Suncho

29 ms·

151.
by Suncho 10y ago
Actually, that's not quite how the expiration works. When it expires, it turns into regular old US Dollars, which are even better! But, if you have GD or regular USD, when given the choice, would you rather spend something that'
152.
by Suncho 11y ago
Basic income will certainly affect price levels in uneven and unpredictable ways. I can understand why you're concerned. The same is true of free trade. There are always going to be winners and losers. But, as far as the macroecono
153.
by Suncho 11y ago
After living for 30 days, GD automatically converts into USD. Every time you spend it, GD's Lifetime resets back to 30 days. This is how we enforce the peg. It is the key innovation of Gresham Dollar.
154.
by Suncho 11y ago
7. How is this not a Ponzi scheme? https://en.wikipedia.org/wiki/MMM_%28Ponzi_scheme_company%29... Hmm. How would it be? Which part of it looks like a Ponzi scheme to you?
155.
by Suncho 11y ago
6. The "Gresham's Law" bit seems to apply to holders. The key being that people will spend the currency faster if they lose faith in it. But this assumes that the _sellers_ will accept the currency. A loss of _seller_ accept
156.
by Suncho 11y ago
5. How do you plan to crack this market? The existing consumer revolving credit market is pretty resistant to entry. The two biggest players, Visa and MasterCard, both originated as large bank-based credit cards (BankAmericard => Visa a
157.
by Suncho 11y ago
Another effect is that not only would GD be viral, BI inside this system itself would become viral. By "viral," do you mean "inflationary"? I'm not sure how useful it is to compare student loans to basic income.
158.
by Suncho 11y ago
GD, if it's meant to create distrust and runs, almost by definition must over time lose its value compared to USD. Gresham Dollar is not meant to create distrust and runs. It's meant to withstand distrust and the psychology beh
159.
by Suncho 11y ago
China and Japan each have their own currencies. If they wanted to provide a basic income right now, they could pay for it by issuing new Yuan or Yen. The Gresham's Law hack is for bootstrapping a new currency, so they don't need
160.
by Suncho 11y ago
In normal times, 100% of GD (subject to the Activation Cap ) converts to USD and none of it rolls over. Only during Disruption is some of the GD held back from converting. And other weird stuff is going on during Disruption too.
161.
by Suncho 11y ago
By design, as you say, Gresham Dollar will at first be considered an inferior currency to USD. This is important for the Gresham's Law effect. All businesses have expenses and there's no reason why a given business wouldn't
162.
by Suncho 11y ago
We can't force merchants to accept GD payments, but they have a fairly strong incentive to. When we first launch, every GD in existence will be backed 100% by our USD reserves. It's free money. All of the GD the merchants recei
163.
by Suncho 11y ago
We will compel sellers to accept GD at par with USD through a legal contract. There's legal force, so Gresham's law can apply. We're not going to be buying back GD at par. Given that GD will be less valuable to sellers than
164.
by Suncho 11y ago
4. Who's left holding the bag? If this collapses, who loses out? Presumably, merchants. Is there any provision made for this possibility? The investors are left holding most of the bag. In the end it will look like what we did amoun
165.
by Suncho 11y ago
3. What are the barriers to entry? The barriers to entry are primarily intellectual. I've never heard of this idea before. Most people (including economists and politicians) would balk at the suggestion that the United States could
166.
by Suncho 11y ago
2. Where does the investment for USD come from? The USD reserves are crowd funded through the selling of Future Gresham Dollars. I've described FGD in other comments. Our USD reserves also increase any time someone converts USD to GD
167.
by Suncho 11y ago
1. How do you make money doing this? I don't profit. The investors do. They pay USD to buy a certain amount of GD deliverable at a specific future date (the Transition ) that's the same for everyone. Since all FGD becomes G
168.
by Suncho 11y ago
I don't have many ideas that would help get it circulating. Maybe look for smaller communities that source a lot of supplies locally and launch pilot programs there. You could get the whole community on-board since you could be inject
169.
by Suncho 11y ago
The costs of operation and infrastructure will not be trivial, especially as the project grows beyond the bootstrapping phase. Hmm. These costs would be trivial compared to the total amount of USD we have in our reserves and the total am
170.
by Suncho 11y ago
I think these sort of measures could be built into the algorithms behind the management of the currency. That's the idea. I'd like to set it up so that everyone can see that we couldn't abuse the system even if we wanted t
171.
by Suncho 11y ago
(1) Where are people going to go to learn how obtain GDs, or is the plan to have other adapters reify GD first and then have it move on to others? Depends on the people. GD comes into existence through the basic incomes that basic accoun
172.
by Suncho 11y ago
The glib answer I usually give people is that it would be great if someone stole my idea because then the world's economy would fix itself without my help. I'd just go back to having fun and doing my own thing. I've long ass
173.
by Suncho 11y ago
Let's assume you successfully created a new currency and let's assume it does not result in hyperinflation. What do you mean by "success"? For Gresham Dollar to have truly succeeded, it will have ultimately become be
174.
by Suncho 11y ago
You incentivize merchants with new customers that will shop exclusively at GD accepting merchants. After you have these merchant agreements in place, it will then be easier to incentivize the merchant suppliers to accept GD in order to sta
175.
by Suncho 11y ago
If we succeed, we'll control the world's money supply. Along the way, we'll likely use a small, publicly-disclosed portion of the investments we receive for salaries and other expenses. We'd switch over to spending onl
176.
by Suncho 11y ago
You're right. Especially at the beginning, merchants won't find many other businesses who will take their GD, so even if they wanted to spend it, their options would be limited. But they do have a few options, including: 1. Merc
177.
by Suncho 11y ago
Yes. That's exactly right. The Fed has a mandate to promote maximum employment. But employment isn't the only (or even the best) way to provide people incomes. In the last post I wrote on my blog before I came up with this idea
178.
by Suncho 11y ago
Well the idea is that once Gresham Dollar gets circulating, the rate at which we dip into our USD reserves will be far less than the amount of GD in circulation, so we'd be able to sustain more total GD than we have USD in reserves. Yo
179.
by Suncho 11y ago
Thanks for grilling me on this. It's very helpful. So again, you'll be co-opting merchants into a credit issuing agency. That's certainly one way to think about it. Things like store credit and gift cards are pretty stand
180.
by Suncho 11y ago
OK, so if the maturity resets you are at least in a position to be able to issue nominal assets faster than people can claim your liabilities in real dollars, but that doesn't mean you're legally solvent. Hmm. I don't know

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