DeLong: In a world--like the one we live in--of mammoth increasing returns to unowned knowledge and to networks, no individual and no community is especially valuable. Those who receive good livings are those who are lucky--as Carrier's workers in Indiana have been lucky in living near Carrier's initial location.The US Sandbox is not closed, it jams predictably and when it jams the usual suspects are there with baskets open.
Step one, deploy transaction cost zero money technology, price endpoint risk.
Step two, deploy trading pit.
The result is the removal of all monetary jams, no human jamming allowed of the money system, no humans allowed, in fact. The remaining task is aggregation of trade surplus to base money, only to the extant base money is needed. Base money allows exchange of cash across group boundaries. It works because pricing end point risk removes the remaining unpriced risk, keeps the sand box closed and we have no need for the debt cartel in NYC.
It means Bernanke's systematic monetary risk always remains what is was, systematic government risk.
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