Currency vs money

Assume you rive a car and try to keep the tank 1/2 full.  If you see the line is short at your local gas station, you top off the tank, and hit the red button on your smart card. If you see th line is long, you drive home and hit the green button on your card.

You are making S/L decisions equivalent to real congestion. The process is moving from money to currency and currency to money and you carry daily petty cash. The third party is the pit boss which charges instantaneous interest charges to keep the incoming requests from bunching up. In many cases, the banks major client is the gas stations, and their customers in a risk adjusted pool. That was the old days. In the new days we can do that again, join those two in a joint  S/L pit. I any region we would remove a bunch of congestion costs in gasoline delivery.

The key point is I set banking speed to infinite and transaction costs to zero. That points me to the three color model. Then, add weird boundaries after the fact, like weekends, and work the superposition problem. Sandbox assumes congestion pricing, no OTC markets. OTC are fine, they incur an insurance contract one step above the no arbitrage layer. No problem, I just distinguish the layers.

The model predicts the technology as sure enough, we walk around with handhelds with red and green buttons and down load apps, we open and close accounts. We built automated S/L machines; economy following the economics of congestion pricing.