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Prosperity without growth. Only possible if money has a half life. This slow devaluation of money over time would allow stable prices, growth and more granular
by bawana 7y ago
Prosperity without growth. Only possible if money has a half life. This slow devaluation of money over time would allow stable prices, growth and more granular control of the economy. This kind of money could be electronic and only minted by the fed as FED-COIN. The blockchain would be essential in tracking and controlling each fedcoin. An interesting solution might be for the fed to give fed coin to people as a UBI(Universal basic income). Of course once the fedcoin is spent(undergoes a transaction) it’s value would freeze. the seller of a product would then have regular money. The current mode of the fed being limited to repo operations is blunt. Direct involvement of the fed with the public would allow more direct management of the economy. In addition fedcoin would traceable (anti crime), taxable, and controllable(it might have no value for example in trade for gambling, cigarettes alcohol or other items that are unhealthy)
- tonyedgecombe 7y agoThe easy way to devalue money would be to print more of it.
- bawana 7y agoIt’s not just the printing of money but it’s proper delivery. Currently the fed uses money in repo operations. This was fine back in the day but today it’s different. Since the weaking of glass stegall banks are looking to financial tools for higher roi. Now it seems the fed’s behavior is propping up equities markets while real wages stagnate.
- acoye 7y agoYou would then have to try to ban bitcoin Why would an individual want to keep around an eroding by design currency? > In addition fedcoin would traceable (anti crime) You would only successfully trace the law abiding citizen IMO.
- bawana 7y agoThe incentive to spend it will drive the economy. The ability to prevent its use in ‘bad’ transactions will limit ‘bad’ behavior.
- pif 7y ago> Of course once the fedcoin is spent(undergoes a transaction) it’s value would freeze. I don't get the "of course"...
- bawana 7y agoThe purpose of fedcoin is to increase first order spending. If it’s value continues to diminish w time then no merchant would accept it at face value.
- BlueTemplar 7y agoBitcoin (and the like) are almost completely perfectly traceable* : everyone perpetually sees the accounts and money movement of everyone else. *there are the N=>M persons transactions (aka "mixers") that throw a spanner in the works if you want to follow the money...
- throwawayhhakdl 7y agoThat’s only really a hard problem because of physical cash. If we’re already going electronic only, one could simply use negative interest rates to solve it. When cash is physical people can choose to put it under their mattress instead of a negative interest rate bank.