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OhReally

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  1. Package dealing is one of the things that I am arguing against. I believe that the current thinking on inflation is mistaken or evasive because it lumps together superficial characteristics of 1) economic condition and 2) resulting from increases in ratio of currency to goods and/or services. These statements about inflation are true; it is an economic condition and it affects an arithmetic ratio. But these are not fundamental and therefore wrong as a definition. The question is how. How do people go about changing the amount of money in society? In this case, how is the supply incr
  2. Yes and no. But it is accurate to state that many of the attributes of our nature are vitality directed or goal directed as O'ists would say. These happen automatically like the beating of one's heart or the grumblings of one's stomach. Selfishness is rooted in choice as in to be selfish or to be altruistic. Our biological makeup continually thrusts to be alive. The choice is what to do about it.
  3. Let me change the context completely by asking that you consider a brand new country whose politics and ethics are Objectivist, pure and simple. I have two scenarios to ask you about. Here's the first and I'll follow up with the second one, later. Say that in this first scenario you open a fractional reserve bank (FRB) without financial capital; you had enough capital to build your brick-and-mortar Bank and have enough left over to finance its daily operating expenses for a healthy period of time but you don't have any financial capital beyond that to use in lending. I am only saying
  4. My Dad used to sum up the dealings my siblings, me and friends had with each other by saying, "Anything shiny, anything sweet". By around the same age as the 5-year old you cite, my siblings and I would trade things with each other and our friends. If we couldn't find a way to make the trade directly, we scrambled for something that would be acceptable. We hadn't conceptualized the double coincidence of wants to any greater depth but we solved it on the spot by saying, "Well if you don't want this, then how about this over here." With that, we discovered the value of bubble gum, Life Saver
  5. Nicky: I thank you for your reply and insights into Paypal. I am curious about it because I don't understand why you used Paypal to exemplify the service I've described. As I understand them, Paypal provides payment services and bases them on a credit card that its customer has with another institution. I also understand that they provide transfer services by acting as their customer's authorized intermediary transferring his money from his Bank to another party. Like a depository, Paypal provides these services. But unlike a depository, Paypal does not safekeep its customer's money.
  6. Nicky: Assume the case of a private financial institution in a free society. For ease of discussion, let me say that the institution is a Bank but it is only a depository who has elected by its published charter never to make loans but instead only accepts money deposited by its customers. (It's source of revenue then is limited to the fees it can command for the storage and safekeeping of its customers' money, along with other fees for such services as transfer and account openings and renewals.) So, the Bank will provide utmost safety of the deposited money. Upon demand by a note holder,
  7. sN: Thank you for the link to "bailment". I see there that deposit is listed as a type of bailment. Also I want to clarify one point under my above proposed deposit contract with you (my hypothetical Banker), The point is that I am not looking to loan you my money (that would be a different contract between you and me) but I am looking to make transactions easier and safer for me with a money substitute and to extend the same ease and security to any holder of your note. WIth that, any note holder presenting your note back to you can demand possession and ownership of the coin represented
  8. sN: Thank you for your insights. Suppose again in a free market, you are the Banker and I have the money. Say instead of those 100 Eagles, I have 100,000 of them and I propose to you to start a new tradition in your Bank. Instead of loaning you my coin as your creditor, I want you to safely keep my property, the Eagles, not in safety deposit boxes but in your vault. I want you to give me denominations of notes, each denomination equal to the same number of coins and redeemable in Eagles upon my demand. I want you to honor redeeming your notes on demand not only for me but for any note hol
  9. SN: Thank you for your reply. Before you say more, I have a question about ownership. Let's assume a free market. Say that you're my fractional reserve banker and I deposit 100 gold Eagle coins at your bank. You and I agree that the coins are not to be kept 100% in reserve by you as my bailee. You give me 100 notes, each note guaranteeing the holder of the note one gold Eagle upon its presentation to you. My question is who owns the coins? You the fractional reserve banker or the note holder(s)?
  10. Regarding your text that I highlighted in bold, I understand it. A Bank accounts for its Customer's deposit of money, elects to keep some of it in reserve at the Bank and lends out the rest of it. Here, real money comes into the Bank and a part of the real money is being lent out by the Bank. But I am unclear about the rest of your thoughts because you say that the money lent by the Bank and "the steady value that comes from other people providing layers of guarantee gives it [the loan of real money?] "money-like" characteristics, where other people are willing to accept bank-notes as near
  11. I find another Bank to do business with. But would you consider doing business with such a Bank that makes your demand deposit fully available to you but (by agreement between the two of you) loans out part of your deposit?
  12. Harrison: As a form of money what economic good would you chose to represent the creation of some real value? Thoughts?
  13. As to agreed-upon procedure between me and the Bank, are you referring to something like these? I deposit my money in a demand account with the expectation and agreement with the Bank that all of my deposit is available on demand to me and only me and can't be lent out to others. On the other hand, I deposit my money for the long term and receive say a CD from the Bank and by agreement between me and the Bank, the Bank can lend out my deposit? Or are you referring to some other types of agreement?
  14. Nicky: Regarding your statement about financial institutions issuing their own currency, are you referring to their issuing money substitutes like notes, check deposits, CDs, credit cards and the like?
  15. Yes, I am focusing on what fundamentally explains inflation. As I've been thinking about it, I think that it is a form of violating property rights, in particular by forcing an increase in the supply of money.
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