20 Dec 2012

I Found a New Place to Dwell

All Posts 4 Comments

I’ve revamped the “Read At Your Own Risk” links since the old list was pretty stale. The one major change I want to draw to your attention is the addition of J.P. Koning’s blog. Just click on it right now and scroll through the topics. If you are interested in the history of monetary institutions, I don’t know a better place to send you.

4 Responses to “I Found a New Place to Dwell”

  1. Davis says:

    Where’s my blog?

  2. JP Koning says:

    Thank you, sir. I’m honoured.

  3. Ken B says:

    So your list is all shook up?

  4. Tel says:

    Looks very interesting, I’ll add it to my list of things to read.

    I’ve started to wonder, what would happen if a country had two central banks that were forbidden to directly communicate and forbidden to buy or sell each other’s fiat currencies? Private banks could then denominate accounts in either “A” currency or “B” currency or most likely they would provide services for both options as well as an exchange rate between the currencies.

    Government would then levee income tax and corporate tax on a face-value basis and you could pay your tax in which ever currency you prefer. Similarly, people being paid by government could request to be paid at face value in either “A” or “B” currency at their preference and government just reaches across to the appropriate central bank and issues more currency to pay (or electronically updates people’s accounts if you prefer).

    So if central bank “A” set slightly lower interest rate than central bank “B”, then people inclined to save would try and pay their tax in “A” to get rid of those, but they would prefer to get paid in “B” to get better returns on their savings. However investors and entrepreneurs wanting to borrow would prefer “A” because they can borrow more cheaply and probably these businesses are not paying tax in the first few years (most start-ups make a loss for a while).

    Just an idea…

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