[MUD-Dev] Reality check ...
archer at frmug.org
Thu Apr 18 09:40:58 New Zealand Standard Time 2002
According to Marc Bowden:
> And your bank account? That's "just data"....linked to real-world,
> physically affective assets. If you close your account, I owe you
> the money the data represents.
Which physical assets?
The practice of backing money, which is a sheet a paper with an
artifically decided number printed on it (the cost of a $100
banknote is about the same cost of a $1), with physical assets
(namely, gold) went out of fashion in all countries at various
points, before or after the WW2.
In the modern world, only a tiny percent of all the money that
circulates has any physical materialisation (in terms of banknotes
and coins). Most of it is exactly that: bits in databases.
As for the money itself in the bank, one of the thing the Fed
regulates is the amount of "virtual money" a bank can create. Bank
routinely give away (in the form of loans) multiples of the assets
they have received. In terms everybody recognise, they "spawn"
gold. All the time.
Vincent Archer Email: archer at frmug.org
All men are mortal. Socrates was mortal. Therefore, all men are Socrates.
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