Paper Anticipates the Run on Repo Markets

[Joe Leote]

This is an excellent paper. It anticipates and explains the potential
concern of a "run on repo" markets by several years and discusses
historic problems with banking system liquidity using simple language.

Why Is the U.S. Treasury Contemplating Becoming a Lender of Last Resort
for Treasury Securities?
http://www.newyorkfed.org/research/staff_reports/sr223.pdf

Joe

[Jean Erick]

    Joe, this pdf really got me excited.  I can only attempt to grasp most the concepts but if you haven't seen this, you've got to.

Very short and simple.

     As a sidenote, reading about "traceability" reminded me of my idea of debt labeled as to how many times it has been reloaned.  A number referencing how long its "serial intermediary" path is.  It identifies money-debt as to its character, not to a specific persons resources.  The "money" is public, the "source" is private.  I think this relates to third party issues and solves it to a degree.

 

http://www.aals.org/am2005/saturdaypapers/1030sommer.pdf

 

James

 

[Joe Leote]

James,

This paper says, "The law of bank deposits is a law of authenticated communications." In human perception there are: (1) patterns of behavior; and (2) interpretations of what these patterns mean. The law is a formal mechanism for recognizing certain patterns. Money is just a distinct mode of self-other communication. It need not be authenticated communication unless and until a dispute arises, then one needs reliable witnesses or documentation to convince the trier of fact and law.

Joe

[Jean Erick]

       I think your basis is good.  I stop previous to "the law".  Once individuals have perceived, they need your "mode of self-other communication".

Monologue and dialogue as the two basic modes.  The court of law in the western hemisphere is the -official- establishment of man's aspirations to dialogue.

I added aspirations after reading about -legal realism-.  Science as the -unofficial- establishment of dialogue.  And I suspect it is less subject to corruption.

      Both politics and money are simply different mechanisms for the distribution of the power to self-other communicate.  Both, according to their structure and workings,

will allow, support dialogue or monologue.  The tyrant, via politics or money, engages in monlogue.  Democracy is the aspiration to dialogue.

 

     Also, there is a need for authenticated communications in order to AVOID disputes in the first place.  The reasoning behind the law of accounts is that we simply

cannot function so voluminously and complexly if we allow even the most minimal disputes to arise.  Spending time resolving disputes has the potential to retard the liquidty of transactions to the point of destruction of any endeavor.  You don't get in a rowboat if you think there are going to be disputes between the ocean and the boat on how much water the boat will let in.

 

     People are organized to endeavor by the effective thoughts of the many thoughts running around their brains.

 

James