LIQ. Liquid

... how can one ensure the availability of money (MNY) and strengthen the Means of Exchange (MEX)?

If an asset cannot be readily sold for its full value, how can it be called money?

If someone owns an apple and it is worth $10. Can he exchange it for $10? Only if the market is liquid. If there is only one buyer he may demand a lower price if the seller is desperate.

Money must be readily available and 'liquid.'

Is our current money 'purely liquid'? First we must define 'purely liquid'. An asset is purely liquid if it can be used in exchange the instant it is received.

Under this definition our current paper money is 'purely liquid' if you ignore the time it takes to travel from the physical location of receipt to the physical location of spending.

On the other hand our 'cash deposits' are not. A check may take days to clear the system even if it is deposited as soon as received. Debit card transactions also may take time to settle.

If possible we should make the time that funds become available to spend after receipt as small as possible.

Therefore:

Money must be liquid. If it can be 'purely liquid' make it so.


Liquidity of money can be achieved with Instant Transfer (INS) and controlled by Controlled Inflation or Demurrage (DMR).



results matching ""

    No results matching ""