Tuesday, June 26, 2018

A post on money

A post on money, I simplify it.

State money is not debt


State money buys off the local tax collector and the posse. The monopoly tax power of the stateis accounted for as an abstract ATM fee, amonopoly fee to guv, a tax. The fee should have a futures market, it doesn't/

Bank deposits are ‘hybrid’ liabilities 


Bank deposits are coins left at the bank to earn money during the pricing of insider information.  It is a bet against loans which are cash in advance.  Deposits in advance, loans in advance; the market maker suffer matching risk, market uncertainty known.

If the banker is a currency issuer it may have a positive, or negative, issuance function, bettable. 

Cryptocurrencies are always equity of the issuers 


Crypto means 'technology using digital abgebraics to protect information' .  Currency means bearer asset coin, in this case digital, not paper not stone or dried mud slate.

We have no cryptocurrencies at the moment, we have crypto wallets. What we call cryptocurrency is a misnomer for 'spot on the public ledger', and that is a valuable definition and a valuable thing to own, when transactions costs approach zero.

Important implications


No much, a complete changeover of money to a no arbitrage cash network saves about 1% in ATM fees, not bad.  But government still  fucks up, slightly less badly, now and then.

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