> Historical experience... I'm going to guess you're citing Worgl, which was a tiny experiment in a small town of 2000. How about the American experiments in 1

> Historical experience... I'm going to guess you're citing Worgl, which was a tiny experiment in a small town of 2000. How about the American experiments in 1932-33? Disasters. Canada? Fail. > We got the credit crunch because of "liquidity spirals" causing lending channels (banks) to hoard cash out of uncertainty. Yes, banks decreased lending due to the uncertainty of collateral upon which those loans are based. > ...brought the whole global economy down... Define that. Economy looks OK to me, especially compared to environment that spawned the economic theories you're working with. You're employed in a place that constantly complains about the need for more skilled labor and hires my idiot friends with MS degrees and zero experience for $150k/year + options. > [Hoarding cash worked for the banks because] fiat cash is non-perishable. If cash was perishable, they would just move it into something that wasn't. Keynes argued this point before me. > Demurrage ... would cause rational actors to seek other liquid investments to put their assets... Yes, I 100% agree. > ... thereby keeping the medium of exchange in circulation and available for lending. Nope. You need buyers. You don't have any. Since your currency rots, the consumers that don't spend it all on goods are either trying to sell it or trying to spend it. The vendors that were willing accept it in exchange for their goods are also trying to sell it. The value plummets and eventually vendors stop accepting it. A chunk of wealth vanishes into the ether and we all get a little more "equal" in the eyes of Occupy. Freicoin is a new modality of an old "-ism". The ultimate goal is the destruction of capital. For your idea to work, you need an authoritarian government to enforce it. Terrifying.