It’s called the “tow truck protocol”. The specifics are too complicated to get into here, but it involves a phone call, and sometimes they bring in an outside agency known only as “AAA”.
That would simply empower the countries with the most gold resources, eliminate access to capital for countries with little or no natural gold resources. On top of the obvious practical considerations for storing, securing, moving, and transferring it, gold is also extremely vulnerable to manipulation, corruption, contamination, and frequent, unpredictable swings in value. That’s kind of why we abandoned the gold standard to begin with.
Can you point to an example where cryptocurrency has directly alleviated either of those systemic problems? I wouldn’t think that it’s the currency itself that would cause, exacerbate, temper, or resolve the underlying root problems that contribute to the instability of a sovereign currency or its citizens access to it. To use a practical example, if I was struggling to maintain my finances as a citizen of Argentina, I understand that I can purchase Bitcoin and that may (or maybe not) be more stable than the the domestic fiat currency, but then…how do I spend that Bitcoin without encountering many/all of the same problems I’d hoped to avoid? How do I purchase routine goods and services? How do I pay for my home or utilities? In what way, specifically, does Bitcoin empower an average Argentinian to extend their self-determination and protect themselves from their country’s financial instability? Can Insafely and reliably exchange cash for Bitcoin, and vise versa? If not, then we’re back to inaccessible banking services as the first stumbling block. Assuming I managed to exchange my cash for Bitcoin, how am I storing it safely? If an offline wallet is vulnerable to being lost due to defective storage devices, and an online wallet is vulnerable to malicious actors within and without of the most popular exchanges, and maybe I don’t have great access to the internet?
I have always been skeptical of this idea that cryptocurrency is the solution to uncontrolled inflation/deflation, and an accessible alternative to the unbanked/underbanked people of the world. It seems naive, at best.
One of the first things I learned in film school is _nothing_ in a production at that level is coincidence or serendipity. To get to the final script and storyboard, the writers would have gone through multiple drafts, and a great deal of material gets either cut, or retooled to reinforce thematic elements. To the extent that The Simpsons was a goofy cartoon, its writers’ room carried a great deal of intellectual and academic heft, and I don’t doubt for a moment that there was full intention with both the joke itself, and the choice to leave the character’s motivations ambiguous.
> One of the first things I learned in film school is _nothing_ in a production at that level is coincidence or serendipity.
Perhaps they should have taught you to be less sure of that. So many takes in movies that ended up being the best one are where a punch accidentally did land, something is ad-libbed, a dialogue is mixed up, etc.
To take an example of a very critically acclaimed show: in Breaking Bad the only reason we got Jonathan Banks in the role of Mike is because Bob Odenkirk had a scheduling conflict, and Banks improvised a slap during his audition. Paul Aaron even complained about it indicating that he would not have agreed to it.
This is a cartoon though, significantly less adlibbing, everything has already been storyboarded and scripted out etc.
Pixar's approach to making their movies is a fascinating highly iterative process going through many story boards and internal showings using simplistic graphics before proceeding to the final stage to produce a polished product. I wonder how Simpsons do it.
> One of the first things I learned in film school is _nothing_ in a production at that level is coincidence or serendipity. To get to the final script and storyboard, the writers would have gone through multiple drafts, and a great deal of material gets either cut, or retooled to reinforce thematic elements. To the extent that The Simpsons was a goofy cartoon, its writers’ room carried a great deal of intellectual and academic heft, and I don’t doubt for a moment that there was full intention with both the joke itself, and the choice to leave the character’s motivations ambiguous.
Not everything, for example I read somewhere that chess "fight" in Tween Peaks was random and didn't adhere to chess rules because no one really paid attention to record or follow moves.
The entire writing room was Harvard grads and people who went on to accomplish impressive things in the industry (eg Conan O’Brien was a writer, David X Cohen was a writer and then went on to cocreate Futurama with Groening). The early writing team was one of the sharpest ever assembled and dismissing it as a “goofy cartoon” is missing the talent behind it just like if you dismissed Futurama in that way.
For the economic impact of monetary systems, the main role of currencies is handling credit - handling direct transactions is intuitively the direct application, but the impact of transaction costs ('costs' in the economic theory sense, not only the direct expenses but also any barriers, difficulties, risks, etc) on the economy, while significant, is not as huge as the impact of availability of credit and supply of money.
