Matt Mullenweg wants to start a bank
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Pelle Braendgaard
Aug 21, 2009, 11:49:39 AM8/21/09
to agile-banking
http://ma.tt/2009/08/starting-a-bank
I am in agreement with most of what he says, but please when thinking
about starting a new bank, please forget about checks. Checks need to
die, there is no good reason that this 16th century paper technology
still exists.
P
--
http://agree2.com - Reach Agreement!
http://extraeagle.com - Solutions for the electronic Extra Legal world
http://stakeventures.com - Bootstrapping blog
wizardwatson
Aug 21, 2009, 12:10:30 PM8/21/09
to agile-banking
In this thread in the RippleUsers Group:
http://groups.google.com/group/rippleusers/browse_thread/thread/372ad9c667922412?hl=en#
...I discuss how Ripple could be used to run the books for an actual
reserve-based bank. The thread is poorly titled but that's the
essence of what it's about. The concept was a premature distilling of
later, more complete, work on decentralized monetary/banking systems.
What Matt ignores or assumes in his description of an ideal bank is
the substance of the bank itself. What are people actually
depositing, and what is your doing with the deposits? Banking system
and monetary system are far from separate, especially in the Federal
Reserve System. But he is right on target, in his way of talking
about ideal bank practices. Essentially he's discussing sound money
practices. He even says "We take your money and put it in a vault. We
don’t need the million-dollar bonus geniuses on Wall Street to do
that. SafeBank. Bank, safe." This is how a 100% reserve-backed bank
would talk.
People want sound, fair, just money and banks. Because of the unique
way in which economics is situated among the arts and sciences, I
don't think people always find it easy to communicate and agree on
economic ideas when it comes to strategic decisions. For observing
past phenomenon yes, there is general agreeance, but for present
decisions, agreement and cooperation are hard to come by.
-David Watson
On Aug 21, 10:49 am, Pelle Braendgaard <pe...@stakeventures.com>
wrote:
http://groups.google.com/group/rippleusers/browse_thread/thread/372ad9c667922412?hl=en#
...I discuss how Ripple could be used to run the books for an actual
reserve-based bank. The thread is poorly titled but that's the
essence of what it's about. The concept was a premature distilling of
later, more complete, work on decentralized monetary/banking systems.
What Matt ignores or assumes in his description of an ideal bank is
the substance of the bank itself. What are people actually
depositing, and what is your doing with the deposits? Banking system
and monetary system are far from separate, especially in the Federal
Reserve System. But he is right on target, in his way of talking
about ideal bank practices. Essentially he's discussing sound money
practices. He even says "We take your money and put it in a vault. We
don’t need the million-dollar bonus geniuses on Wall Street to do
that. SafeBank. Bank, safe." This is how a 100% reserve-backed bank
would talk.
People want sound, fair, just money and banks. Because of the unique
way in which economics is situated among the arts and sciences, I
don't think people always find it easy to communicate and agree on
economic ideas when it comes to strategic decisions. For observing
past phenomenon yes, there is general agreeance, but for present
decisions, agreement and cooperation are hard to come by.
-David Watson
On Aug 21, 10:49 am, Pelle Braendgaard <pe...@stakeventures.com>
wrote:
> http://ma.tt/2009/08/starting-a-bank
>
> I am in agreement with most of what he says, but please when thinking
> about starting a new bank, please forget about checks. Checks need to
> die, there is no good reason that this 16th century paper technology
> still exists.
>
> P
>
> --http://agree2.com- Reach Agreement!http://extraeagle.com- Solutions for the electronic Extra Legal worldhttp://stakeventures.com- Bootstrapping blog>
> I am in agreement with most of what he says, but please when thinking
> about starting a new bank, please forget about checks. Checks need to
> die, there is no good reason that this 16th century paper technology
> still exists.
>
> P
>
Pelle Braendgaard
Aug 21, 2009, 1:00:19 PM8/21/09
to agile-...@googlegroups.com
This is quite interesting. I think by having these small distributed
reserves it would make it a lot easier for something like Ripple to
take off. The trend might be for these reserves to grow until each one
becomes to large. Maybe a set member limit for each node or something
like that would ensure that the reserve stays under the control of the
members.
P
reserves it would make it a lot easier for something like Ripple to
take off. The trend might be for these reserves to grow until each one
becomes to large. Maybe a set member limit for each node or something
like that would ensure that the reserve stays under the control of the
members.
P
wizardwatson
Aug 21, 2009, 2:47:04 PM8/21/09
to agile-banking
What you are envisioning as "small distributed reserves" I see as very
simple equity shares in land. You have to buy into them the same way
you would buy into precious metals like gold and silver.
To me, land is much better as reserve ( though admittedly not the
easiest thing to explain ). You can't steal it. It's value is fairly
stable.
This is what I've been preaching anyway. And with the internet and
sufficient collaboration we could have a worldwide land equity based
currency system that was stable and solved the current systems
problems within a couple years.
I think this Matt guy has the right observation and a good
communication, but is obviously new to thinking about the means. I
wish I could get the support that this guy got in his blog.
Everyone's ready to join his bank!!
Everyone's good at different things and I guess we just try harder at
what we're bad at and spend more time on it. Try to remember that we
spend more time on it, because we're worse at it not better.
