/used up as well as its neighbours. So it has to go somewhere, which ends up being a combination of stocks that have ballooned far beyond their book value or P/E ratio, cryptocurrency, and real estate the public can't not pay for because everyone needs to live somewhere. If governments were smart they might do something like invest in overproducing the material inputs for home construction, perhaps with a side of export controls or tariffs, but Canada at least is laser focusing its efforts on the financing end of things, which is fuel to the fire.

>>16327743
>economics
>science
Choose one.

>>16328088
Except it doesn't, because economists inevitably end up making retarded assumptions completely divorced from reality (otherwise the math gets too hard), rendering their theories completely useless.
When an economist says "let's assume", what they're really saying is "let's pretend (because my theory won't work otherwise)".

>>16328936
>>16329869

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/biz/rali here. Mileinoma hasn't won a victory in doing this. The Central Bank interest rate in Argentina is 40%, forcing those on mortgages to sell their homes to BlackRock (Like in the U.S., Aus, Canada, U.K. ect.) for exponentially devaluing pesos while the central bank holds USD (Instead of resetting the currency like promised, or abolishing the central bank like promised) and those that are hodling on for dear life and caught in a credit vaccuum where they have to continually raise rents in a shrinking adjusted for inflation economy, causing a vicious death spiral.

Homelessness and crime is rampant, the opposite of conservative policy goals. With public services removed from government spending, he's on a highway to a coup equal to Sri Lanka where it was mobs of 100s ripping the wealthy out of cars to pull it apart for scraps.

If shabbot goys are a cancer, Milei is a TURBO GIGAVAXXED strain.

Also, economists are not scientists, they're educated gamblers. Macro always trumps pathetic TA.

>>16329435
>>Actuaries everywhere laughing at you
Actuarians measure known statisticals risks that are so widespread they are expected, like the probability that a driver will actually have a car accident. Thats just statistics you project into the future. Its completely different with investment risks about which you know nothing about
N=1 isnt statistics. N=billions is what actuaries use

>>16328270
>d hedge your risk?
Risk of what?

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can science explain this?

>>16329958
illustrate specifics to prove your point.

>>16327807
evolutionary game theory you faggot.

>>16327796
It's applied mathematics. We apply math to improve decision making. Also econometrics is used to validate models if they are accurate or not. Unlike physics.

>>16330809
My cock+your mom is applied mathematics. Checkmate

>>16330090
>>16330103
The risk that you will be forced to buy gold at a fixed rate in exactly 1 years time. In that 1 year, the price of gold could plummet, but you will still pay the fixed rate.>>16330090
This kind of trade has happened N=billions of times. There is an answer where you eliminate risk (of the trade) and set a reasonable price. And it has very little to do with historical statistics.

>>16330914
I replied to you yesterday about asking what the question was and if I could look up terminology. I know zilch in the finance sector, and it got to a point where I started taking notes about the metric butt ton of terms. I'm barely hanging onto most of them. Please excuse my retardation.
Wouldn't the smart thing to do be to set a premium amount initially? And maybe sell off that contract to another party for the current value when it's high? (If you can do that)

>>16330919
>Finally, an answer
The contract is risky because circumstances change over time. The price of gold may drop, forcing GS to buy at a higher, fixed rate in the future. So we want to do 2 things
>1: eliminate the risk of the contract
>2: set a reasonable price
1) to eliminate future risk, GS should take the opposite side of the contract immediately (closing out the contract). However, we can't simply look for someone who will be buying the exact amount of gold in the exact amount of time, because in general, this entity doesn't exist. So we want to be in the situation where in 1 years time, we owe someone gold. If it's not because we're selling it to them, it's because we're borrowing gold from them. So who can we borrow a gold mining company's worth of gold from? The central bank. Now we have gold, and we owe gold, and we still have an inflow of gold and an outflow of cash in 1 year. So sell the gold we just borrowed from the central bank on the open market. This is the first part of 2) because the market determines a reasonable price. The proceeds from this sale are to be invested at the "risk-free rate". Given the money you can make, the historical variance in the price of gold over 1 year, and the premium you pay to borrow the gold, you can set a price that will guarantee you a profit in the future, while the gold mining company will still think they're getting a good deal.

Last time I was on here I mentioned the "rfr" and someone threw a fit, calling it "retard theory for gullible idios". Not that they didn't have a point, but I think they didn't even understand their own point. The rfr is the rate you will get on something that theoretically has no risk, like overnight index swaps, or treasury bonds after a bunch of tax calculations. If you think a bank will default in 1 day, or that the country will default in 1 year, you have bigger problems. Make the deal, act as usual, and come up with a SHTF plan.

