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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Replying to @_Vimothy_ @MimeticValue
tbc you said I haven't provided anything that shows money markets aren't mimetic, but there's no hard and fast distinction between "bonds" and "money"
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Replying to @_Vimothy_
Huge difference. Bonds = debt, not complete settlement of account. Bonds represents the underlying assets of a government/company and need to be enforced, while gold/hard money/btc represents nothing else, and only had value due to mimetic desire (interdividual consensus).
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as Ive been arguing over and over, there is no real difference. certain debt instruments function as money in certain markets, they dont undergo some fundamental transformation at that point. they're still debt. (eg, in certain financial markets, us treasuries function as money)
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Replying to @_Vimothy_ @MimeticValue
imagine a company that buys a bunch of stocks and bonds. it finances this portfolio by issuing liabilities. the value of its assets arent purely mimetic (according to you). how about the value of its liabilities? now, call this institution a "bank" and repeat the same analysis...
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