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Sigh You eat at a restaurant, and offer to pay with a barrel of oil (or bond). The restaurant sues, and the judge orders you to pay money, and the restaurant

by parsimo2010 7y ago

Sigh You eat at a restaurant, and offer to pay with a barrel of oil (or bond). The restaurant sues, and the judge orders you to pay money, and the restaurant does not have to accept the barrel of oil. You were not able to spend the oil (or bond). You eat at the same restaurant, and offer to pay with a Titan. The restaurant refuses, and sues. The judge orders you to pay with money, and you offer up the Titan again. The restaurant must either take the Titan, or give you the meal for free. You were able to spend the Titan. Businesses can decide whether or not to accept certain denominations at the point of sale, but if all I have is a $100 bill and a service has already been rendered, they can either take the $100 bill then, or sue me and take the $100 bill later. That is not the case with a barrel of oil. So for the last time: no, you cannot spend a barrel of oil like you can a 100 million GBP note. You cannot spend a bond like you can a Titan (this is the distinction that set off this chain of comments). Banknotes issued by the Bank of England are legal tender in the UK, bonds are not.

thaumasiotes 7y ago
> Sigh Really solid argument here. I notice you switched my example from a parking garage to a restaurant. The normal model of a restaurant meal is that the restaurant gives you food, and then, later, you owe them money. Without settlement, you owe them a debt. You were only able to spend the Titan by tricking the restaurant into giving you free food. It's very rare for commercial transactions to take this form, of complete delivery by one side followed only after delivery is complete -- and the delivered goods have been destroyed -- by any payment whatever. The model of a parking garage, by contrast, is that you give them your car and then, later, you want to buy it back. Until you choose to pay in a manner they accept, they'll keep your car. This isn't much of a victory for you. > So for the last time: no, you cannot spend a barrel of oil like you can a 100 million GBP note. Once again, yes, you can. Try to spend a 100 million GBP note. You'll find that you can't. (Among many other more serious problems, how would the other party make change?) It's easier to spend the barrel of oil, and you do that on the same terms -- raw negotiation -- that apply to the note.

thaumasiotes 7y ago

> Sigh Really solid argument here. I notice you switched my example from a parking garage to a restaurant. The normal model of a restaurant meal is that the restaurant gives you food, and then, later, you owe them money. Without settlement, you owe them a debt. You were only able to spend the Titan by tricking the restaurant into giving you free food. It's very rare for commercial transactions to take this form, of complete delivery by one side followed only after delivery is complete -- and the delivered goods have been destroyed -- by any payment whatever. The model of a parking garage, by contrast, is that you give them your car and then, later, you want to buy it back. Until you choose to pay in a manner they accept, they'll keep your car. This isn't much of a victory for you. > So for the last time: no, you cannot spend a barrel of oil like you can a 100 million GBP note. Once again, yes, you can. Try to spend a 100 million GBP note. You'll find that you can't. (Among many other more serious problems, how would the other party make change?) It's easier to spend the barrel of oil, and you do that on the same terms -- raw negotiation -- that apply to the note.