>>16328694
Non citizens SHOULD be charged more, the land and the houses on it are the rightful property of the native people not foreigners.

In socialist economies 'home ownership' doesn't exist, the state can arbitrarily steal your home at any time.

>>16329265
>then the state and its armed forces will come for you in defense of the owner of the private property

Well done, you have identified one of the few legitimate roles of the state.

>>16330952
Thank you for explaining everything. If anything, I've learned that investment requires too much risk for something that I'd do on my own.
>>16330958
Anon, the U.S. has that already with eminent domain laws.

>>16330961
A common theme of the book (and life) is that the best way to get rich is with someone else's money.

>>16330959
>one of the few legitimate roles of the state.
until they come for you for whatever reason, and then you stop being so sure about their legitimacy.

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>>16330959

>>16327955
>Theory asserts 2
>Observe 3
>Adapt theory
>Theory now asserts 3
Hopefully a dumbass like you can understand this extremely dumbed down explanation

>>16330914
>There is an answer where you eliminate risk (of the trade) and set a reasonable price. And it has very little to do with historical statistics.
So how do you determine that specific risk?
Fun thing: theres a word for a probability of something bad happening, Risk, but theres no word for the probability of a good thing happening

>>16330959
>Well done, you have identified one of the few legitimate roles of the state.
Subsidizing property protection is just a form of wealth redistribution from the poor (who pay less in taxes but don't have anything worth protecting anyway) to the rich (who pay more in taxes but get a disproportionate amount of value out of having their factories protected by the full force of the state, up to and including military intervention). Of course, making rich people richer is the explicit purpose of the state, but that doesn't make it legitimate.

>>16330952
>the historical variance in the price of gold over 1 year,
Ok so this is the part where historical statistics come into play, right?

>>16331685
>but that doesn't make it legitimate.
just because you say its illegitimate doesn't mean its going to disappear, you don't live in heaven or some other idealized perfect world and its ridiculous that you presume you deserve to. what did you ever do to deserve that? you're not even perfect yourself, you're nasty and lazy and have all sorts of disgusting habits, if you were in an idealized perfect world the first thing that would happen would be your own elimination

>>16330958
Idiot. The demand and occupancy of foreigners increases the price which means native citizens now pay higher rents and those that cannot afford the increased market prices are now displaced in shittier dwellings, suffer with roommates, revert to parental residences, or outright become homeless. Economic planning is the only way to shut down all immigration and ensure everyone has a home. The last part of your post concedes to this which is why you need abstractions amounting to over lines in the sand.

If someone had control over a country and could plan it, it obviously is possible to build a surplus of houses and give them to citizens. It's not rocket science. It's such an obvious solution. One that is so obvious it would be the actual consequence of almost any political system were it not cucked by mediocrity and democracy that's so intent by midwits to keep the status quo for themselves. For instance, even a 100% free market, successful firms would buy out competitors and become a monopoly. After that they acquire more businesses and become a super monopoly, and such an institution would be more powerful than any government essentially being one. Eventually it would make sense for a total monopoly to establish itself and would see gigantic inefficiencies and productivity losses from distributed individual private property and just buy it all so that shit ends and just keep their worker bees in some standard of living where they are happy and produce and buy.

>>16327796
Its about recognizing trends and charting them against past trends while presuming things will operate as they have, and then making up reasons when things dont go as planned

>>16331771
So if I walked into your house, picked up your TV, and walked out, that would be legitimate because it happened and you weren't around to stop me?

>>16331672
>How do you determine that specific risk
The idea is that you don't really need to. The risk (of the trade) is that the price of gold drops dramatically, and you'll be forced to buy gold at a higher price that was fixed today. By taking the opposite end of the transaction and getting paid immediately, as described in >>16330952
, that risk is eliminated, and you are guaranteed income=(price of gold today)*e^(r-u)t, where r is the "risk free rate" and u is interest paid to the central bank for borrowing gold. At this point, the risk of the trade is eliminated, and GS can quote a price to the mining company to guarantee a profit.
>>16331687
Yes, but as you can see above, it's not really needed.

>>16331983
for the most part the science of economics is about jealousy and envy, its just a bunch of mostly upper middle class rich kids fantasizing about what they would do if they had upper class money.