Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

Travisher

Anti Money

Recommended Posts

Over the years I felt that there is some factor missing from current economic theories. Today my 12 year old son came up with an idea based on his understanding of physics.

Anti-money like anti-matter.

We were discussing why printing more money and incurring more debt was seen as a way out of debt. he wanted to know what would happen if the printing presses stopped or nations defaulted. And I replied that lots of money would just dissappear to money heaven since it wasn't really a tangible asset.

Taking out a mortgage is you writing a check to the bank, the bank pretend you have the funds to back it in exchange for you paying them a large proportion of your wages. They then sell that dept like it was an asset and 'presto' £150,000 just got created. That debt is then slowly burned off as you 'repay' their pretending you have the wherewithall to afford the house.

Maybe we need to create the concept of anti-money which when brought into contact with money resulted in the destruction of both. The problem is where is all the anti-money, how do we detect it? We know it exists since in spite of vast amounts of printing everyone has less money and is getting poorer.

We already have the concept of money going to 'money heaven' (or maybe to 'money hell'). Perhaps we need a less religious view about what is happening. Maybe there is a black hole at the centre of government that is sucking in all our cash. If so, will it spew out into another dimension or does it just find its way into the pockets of rent seekers? Maybe it gets zapped by anti-money.

Share this post


Link to post
Share on other sites

When you take out that £150,000 mortgage the bank creates both £150,000 of (broad) money and £150,000 of debt.

The former is a liability to the bank, the latter an asset. The integrity of its balance sheet is maintained.

As the debt is repaid, both the money and the debt are annihilated, pound for pound.

Bank debt is the anti money that you seek.

Share this post


Link to post
Share on other sites

Maybe we need to create the concept of anti-money...

Maybe you should meet Mrs XYY - She's been creating loads of this 'anti-money' around a week before payday for some years now...

:(

XYY

Share this post


Link to post
Share on other sites

The problem I have with money is that people always seem to designate it as something that I don't have in abundance.

What we need is not anti money, but the definition of money to be reassigned to something I have a lot of. This could be old newspapers, or empty beer bottles for example.

Share this post


Link to post
Share on other sites

Over the years I felt that there is some factor missing from current economic theories. Today my 12 year old son came up with an idea based on his understanding of physics.

Anti-money like anti-matter.

We were discussing why printing more money and incurring more debt was seen as a way out of debt. he wanted to know what would happen if the printing presses stopped or nations defaulted. And I replied that lots of money would just dissappear to money heaven since it wasn't really a tangible asset.

Taking out a mortgage is you writing a check to the bank, the bank pretend you have the funds to back it in exchange for you paying them a large proportion of your wages. They then sell that dept like it was an asset and 'presto' £150,000 just got created. That debt is then slowly burned off as you 'repay' their pretending you have the wherewithall to afford the house.

Maybe we need to create the concept of anti-money which when brought into contact with money resulted in the destruction of both. The problem is where is all the anti-money, how do we detect it? We know it exists since in spite of vast amounts of printing everyone has less money and is getting poorer.

We already have the concept of money going to 'money heaven' (or maybe to 'money hell'). Perhaps we need a less religious view about what is happening. Maybe there is a black hole at the centre of government that is sucking in all our cash. If so, will it spew out into another dimension or does it just find its way into the pockets of rent seekers? Maybe it gets zapped by anti-money.

naah.the solution is very very obvious.

(fiat)money is,after all only bits of paper with pretty patterns on.

not much intrinsic value in it at all,really.

so it really doesn't matter that a small clique of people have a monopoly on issuance of said bits of paper with pretty patterns on.

everybody just needs to change their perception of what suitable means of exchange is.

....and make sure that it reasonably diversified.

no it's not a problem really, we've been fed the mantra about how competition is good.....same applies to currencies etc.if a more efficient means of exchange gives the present monopoly a run for it's money(excuse the pun) then it's actually not a bad thing....it could bring us a new boom in prosperity.

the problem arises when everything gets too cenrtralised and the few at the top decide to pull up the drawbridge

(not realising that those at the top are getting fat and complacent as all "too big to fail alpha-male" entities do......same principles apply in nature, and frankly sometimes they need a bit of a kick up the pants to tell them their time is now up.....but don't expect them to go quietly...they will fight, and when beaten will retreat to lick their wounds)

they are getting old and stale, they just don't realise it yet........or are in denial.

Share this post


Link to post
Share on other sites

Moving on from the borrowing / lending anti-money / money thing (because that's simple enough) the big problem with money is that, fundamentally, it's a completely and utterly ridiculous idea. It's one thing trying to compare apples and pears, money goes vastly further than that - in other words what it really is is completely and utterly subjective. So changes in perception are arguably anti-money. It's also worth bearing in mind that a lot of talk about efficiency is also mostly subjective, a balance that some people have decided is efficient (since it relies on the subjective assessment of what's actually worth having).

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.