Understandable, but would you expect that in an efficient dath-ilani-like rational market, expectations would tend more to… match production with minor deviations? This is probably the crux here—if no reasonable amount of average person thinkoomph changes the radical fluctuations in expectations, then this currency is inefficient for regular shopping purposes and I say oops. I still can’t imagine what currency would be better than this, though, because I can’t think of a better way to say “I’m just as smart as the market” than to put my entire stake in the market.
To the extent they don’t have epidemics or handle them better, and don’t elect Trump, it’s probably more stable.
I still can’t imagine what currency would be better than this, though, because I can’t think of a better way to say “I’m just as smart as the market” than to put my entire stake in the market.
Why are you assuming that the unit in which you denominate prices, and the way in which you store your savings are the same thing? Even on earth, most wealthy people only keep a small percentage of their net worth in cash.
These have two different purposes, so are done in two different ways.
Because only the most wealthy people on earth keep their money in stocks, but they need to somehow communicate with all the other people who don’t, so they only exchange “money for the worse money everyone else uses” when they trade. If everyone kept their money in stocks, I would expect people to exchange them directly without exchanging money for money, because you actually have to analyze MORE if you have two different currencies that you use for different purposes.
To the extent they don’t have epidemics or handle them better, and don’t elect Trump, it’s probably more stable.
Not enough. In my understanding, GDP is REALITY and shares as a representation of your expectations somehow do not correspond to reality by tens of percent, which is worse than even our earthly prediction markets. If you, say, build a power plant with a payback in 10 years, in an efficient market the expected repair costs, service life, the chance of displacement by other technologies, and so on are already included in the price of this asset, so the increase in GDP (the cost of the plant as an asset) and the capitalization of shares (expectations) should correspond?
It is perfectly possible that they directly exchange stocks but denominate prices (and wages, contracts etc.) in a much more stable unit. The bank takes care of working out how much stock to transfer to make a given fiat denominated payment.
Understandable, but would you expect that in an efficient dath-ilani-like rational market, expectations would tend more to… match production with minor deviations? This is probably the crux here—if no reasonable amount of average person thinkoomph changes the radical fluctuations in expectations, then this currency is inefficient for regular shopping purposes and I say oops. I still can’t imagine what currency would be better than this, though, because I can’t think of a better way to say “I’m just as smart as the market” than to put my entire stake in the market.
To the extent they don’t have epidemics or handle them better, and don’t elect Trump, it’s probably more stable.
Why are you assuming that the unit in which you denominate prices, and the way in which you store your savings are the same thing? Even on earth, most wealthy people only keep a small percentage of their net worth in cash.
These have two different purposes, so are done in two different ways.
Because only the most wealthy people on earth keep their money in stocks, but they need to somehow communicate with all the other people who don’t, so they only exchange “money for the worse money everyone else uses” when they trade. If everyone kept their money in stocks, I would expect people to exchange them directly without exchanging money for money, because you actually have to analyze MORE if you have two different currencies that you use for different purposes.
Not enough. In my understanding, GDP is REALITY and shares as a representation of your expectations somehow do not correspond to reality by tens of percent, which is worse than even our earthly prediction markets. If you, say, build a power plant with a payback in 10 years, in an efficient market the expected repair costs, service life, the chance of displacement by other technologies, and so on are already included in the price of this asset, so the increase in GDP (the cost of the plant as an asset) and the capitalization of shares (expectations) should correspond?
It is perfectly possible that they directly exchange stocks but denominate prices (and wages, contracts etc.) in a much more stable unit. The bank takes care of working out how much stock to transfer to make a given fiat denominated payment.