[MD] No more SOM and no more money!

[Laird Bedore]

Hi David,

You got it! Thermodynamics goes right out the window with the money 
abstraction.

I think it's a natural consequence of the abstraction of perceived 
common value. I rattled on about inflation a bit on  Nov 13. A necessary 
evil, so to speak. I think it's moral because it allows us to 
accommodate the natural human tendency of greed/gathering 
wealth/selfishness/whatever-you-want-to-call-it while minimizing the 
overall impact on the economy. Without inflation, I'd expect the 
economic structure to struggle severely with the competing notions of 
selfishness and overall improvement of society.

-Laird


David M wrote:
> Hi Craig
>
> Everything then except money suffers the 2nd law of thermodynamics
> just to keep the rich in their riches without lifting a finger.
>
> How about a moral justification?
>
> David M
>
> ----- Original Message ----- 
> From: <craigerb at comcast.net>
> To: <moq_discuss at moqtalk.org>
> Sent: Monday, November 20, 2006 4:40 AM
> Subject: [MD] No more SOM and no more money!
>
>
>   
>> [David M]
>> What is the justification for charging interest?
>>
>> Risk:  I lend $100 to 11 people.  I know there'll be one person who 
>> won't/can't pay me back   Therefore, I require $110 from each of the ten 
>> who will pay back, so that my original $1100 is restored.
>> Inflation: $100 will buy me a new suit now.  I lend $100 to someone but 
>> require them to pay
>> back $110 because that's what that suit will cost (because of inflation) 
>> later when they will pay
>> me back.
>> Forebearance:  I lend $100 to someone.  While they have the use of my 
>> money, a $110 suit I want briefly goes on sale for $100.  I require them 
>> to pay back $110 because that's what that suit will cost (because the sale 
>> ends) later when they will pay me back.
>> Inflation = Risk + Inflation + Forebearance
>> That's my riff on interest.  (In memoriam: Milton Friedman, 1912-2006)
>> Craig
>>