tag:blogger.com,1999:blog-4069310043220280385.post5053285731492062550..comments2016-03-28T00:23:47.905+02:00Comments on soffisticated: Why deposits never are moneyDr. Renée Menéndezhttp://www.blogger.com/profile/01162247969800974090noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4069310043220280385.post-47914895140708411612015-05-18T14:43:01.271+02:002015-05-18T14:43:01.271+02:001. Thats easy, because they settle debts by handin...1. Thats easy, because they settle debts by handing over the item which was contracted. It doesn´t matter if there is no HPM, what is essential is, that there is a contracted object!<br /><br />2. Thats easy, because any transfer of BTC must have a reason and the reason is a contract, which results in a BTC-debt. If you have a BTC-debt you must hand over BTC. <br /><br />Note: to own a BTC means to own a information which can be used to settle a BTC-debt. This is the same as a 100 bank note, which is also only a carrier of information (printed HPM-information from the central bank), that the owner of this information is able to settle a debt of 100. A deposit is only a right to make a disposition over HPM-information, which the bank as a payment agent must fulfill. Even within a bank the ownership of these rights must be moved, which means, that the right (claim) to dispose over HPM has changed the owner.<br /><br />The bottom-up approach only works within groups where everybody is known to everybody. Large societies are characterized by anonymity which leaves the bottom-up approach (also the neoclassical economic theory) essentially unworkable.Dr. Renée Menéndezhttps://www.blogger.com/profile/01162247969800974090noreply@blogger.comtag:blogger.com,1999:blog-4069310043220280385.post-86278957829928999032015-05-12T18:33:49.006+02:002015-05-12T18:33:49.006+02:00I see the point you make.
But how did people settl...I see the point you make.<br />But how did people settle their debt let's say 150 years ago with no central bank (= no hpm)? <br />How does paying with Bitcoin or any other #fintech "currency" fit in your theory? Do we end up in a barter system if we start using those? <br />My point is, the system is designed bottom-up. Central-bank issued hpm is useful to document flows of the tier1 (user) level. I don't see (yet) it's the only way to pay down debt. Anonymoushttps://www.blogger.com/profile/00458854955868524239noreply@blogger.com