[ExI] Banking, corporations, and rights (Re: Serfdom and libertarian critiques)

Eugen Leitl eugen at leitl.org
Tue Mar 1 16:40:33 UTC 2011

On Tue, Mar 01, 2011 at 05:07:00PM +0100, Stefano Vaj wrote:

> Commodities do exist. What gives monetary units value is the
> willingness of economic subject to accept the latter in exchange for
> the former...

What I meant is that that purchasing ability of the monetary unit
is periodically measured and renormalized to the resource basket,
using a method which is resistant to gaming the metric (latter is
a hard problem, as people are devious, given enough incentive). 
> > Another problem is that compound interest is linear semi-log plot,
> > while the underlying economy growth isn't. There's a reason why
> > most religion's sacred texts contain some ranting against usury.
> A solution discussed in the thirties, e.g., by Ezra Pound, but never
> implemented, is a form of time-limited money, requiring time stamps

Circulation acceleration was implemented in some regional currencies.

> for its continued validity, ending up in repaying the entire capital.
> This would appear to make usury impossible.

It would be easy to fix usury, just outlaw compound interest. IIRC
the islamic banking system operates that way.

Eugen* Leitl <a href="http://leitl.org">leitl</a> http://leitl.org
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