Ancalagon
02-27-2009, 06:43 PM
Hello
I think we can all agree that no one fully understands the economy. I had an idea the other day that may help a bit, and I thought I would share it with you. It deals with the origin of money.
Banks can lend more money than they have on hand (a system known as "fractional reserve"). So if a bank lends you 1000$ and deposits it in your account... odds are, the money doesn't exist. The bank literally creates it out of thin air. It turns out that the origin of most money is debt... at least, that's how most economist and bankers see things. When your debt is repaid, the money *vanishes*.
This system bothers me, because it seems like an insane way to run an economy. That, and I don't like things appearing out of thin air. A few days at work I had a sudden insight that jolted me, and well, here it is.
Money doesn't appear from thin air... the money comes FROM THE FUTURE. A future version of you gave money to the bank, and the bank send it through "time conduits" to the present version of you. Interests are really a fee to use the time conduit.
Now I don't mean that actual physical objects like coins and bills travel through time. I mean *money* travels through time. A 20 dollar bill isn't money, it's an object that represents money. The term "time conduit" is not a physical device, it's a term I use to describe my idea.
You might say "aha! what if I die in the future and never repay my loan!". Well then, the *bank* sends you the money. If money simply was created out of thin air, the banks wouldn't really care about loans not being repaid... but no, they *must* feed the time conduit, so they have to use their own money.
What about depositing money in a bank - does that send the money into the future (ie forward in time)? Well yes. But the lint under your bed goes forward in time too, as does everything else, so there is nothing special about that.
With this in mind, it shows the dangers of over-leveraging your economy. The prosperity of recent years was borrowed from the future - this future is now become the present. Our money is being sent back in time, sucked by the time conduits, and that's why things suck.
Ancalagon
I think we can all agree that no one fully understands the economy. I had an idea the other day that may help a bit, and I thought I would share it with you. It deals with the origin of money.
Banks can lend more money than they have on hand (a system known as "fractional reserve"). So if a bank lends you 1000$ and deposits it in your account... odds are, the money doesn't exist. The bank literally creates it out of thin air. It turns out that the origin of most money is debt... at least, that's how most economist and bankers see things. When your debt is repaid, the money *vanishes*.
This system bothers me, because it seems like an insane way to run an economy. That, and I don't like things appearing out of thin air. A few days at work I had a sudden insight that jolted me, and well, here it is.
Money doesn't appear from thin air... the money comes FROM THE FUTURE. A future version of you gave money to the bank, and the bank send it through "time conduits" to the present version of you. Interests are really a fee to use the time conduit.
Now I don't mean that actual physical objects like coins and bills travel through time. I mean *money* travels through time. A 20 dollar bill isn't money, it's an object that represents money. The term "time conduit" is not a physical device, it's a term I use to describe my idea.
You might say "aha! what if I die in the future and never repay my loan!". Well then, the *bank* sends you the money. If money simply was created out of thin air, the banks wouldn't really care about loans not being repaid... but no, they *must* feed the time conduit, so they have to use their own money.
What about depositing money in a bank - does that send the money into the future (ie forward in time)? Well yes. But the lint under your bed goes forward in time too, as does everything else, so there is nothing special about that.
With this in mind, it shows the dangers of over-leveraging your economy. The prosperity of recent years was borrowed from the future - this future is now become the present. Our money is being sent back in time, sucked by the time conduits, and that's why things suck.
Ancalagon