For example, when considering dollars, having the possibility to detach the dollar from the gold standard was so extremely valuable to the economy that all the possible transaction costs with handling paper or coins are a rounding error compared to that. Enabling fractional reserve banking is an immense effect on the productive output, due to the big increase in productive investment it enables, so it matters a lot whether a monetary system can support that. Historical changes to what metals were used for coins had a huge impact on economy not because of some decrease in transaction costs but because of changes to money supply. Etc.
At it's core, the primary function of finance is (and arguably has historically always been) handling debt, not handling transfers. So evaluating a currency system on the basis of how good it is for transactions is kind of putting the cart ahead of the horse, if the nature of that currency has, as most cryptocurrencies do, a major impact on the money supply (and thus handling debt).
This is correct, All currencies have transaction costs, but compete on having lower transaction cost than the alternative.
The theoretical maximum is zero transaction cost for a transaction. It cant go positive. Components of transaction cost are triangulation, transfer, and trust. Currencies attempt to lower the cost of the transfer and trust components.
Any positive value a currency claims to have as method for settling transactions is just a differential with another method.
There is a cost to going to an ATM and carrying USD cash, but it is lower than carrying around 100lbs of cabbages to barter with.
Don't forget externalities. E.g. you can get a fee-free bank account with fee-free cash withdrawals, courtesy of the bank being able to loan out that money under fractional-reserve restrictions. In that sense transactions can pay for themselves. Presumably nobody would print money if it wasn't being put to use. Hence, novel currencies can enable novel business models and potentially do more than just lower transaction costs in a zero-sum way. (Admittedly the value of such business models at present, e.g. crypto scams, is somewhat debatable)
Economic activity. Switching from free banking [1] to a centralised currency made trade easier in America which increased the amount of trade. It's why monetary unions work [2].
Bitcoin, similarly, has enabled certain modes of trade that previously didn't exist.
I think that is more of consequence resulting from lower transaction costs, rather than an economic externality. That said, I understand the definitions of externality is changing in popular usage.
> that is more of consequence resulting from lower transaction costs, rather than an economic externality
An externality is "an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity" [1]. If Visa reduced its fees, the merchant's additional profit is an externality.
> understand the definitions of externality is changing in popular usage
Third-party economic consequences have always been the definition [2].
As I see it, I think the distinction between consequences and externalities is that externalities are applied to cost and pricing, but not concepts.
Wikipedia doesn't go too deep into when externality analysis is appropriate or useful, but hints at this in the following sentence to the one you quoted.
>Externalities can be considered as unpriced components that are involved in either consumer or producer market transactions
Something like the advent of centralized currency isnt a priced good or action, so it doesnt make sense to say it has a positive externality (e.g the transaction price of "centralized currency adoption" is not a priced object).
This is why it is more appropriate to say something like the advent of centralized currency has consequences instead.
Regarding the Visa example, the merchant isn't a uninvolved 3rd party, so the profit is not an externality. Value on the table during an economic exchange is not an externality. Similarly, the value created or lost for each interacting party is not an externality.
One more thoughts on common externality misconception.
The general connotation is that externalities describe pricing failure and market failure (e.g. pollution). The usefulness externality analysis breaks down quickly when you move from realized external costs or benefits to opportunity costs or benefits.
If a $1 pill saves a worker's life, is the value that person generates over the remainder of their life an externality. Technically yes. If you sell them a pill again a year later, the same is true. That doesnt mean the pill is priced incorrectly.
This illustrates how externalities can be duplicative and should not be confused with pricing errors.
> the transaction price of "centralized currency adoption" is not a priced object
Of course it is. Joining a currency union carries costs.
Broadly speaking, you're correct: the term has ambiguous meaning. My point is that isn't something new, but an element that has always been with the term.
I think that still runs afoul of the "uninvolved 3rd party" part of the definition.
Two actors can both generate value from a transaction due to a difference between price and their respective utility value for what is traded. This producer and consumer surplus is explicitly distinct from externalities.
