Re: digital cash

[rarachel@prism.poly.edu (Arsen Ray Arachelian)]

> Not only ridiculous, but impossible.  Even with one currency, it's
> impossible.  Let us assume that all dollars have the same value.
> (This ends up not being true with certain types of intervention--I
> digress.)  Now, in the case of a Great Depression, say, where there is
> actually less economic output, the number of dollars has not
> decreased, and so each dollar buys less.
> 
> It's real value which is important in this case, not nominal value.

Absolutely.  What most folk don't realize is that >ALL< money is inherently
useless until all the folks involved in its trade deem it of value and of
use.  Money sitting in one's pocket is also useless.  Sure we put the little
suckers in savings and make interest off'em, but only because the bank
moves them around for us, lending to those who don't really need it. :-)

Money is analogous to electrons.  Moving it around, it does a lot of work
for us.  Keeping it as static electricity is totally useless.  Putting it
in a capacitor, has some use.  Sometimes you need a cartain ammount of
electrons to be able to do a certain ammount of work, however if you leave it
there forever, the charge will eventually leak out (like inflation...)

Depressions and such are the result of money not moving anywhere... there's
a really cool story somewhere by Aliester Crowley on the adventures of a
particular bit of paper money exchanging hands, getting everyone involved
in its adventures to either do work or services, and to provide work and
services in return...

(That's why I believe those who wish to do away with money are idiots.
Without it, there's no common denominator on what a service, object or
whatever is worth.  No real way to establish the worth of something. Sure
there's barter, but its far too limited as a means of circulating services
and goods...  Money, paper, gold, or digital is only worth what we tell it
to be worth...  hell, if it were legal (and safe) we'd be using plutonium
coins instead of money... :-)

Just my digitial $0.02...


 
> There is no guarantor of value.  If there were ever claimed one, I
> would be suspicious that it was backed by coercion.
> 
> Eric
>