I'm trying to understand... This is accounting. I don't see how this says anything about how the behavior of money on the market is not mimetic. How a bank manages the money internally doesn't have anything to do with money as a medium of exchange.
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Replying to @MimeticValue
Sorry to drop this convo earlier, travelling. A financial asset's value is not solely determined by network consensus/mimesis, it also depends on fundamentals. Money is just another fin asset in practice and is subject to same constraint.
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Replying to @_Vimothy_
What are these constraints and how do you define money?
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Replying to @MimeticValue
the constraint is that the value of a financial asset is tethered to the underlying cash-flows, indefinite divergence is not sustainable
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Replying to @_Vimothy_ @MimeticValue
money I'm defining as whatever instruments circulate as money in practice. this is context dependent, eg bank deposits in a retail context, repo in wholesale
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Replying to @_Vimothy_
Sure, but that doesn't say anything about mimetic desire. The motivation for the underlying cash flows are still mimetic desire other than the most basic instinctual needs.
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Replying to @MimeticValue
also you mentioned that stocks and bonds were not purely mimetic. how so? and money is? how are you distinguishing money from other credit instruments?
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Replying to @_Vimothy_
Yes, because you can do fundamental analysis for of companies for stocks and bonds. Money is the medium of exchange (mimetic/reciprocal behavior in the domain of valuation) itself.
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Replying to @MimeticValue
now we get to the meat. what do you mean by "fundamental anaysis"?
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money is just a financial liability which although subject to complicated intermediation is ultimately a claim on real economic resources
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