Thursday, November 23, 2017

Why does acapulco coin need bitcoin?

It is an economic law, or me speculating an economic law.

Avoiding central banks and travel are closely coupled industries.  People travel to take advantage of currency arbitrage, they move business for tax arbitrage.  Central banks and central planning are big drivers of travel and immigration.

If central banks operated with smaller implied error the  the ideal standard for acapulco coin becomes frequent flyer coin.  Frequent flyer coin is the best exogenous predictor of acapulco hotel prices. Frequent flyer coin is also subject to central banker bit error, especially regulation of airlines.

An independent frequent flyer discount coin makes a lot of sense, created by the association of airlines.  With small error, anyone could look at the value of airline coin and know the local resource cost of the typical tourist trip. A fisherman in Maine knowing to good accuracy how many fish caught get one week end in Bermuda.  Likely a good idea even in the face of CB matching error.

How can we reduce central bank matching error?

Make their process explicit and tradeable, the three color pit with the 'aristocracy of government funders'.    There is an equilibrium that allows poor people to pay just enough tribute to wealthy people to insure government interest payments are met.  The amount of tribute drops in the sandbox as much of the debt cartel gets automated. The three color pit is a good idea, we can couple monetary zones.

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