4 ms·

If it is Universal as you say, it cannot be zero-sum. If it is not zero-sum, what is it? Fueled by debt? Highest income pay more taxes (on income or assets)? In

If it is Universal as you say, it cannot be zero-sum. If it is not zero-sum, what is it? Fueled by debt? Highest income pay more taxes (on income or assets)? In that case it is tecnically not Universal. You can't have money ex-nihilo.

anticensor 7y ago
Debt-based bond-backed money is already ex-nihilio. UBI-backed money might exist and the monetary system would have been much simpler.
- gumby 7y ago
  > Debt-based bond-backed money is already ex-nihilio Every time you use a credit card you increase the money supply, though it is sterilized when you pay your bill at the end of the month (or when you default). Arguably it's not really ex-"nihilo" as there is economically valuable activity (extension of credit) which is paid for via interest. Increasing the money supply to match economic activity (as best it can be measured) prevents deflation, among other things, and debt is the tool used, surely better than simply running the presses.
  - anticensor 7y ago
    You would replace the interest ratio by resupply ratio (feeding expenditure taxes and income taxes for income exceeding UBI back into supply) in an UBI-backed monetary system. You could easily target zero inflation per capita in such a system.
    - gumby 7y ago
      Yes, this is a good idea. The current approach uses banks as the interface, hence the use of debt. Purely a mechanical artifact, not a moral issue as it is often taken by people fixated on microeconomics.
gumby 7y ago
In macroeconomics, you can have a liquidity crisis, and the large number of poor is a liquidity crisis which also affects business. Remember money has multiple functions of which store of wealth is only one (and it's not the only instrument used for that purpose). At a microeconomic level yes, this seems absurd, but microeconomics and macroeconomics are disciplines as different as physics and chemistry: the emergent macrobehavior is quite different from the micro behavior and calculation based on micro is not tractable.

anticensor 7y ago

Debt-based bond-backed money is already ex-nihilio. UBI-backed money might exist and the monetary system would have been much simpler.

gumby 7y ago
> Debt-based bond-backed money is already ex-nihilio Every time you use a credit card you increase the money supply, though it is sterilized when you pay your bill at the end of the month (or when you default). Arguably it's not really ex-"nihilo" as there is economically valuable activity (extension of credit) which is paid for via interest. Increasing the money supply to match economic activity (as best it can be measured) prevents deflation, among other things, and debt is the tool used, surely better than simply running the presses.
- anticensor 7y ago
  You would replace the interest ratio by resupply ratio (feeding expenditure taxes and income taxes for income exceeding UBI back into supply) in an UBI-backed monetary system. You could easily target zero inflation per capita in such a system.
  - gumby 7y ago
    Yes, this is a good idea. The current approach uses banks as the interface, hence the use of debt. Purely a mechanical artifact, not a moral issue as it is often taken by people fixated on microeconomics.

gumby 7y ago

In macroeconomics, you can have a liquidity crisis, and the large number of poor is a liquidity crisis which also affects business. Remember money has multiple functions of which store of wealth is only one (and it's not the only instrument used for that purpose). At a microeconomic level yes, this seems absurd, but microeconomics and macroeconomics are disciplines as different as physics and chemistry: the emergent macrobehavior is quite different from the micro behavior and calculation based on micro is not tractable.