Friday, September 19, 2014

Potential Money and Bubbles

Potential Money

Andre Willers
19 Sep 2014
Synopsis :
The concept of Potential Money is used to show the mechanics of Bubble inflation .
Discussion :
1.Potential Money (PM) of an Amount (M) is the sum of all the money that can be made by any scheme using M .
2.PM can be infinite , but is usually limited by the imagination of the user .
3. Examine case of two parties , Seller (S) and Buyer (B)
4. The Buyer makes an offer to the seller , who can accept or reject the offer .
5. The crucial point : there is a time-delay which causes imbalances in the Potential Money of the two parties .
6. The person making the offer (the Buyer) is at a disadvantage insofar as it appears as if he has less Potential Money .
Potential Money gradients per transaction
Offer in transit
Accept in transit
<-- o:p="">
Reject in transit
<-- o:p="">
Balance iro buyer
Offer in transit
Accept/reject in transit
Balance iro seller
During transit times , the Buyer is at a potential disadvantage
7.What does this mean ?
An experienced negotiater or salesman will always try to get the other party to make the initial offer .
“What do you want for it?”
8.The interest on the Potential Money in transit acts as an attractor and also gets added to the Potential Money of the party .
Since PM can be very large and busily in transit , this will act like an inflator to blow bubbles in the values of Potential Money , with runaway
Positive feedback .
Monetary Bubbles seem to be inherent in any type of transaction .
9.Potential Money interest rate :
Since this is the major culprit , managing it seems to be the best option .

10 Taxation :
Taxing Potential Money Interest seems promising , though I can hear the screams now .
9. This model can be easily adapted to physics .
Have potential fun .
Especially the Potential tax that has to be paid in real money !
Potentially yours


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