If there is a currency deal between the US and Argentina, the consequences to those countries are not an externality. However, if this deal produces a 2nd order change in the Chinese RMB, some would call that an externality, although I would call it a consequence (because externality implies mispricing)
Your right on the first point, but I would consider the “productive output” to be the product and services that ultimately drive the trade. While there are plenty of contemporary hedge funds that would disagree with me here—with few exceptions, simply moving numbers around, constructing high-level abstract financial instruments, and/or arbitrage trading is not what I would consider productive activity. After all, if there are no firms designing widgets, mines digging up widget ore, factories making widgets, logistics moving widgets, stores selling widgets, technicians supporting widgets, or consumers using widgets, then there quite literally is no market.
Cryptocurrency has precious little to demonstrate itself as an analogous store of value to legitimate, organic market activities. It’s primarily been a tool for speculation, as well as evading regulatory and legal scrutiny. I believe Bitcoin has been an incredibly valuable and unique experiment, a fascinating exploration of human nature and our culture of trade. Much of the technology behind it, like the blockchain have found useful applications, but mostly outside of cryptocurrency proper. But it’s been long past the point where, if cryptocurrency had a unique purpose with which it was particularly suited towards, it should have found that purpose by now.
If one takes a strictly amoral perspective, then I suppose the cultivation, manufacture, transportation, sale, and consumption of illegal drugs would technically fit within my prior definition of “productive output”. Whether or not that’s worth its own overhead, complexity, inherent risks, and the collateral consequences to most/all of the humans involved with that productivity is a larger question…and to be fair, a lot of those concerns are nothing new or unique to cryptocurrencies.
But if the intention is to weigh a given currency’s efficacy and inherent value against a broader slate of considerations then, in my opinion, the most definitive distinctions by far between cryptocurrencies and traditional sovereign fiat currencies is the tangible, productive, economic output of its respective national domestic industries that naturally selects and underpins its perceived value and stability.
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TLDR; it isn’t some collective delusional belief that makes a dollar worth a dollar, but rather the aggregate sum of the American people’s labor and dynamism, which isn’t nearly so easy to handwave away, as some of the more myopic cryptocurrency advocates have been known to do in an attempt to undermine traditional financial systems, and draw a misleading distinction between fiat currencies and cryptocurrencies.
The story of Nora Inayat Khan is an affecting tale of incredible bravery, heroism, and selfless sacrifice. She nearly survived the war, but was captured only days before she was due to be extracted, and died at the hands of one of Germany’s most sadistic torturers. Nora Khan was a “regular” citizen who rose to the moment, committed herself entirely to the allied cause, and nearly single-handedly maintained radio contact between Paris and London during a critical stage of the conflict.
Another incredible agent in WWII was Virginia Hall, aka the limping lady, who managed some pretty incredible feats, escapes, and rescues and did so with only one leg.
The Russian sniper women still don’t have a good Hollywood movie about them. Russian government would be upset for bringing it up but the female snipers often worked in pairs and you can totally find some truthful bits of lesbianism to include…
But instead of looking to really history that actually happened, we get the BF5 trailer fake history nonsense
I was just listening to a podcast that did a season about her [1]. It's kind of in an audiobook style, with some guesses about dialog, which makes it pretty engaging to listen to beyond just that the story itself is interesting.
If you're interested in it, they also did a season on Duško Popov [2] (supposedly the spy that was the inspiration for 007), and one on Aimen_Dean who was an MI6 spy in Al-Qaeda, which includes an interview with him at the end.
Some of it being the blood of Tippu Sultan, who died fighting against the British to protect the independence of Mysore (and whose rocket technology the British stole and led to the verse in "The Star-Spangled Banner" about "the rocket's red glare, the bombs bursting in air"). If anyone had any reason not to assist the British Empire, it was her.
I mean, classism is about as real as racism but I don't know why one would ask about classism vs race. Class is about as not real as race; they're both things that people made up to justify their disrespectful behavior towards others.
race as an idea is a societywide royalty of blood, which is why its so widespread in failed democracies with despots."We are all zhar/oligarch/king" and those not from here are the serfs.its the very same idea just bastardized.
Considering the current state of the industry, and the prevailing corporate climate, are you sure your job is about to get easier, or are you about to experience cuts to both jobs and pay?
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