On Aug 21, 12:00 pm, Pelle Braendgaard <pel...@gmail.com> wrote:
> This is quite interesting. I think by having these small distributed
> reserves it would make it a lot easier for something like Ripple to
> take off. The trend might be for these reserves to grow until each one
> becomes to large. Maybe a set member limit for each node or something
> like that would ensure that the reserve stays under the control of the
> members.
>
> P
>
>
>
> On Fri, Aug 21, 2009 at 12:10 PM, wizardwatson<wizardwat...@gmail.com> wrote:
>
> > In this thread in the RippleUsers Group:
>
> >http://groups.google.com/group/rippleusers/browse_thread/thread/372ad...
> >> --http://agree2.com-Reach Agreement!http://extraeagle.com-Solutions for the electronic Extra Legal worldhttp://stakeventures.com-Bootstrapping blog
simple equity shares in land. You have to buy into them the same way
you would buy into precious metals like gold and silver.
To me, land is much better as reserve ( though admittedly not the
easiest thing to explain ). You can't steal it. It's value is fairly
stable.
This is what I've been preaching anyway. And with the internet and
sufficient collaboration we could have a worldwide land equity based
currency system that was stable and solved the current systems
problems within a couple years.
I think this Matt guy has the right observation and a good
communication, but is obviously new to thinking about the means. I
wish I could get the support that this guy got in his blog.
Everyone's ready to join his bank!!
Everyone's good at different things and I guess we just try harder at
what we're bad at and spend more time on it. Try to remember that we
spend more time on it, because we're worse at it not better.
On Aug 21, 12:00 pm, Pelle Braendgaard <pel...@gmail.com> wrote:
> This is quite interesting. I think by having these small distributed
> reserves it would make it a lot easier for something like Ripple to
> take off. The trend might be for these reserves to grow until each one
> becomes to large. Maybe a set member limit for each node or something
> like that would ensure that the reserve stays under the control of the
> members.
>
> P
>
>
>
> On Fri, Aug 21, 2009 at 12:10 PM, wizardwatson<wizardwat...@gmail.com> wrote:
>
> > In this thread in the RippleUsers Group:
>
Andreas Pizsa
Aug 23, 2009, 11:24:47 AM8/23/09
to agile-banking
> You can't steal it.
I think that land is actually pretty easy to steal - all you need is a
democratic majority that passes a law. And while you can hide metals,
you can hardly hide land.
A.
wizardwatson
Aug 24, 2009, 8:23:51 AM8/24/09
to agile-banking
I see your point and you're right, but now you're arguing about the
unwillingness of governments to respect the rule of law within their
own borders. Even if I believed from the standpoint of a currency
that it was as faulted as precious metals their are other reasons I
myself would use land.
But this misses the point I think, in that no one in the network has
to use the same type of reserves. I can use land over here in Kansas,
you can use whatever you want wherever you're at. A decentralized
distributed reserve system would be heterogenous in the types of
reserves. I can pay in land, you can receive in precious metals.
This is the essence of the Ripple payment/clearing mechanism. I don't
believe any currency is perfect, I merely believe that initially, we
should look at vehicles similar to REIT's to jumpstart the system.
Once the point is gotten about the distributed heterogenous reserve
system, it is also helpful I believe to forget about trying to tightly
integrate all these substandard/experimental currencies/value systems
into it. Every ledger based system can now be represented as a
reserve node. Once a prototype is built that uses this arrangement,
it will only be necessary to abstract the reserve node architecture in
order to plug other currencies into the p2p decentralized reserve
network.
I would love to hash these things out with anyone interested at a
higher design level. I'm usually on gtalk via gmail most of the day M-
F 7-4 central time.
I've been wanting to write some more detailed stuff out, but am having
trouble with the communication.
> > > >> --http://agree2.com-ReachAgreement!http://extraeagle.com-Solutionsforthe electronic Extra Legal worldhttp://stakeventures.com-Bootstrappingblog
unwillingness of governments to respect the rule of law within their
own borders. Even if I believed from the standpoint of a currency
that it was as faulted as precious metals their are other reasons I
myself would use land.
But this misses the point I think, in that no one in the network has
to use the same type of reserves. I can use land over here in Kansas,
you can use whatever you want wherever you're at. A decentralized
distributed reserve system would be heterogenous in the types of
reserves. I can pay in land, you can receive in precious metals.
This is the essence of the Ripple payment/clearing mechanism. I don't
believe any currency is perfect, I merely believe that initially, we
should look at vehicles similar to REIT's to jumpstart the system.
Once the point is gotten about the distributed heterogenous reserve
system, it is also helpful I believe to forget about trying to tightly
integrate all these substandard/experimental currencies/value systems
into it. Every ledger based system can now be represented as a
reserve node. Once a prototype is built that uses this arrangement,
it will only be necessary to abstract the reserve node architecture in
order to plug other currencies into the p2p decentralized reserve
network.
I would love to hash these things out with anyone interested at a
higher design level. I'm usually on gtalk via gmail most of the day M-
F 7-4 central time.
I've been wanting to write some more detailed stuff out, but am having
trouble with the communication.
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