That bet is looking pretty good right now, although I do recall some central American country accepting Bitcoin or other crypto for the payment of taxes and monetising it. But not sure if it was just a conversion based system which doesn't qualify for one of your bet criteria.
I don't think the creation of money by private banks is as benign as you make it sound. The main reason that land prices have increased so much more than wages since banking deregulation in the 1980s is excessive bank credit growth funneled into real estate. In a full reserve monetary system, only the central bank can create money, so this kind of asset price inflation, and the associated growth in debt to income ratios, would be restrained. As an added benefit, the public subsidy implicit in deposit guarantees for too-big-to-fail banks would not be needed.
Crypto might not make sense as money and in the way that we buy and sell goods day to day but does it still have a place? Could it die as a market place to invest in, yet still perform a financial function? And if it still has a function could it (should it) continue to be a market place? Obviously, people can choose to invest in anything and if we continue to invest in crypto the way people are it could go on for a while but if there is a fundamental flaw then surely it is only a matter of time before the market dies? No doubt there are other examples of markets in history that are no longer.
Hi Cameron.
Just catching up. Thank you for this. Some feedback.
1. I think both token and credit view are correct. We acquire money to exchange later on, no?
2. Table Bank A (before) - the total is 55, not 50, no?
https://substackcdn.com/image/fetch/w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F41b25347-47bc-4d76-91ca-ac172b8c2b87_1718x1560.png
3. What do you think of the proposes USA ecash act?
https://ecashact.us/
That bet is looking pretty good right now, although I do recall some central American country accepting Bitcoin or other crypto for the payment of taxes and monetising it. But not sure if it was just a conversion based system which doesn't qualify for one of your bet criteria.
I don't think the creation of money by private banks is as benign as you make it sound. The main reason that land prices have increased so much more than wages since banking deregulation in the 1980s is excessive bank credit growth funneled into real estate. In a full reserve monetary system, only the central bank can create money, so this kind of asset price inflation, and the associated growth in debt to income ratios, would be restrained. As an added benefit, the public subsidy implicit in deposit guarantees for too-big-to-fail banks would not be needed.
Crypto might not make sense as money and in the way that we buy and sell goods day to day but does it still have a place? Could it die as a market place to invest in, yet still perform a financial function? And if it still has a function could it (should it) continue to be a market place? Obviously, people can choose to invest in anything and if we continue to invest in crypto the way people are it could go on for a while but if there is a fundamental flaw then surely it is only a matter of time before the market dies? No doubt there are other examples of markets in history that are no longer.
So what are your thoughts about usury?
If all money is created as DEBT, how is the interest paid? - More DEBT!
Interesting - I would like to hear your view on usury.
All money is created as DEBT with interest?
Where does this interest come from? - More DEBT money?