@GeorgeSelgin @lawrencehwhite1 @jp_koning In the context I gave, the answers to the 2 questions play a critical role: they define the market. Prof. White added another: #anonymous #bearer_instruments.
Forgery, issuing, loaning, & taxing have been concerns from the earliest days of State control. Laws have to adapt >
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Forgery, issuing, loaning, & taxing have been concerns from the earliest days of State control. Laws have to adapt >
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@GeorgeSelgin @lawrencehwhite1 @jp_koning - to technology changes, which can radically alter the landscape of the #system.
Long before the specific formal appearance in the Literature¹ʻ², conflicts between open & closed markets were apparent & dealt with. The dilemma didn't go away, they relied on the difficulty >
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Long before the specific formal appearance in the Literature¹ʻ², conflicts between open & closed markets were apparent & dealt with. The dilemma didn't go away, they relied on the difficulty >
/2
@GeorgeSelgin @lawrencehwhite1 @jp_koning - of producing & transporting the object of redemption: gold. This clearing was done in separate, closed markets between banks &/or #nationstates.
Removing that standard shifted the dilemma for them, but we're concerned w/the citizen markets of nations. Suffice it to say, >
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Removing that standard shifted the dilemma for them, but we're concerned w/the citizen markets of nations. Suffice it to say, >
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@GeorgeSelgin @lawrencehwhite1 @jp_koning - #banknotes as bearer instruments were no longer redeemable for anything other than goods & services in regulated mkts, subject to consumer protection laws, etc.
The other hole in the supposedly closed system was addressed in 1982³. Note that I've purposefully highlighted >
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The other hole in the supposedly closed system was addressed in 1982³. Note that I've purposefully highlighted >
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@GeorgeSelgin @lawrencehwhite1 @jp_koning several other elements here to underscore that this is a #complex problem, & cannot be answered by a single linear stance such as "but it's not expressly forbidden".
We're seeing a related ongoing debate regarding regulation of #McCrypto (Wall St version), & the conclusion >
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We're seeing a related ongoing debate regarding regulation of #McCrypto (Wall St version), & the conclusion >
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@GeorgeSelgin @lawrencehwhite1 @jp_koning - will be the same. In these head-on battles, the nationstate as we know it will win, or #collapse.
Bearer instruments categorically share components that require similar #regulation, so the same reasoning applies to all.
In the tight margin of issue/redeem liquidity, >
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Bearer instruments categorically share components that require similar #regulation, so the same reasoning applies to all.
In the tight margin of issue/redeem liquidity, >
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@GeorgeSelgin @lawrencehwhite1 @jp_koning - failures stem from tiny changes in conditions (far from #equilibrium state), so the (US) eliminating tax deductions as well as imposing 1% excise tax on bearer obligations³ʻ⁴ killed the practice of issuing them as a viable business model. Other countries have direct bans.
>
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>
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@GeorgeSelgin @lawrencehwhite1 @jp_koning If it wasn't apparent before, the final nails in this coffin came in 2001⁵.
So while there is no 'outright ban' on things like private banknotes, #bitcoin, or "token stocks", neither is one needed, as every necessary component of them has been corralled into #compliance.
>
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So while there is no 'outright ban' on things like private banknotes, #bitcoin, or "token stocks", neither is one needed, as every necessary component of them has been corralled into #compliance.
>
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@GeorgeSelgin @lawrencehwhite1 @jp_koning Notes:
¹ Gold & Central Banks, Młynarski, 1929
² Gold & the Dollar Crisis, Triffin, 1960
³ Tax Equity & Fiscal Responsibility Act of 1982
⁴ FDIC Trust Examination Manual, Sec 11
⁵ Patriot Act, Title III (amended Money Laundering Control Act of 1986, Bank Secrecy Act of 1970)
¹ Gold & Central Banks, Młynarski, 1929
² Gold & the Dollar Crisis, Triffin, 1960
³ Tax Equity & Fiscal Responsibility Act of 1982
⁴ FDIC Trust Examination Manual, Sec 11
⁵ Patriot Act, Title III (amended Money Laundering Control Act of 1986, Bank Secrecy Act of 1970)
@GeorgeSelgin @lawrencehwhite1 @jp_koning Standard disclaimer:
I'm observing & parsing here, not trying to make normative claims.
I'm observing & parsing here, not trying to make normative claims.
https://twitter.com/MalthusJohn/status/1585658766611079169
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