Non-intuitive for me, maybe obvious for those that are from finance, etc.
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Replying to @nouswaves
*Obviously* cash is "liquid" but try using it to pay for something very expensive that requires credit checks and paper trails.
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Replying to @nouswaves
And clearly cards are useful because they're widely accepted for small and large purchases. But the bank now has a liquidity on-off switch.
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Replying to @nouswaves
That high utility item can become a low utility item at somebody else's command.
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Replying to @nouswaves
When people normally think about this they normally think about sacrificing liquidity for (hopefully) high-yield investments, etc.
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Replying to @nouswaves
There are also transactions which require money *and* a status check (instead of a credit-check.) e.g. entering a night club.
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Replying to @nouswaves
So from that there are now institutions that imbue money with status: amex centurion card, various luxury high-flyer memberships, etc.
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Replying to @nouswaves
@sebinsua It's not the money that has the status, but you. Those things you describe are just signals. They show you are credit worthy.2 replies 0 retweets 0 likes
@hibikir1 And the requirement that in the absence of a database of this information we sometimes carry signalling tokens containing ...
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Replying to @nouswaves
@hibikir1 ... checks signed by an authority of value. Products by brands like Versace are status-checks crystallised.0 replies 0 retweets 0 likesThanks. Twitter will use this to make your timeline better. UndoUndo
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